Today’s MRKT Call is Presented by Fidelity

The Sell in May and Go Away Trade

Dan Nathan, Guy Adami and Carter Worth break down the top market headlines and bring you stock market trade ideas for Monday, April 29th.

Click here to access all of the charts mentioned in today’s MRKT Call.

XLK (~$201) Buy June 200 - 180 Put Spread for ~$4

• Buy to open 1 June 200 Put for ~$4.85

• Sell to open 1 June 180 Put at ~85 cents

Break-Even on June Expiration:

• Profits of up to 16 between 196 and 180, max profit below 180

• Losses of up to 4 between 196 and 200 with max loss above 200

Trade Rationale & Management:

• This trade idea risks 2% of the ETF price with a break-even down 2.5% and a max potential gain of 8% if the ETF is down about 10%.

• Like all long premium directional trade ideas, I will look to cut losses down 50% of the initial premium paid and look to take half off if up 100%

Buy May 17th 26 Call for $0.50

• Profits above $26.50

• Losses of up to 50 cents between 26 and 26.50 with max loss below 26

Trade Rationale and Management:

• This trade idea risks 2% of the stock price and breaks even at 3%. If the company has the slightest good news on its guide, the stock could be up 10% in a snap. This is a defined-risk way to be contrarian. 

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Today’s On The Tape is Presented by CME Group, iConnections and SoFi

BoJ Begging For Mercy + A Conversation with Peter Polanskyj of Obra Capital

On this episode of “On The Tape,” Dan Nathan and Liz Young give their take on earnings season thus far (4:00), Meta (8:00), CEOs talking about the consumer (14:00), how the stock market could react to the Fed Meeting & Jobs Report this week (20:00), yields/currencies (24:30), and their takeaways on what to expect from a busy week for the stock market (29:30).

Later, Guy is joined by Kaitlin Malin, COO of iConnections, to interview Peter Polanskyj of Obra Capital. They hit his background/about Obra (36:00), the business of structured credit (37:30), the low-interest rate environment (39:30), positioning for higher for longer (43:00), looking at the macro picture (45:00), the value proposition for Obra Capital (47:00), Obra Capital’s insurance strategy (52:00), typical investment cycles (53:30), lessons in investing (55:00).

WHAT WE’RE READING

• Wall Street Bulls Say Stock Rally Can Resume Even Without Rate Cuts (Bloomberg)

• Buy the dip on tech stocks like Apple and Nvidia ahead of earnings, Morgan Stanley says (CNBC)

• Carry Trade Gets Turned on Its Head, Stoking Rush to the Dollar (Bloomberg)

• Even If the Fed Cuts, the Days of Ultralow Rates Are Over (WSJ)

• Apple and Tesla relief rallies could have further to go, according to the charts (CNBC)

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