Today’s MRKT Call is Presented by Fidelity

Big Tech Catch-Up Trade

Dan Nathan and Guy Adami break down the top market headlines and bring you stock market trade thoughts and ideas for Tuesday, March 19th.

Topic Timecodes:
Semi Stocks (0:00); Google/Alphabet (12:00); Boeing (22:00); MU, NKE & FDX Implied Moves (27:50)

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

Buy May 150/170 Call Spread for ~$5

• Buy to open 1 May 150 call at $6.40

• Sell to open 1 May 170 call at $1.40

Break-Even on May Expiration:

• Gains of up to 15 between 155 to 170, max gain above 170

• Losses of up to 5 between 155 and 150, max loss below 150

Trade Management and Rationale:

• This trade idea risks ~3% of the stock price, with a break-even up ~6% and a max gain of 3x premium at risk (or 10% of the stock price) up 16%

• As always, with long premium directional trades, we will aim to reduce the loss to nearly 50% of the premium originally paid.

June 185/220 Call Spread for ~$9

• Buy to open 1 June 185 call for ~$11.25

• Sell to open 1 June 220 call ~$2.25

Break-Even on June Expiration:

• Profits of up to 26 between 194 and 220 with a max gain of above 220

• Losses of up to 9 between 194 and 185 with a max loss below 185

Trade Rationale and Management:

• This trade risks 5% of the stock price for three months with a stop out at key technical support while offering a near 3 to 1 payout (or ~15% of the stock price) if the stock is up ~20% on June expiration.

• As always, with long premium directional trades, we will aim to reduce the loss to nearly 50% of the premium originally paid.

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WHAT WE’RE READING

• Nvidia Shares up After Company Unveils Latest AI Chips (CNBC)

• Fed Could Cut Rates Fewer Times Than Expected as Economy Keeps Growing, According to CNBC Survey (CNBC)

• Super Micro Stock Tumbles After Company Announces Stock Offering (WSJ)

• Magnificent Seven Adds $250 Billion On Gemini’s Reported iPhone Deal (Forbes)

• ‘Most-Crowded Trade’ Fuels Rebound in US Stocks (Bloomberg)

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