RiskReversal Recap March 14, 2024

Chart Check on Tech, QQQ Trade Idea, Adobe Earnings Preview

Author

RiskReversal Media
March 14, 2024

Today’s MRKT Call is Presented by FactSet

Chart Check on Big Tech

Dan Nathan, Guy Adami, and Carter Worth break down the top market headlines and bring you stock market trade ideas for Thursday, March 14th.

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

Nasdaq 100 ETF (QQQ)

QQQ Implied Volatility (Price of Options)

Bearish QQQ Trade Idea

Trade: QQQ ($440) Buy May 440/400 Put Spread for ~$9

  • Buy to open 1 May 440 put for ~$12

  • Sell to open 1 May 400 put a ~$3

Breakeven on May Expiration:

  • Profits of up to 31 between 431 and 400 with max gain below 400

  • Losses of up to $9 between 431 and 440 with max loss above 440

Trade Management and Rationale:

  • 2% downside breakeven

  • Max gain down 10% in two months

  • Implied volatility is reasonable

  • 50% premium stop

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WHAT WE’RE READING

  • Fed Gets More Reasons to Delay Interest-Rate Cuts (Bloomberg)

  • Interest Rates Definitely Have an Impact on Affordability, says Lennar Co-CEO on the Housing Market (CNBC)

  • Second Trump Term Would Spark a 3% Dollar Rally, Barclays Says (Bloomberg)

  • Tesla’s Stock Dip Drops Elon Musk Behind Bezos To World’s Third-Richest Person (Forbes)

  • Shares of Dick’s Sporting Goods Soar 15% on Holiday Earnings Beat, Dividend Raise (CNBC)

  • Big Profits and High Prices: There Is a Connection (WSJ)

  • Liz Young: The Longest Time (SoFi)

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