Today’s MRKT Call is Presented by Fidelity

Should Investors Brace for More Stock Market Volatility?

Dan Nathan and Guy Adami break down the top market headlines and bring you stock market trade ideas for Tuesday, March 12th.

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

How to Calculate an Implied Move Using Options:

March 28th Weekly 442 Sstraddle Price ~$13 / Divide by Strike $442

• March 28th 442 call @ ~$6.50

• March 28th 442 put @ ~6.50

Using Options to Protect Gains in Nvidia Stock:

Buy April 1000/850 Collar for Even Money vs. 100 Shares Long

• Sell to open 1 April 1000 call at ~$37

• Buy to open 1 April 850 put for ~$37

Trade Rationale:

This trade costs nothing and allows for gains of up to 95 or ~10% and losses of only $55, or about 5% between now and the April 19th expiration; you are taking advantage of the unusual demand for upside calls

How to Play Guy’s Bullish View in Gold Miners Using Options:

GDX ($29.55) Buy April 30/34 call spread for ~$0.90

• Buy to open 1 April 30 call for ~$1.10

• Sell to open 1 April 34 call at ~$0.20

Break-Even on April Expiration:

• Profits of up to 3.10 between 30.90 and 34 with max gain above

• Losses of up to 90 cents between 30 and 30.90 with a max loss below

Trade Rationale & Management:

This trade idea risks ~3% of the ETF price, has a break-even up ~4.5% and a max gain of ~10% of the ETF price if up nearly 15% in a little more than a month

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WHAT WE’RE READING

• Stubborn US Inflation Poses Headache for Fed, Biden (Bloomberg)

• Jeremy Grantham says outlook for U.S. stocks is as poor as ever, sees initial AI bubble eventually bursting (CNBC)

• BofA Strategists Boost S&P 500 Profit Forecast to Join Top Bulls (Bloomberg)

• Morgan Stanley’s Wilson Sees No Reason to Raise S&P 500 Target (Bloomberg)

• Forget the Magnificent 7 — Top tech analyst Mahaney recommends the ‘Electric Eleven’ (CNBC)

• Airlines Are Cutting Flight Schedules as Boeing Delivers Fewer Jets (WSJ)

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