Today’s MRKT Call is Presented by Fidelity

Market Breadth Check, Charting Yields & Walmart Trade Idea

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

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

Buy June 60/55 Put Spread for ~$1.25

• Buy to open 1 June 60 put for 1.50

• Sell to open 1 June 55 put at 25 cents

Break-even on June expiration:

• Profits of up to 3.75 between 58.75 and 55, max gain of 3.75 at 55 or lower 

• Losses of up to 1.25 between 58.75 and 60 with a max loss of 1.25 at 60 or higher

Trade Rationale and Management:

• This trade idea starts in the money by a little less than 1%, has a break-even down of less than 2%, and has a max potential gain of 3x the premium at risk if the stock is down ~8% on June expiration.

• As always with long premium directional trades, I will use a 50% premium stop and look to take half off if a double on the upside.

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WHAT WE’RE READING

• S&P 500 Gets Close to All-Time High Before Key CPI (Bloomberg)

• Fed Chair Jerome Powell Maintains Wait-and-See Posture on Inflation and Rates (WSJ)

• Walmart Lays Off Corporate Staff, Tells Workers at Three Tech Hubs to Relocate (The Information)

• Wall Street Casino Is Open for Business as Meme Stocks Take Over (Bloomberg)

• Google rolls out its most powerful AI models as competition from OpenAI heats up (CNBC)

• OpenAI launches new AI model GPT-4o and desktop version of ChatGPT (CNBC)

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