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☆ A bearish options trade on Apple that wins if the buyback enthusiasm fades
▼ + stars: | 2024-05-07 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Apple surged on Friday following Tim Cook's announcement of the largest stock buyback in stock market history. I'm aiming for a post-earnings "gap fill" trade on AAPL . Despite my long-term bullish outlook on AAPL, I'm considering a short-term bearish trade to fade this post-earnings spike. If AAPL starts against me, I would want to close the trade if I lose 50% of my investment (i.e., $125). BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Apple, Tim Cook's, AAPL, Nishant Pant

☆ An options trade that wins if stocks continue to struggle into May
▼ + stars: | 2024-04-30 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Note that the last time, the 10-day moving average crossed above the 21-day moving average was back in late October/early November when the markets were just beginning a new bull run. Based on this thesis I want to make a bearish bet on DIA using a trade structure called a bear put spread. The Trade: DIA is a highly liquid ETF and if you look at its option chain, you will notice that it offers $1 wide strikes. DIA YTD mountain SPDR Dow Jones Industrial Average ETF Trust YTD Amazon and Apple report earnings this week. These are all significant market moving events and so a solid risk management plan needs to be in place for any trades taken this week.

Persons: Dow Jones Organizations: Dow, Dow Jones, Trade, DIA, Apple

☆ A bearish options trade on this health care giant that's starting to show signs of cracking
▼ + stars: | 2024-04-23 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

However, with broader market indicators showing signs of weakness, UNH is starting to reveal cracks — and the once-strong rally appears to be losing steam. The trade setup The trade structure I am using here is called a "bear put spread." Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you. Since the width of our spread is $495– $490 = $5, I can buy the spread for $2.50. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: UnitedHealth, UNH, ADX, Nishant Pant Organizations: Change, ½

☆ A bearish options trade that wins if the AI-led chip stock rally runs out of steam
▼ + stars: | 2024-04-16 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

I'll discuss a bearish options hedge on a member of the chip sector that appears to be breaking down. Below is a 6-month daily chart of the iShares Semiconductor ETF (SOXX) , which monitors the chip sector. Among the semiconductor stocks, Micron (MU) stands out as a notable example. However, since securities can remain overbought for extended periods, it's important to wait for the RSI to dip below 70 before considering a bearish trade setup. The Trade Setup: The trade structure I am using here is called a "bear put spread" also known as "put debit spread".

Persons: Nishant Pant, Nishant Organizations: Nvidia, iShares Semiconductor, AMD, Broadcom, Micron, MU, YTD

☆ A high-probability options trade that wins if the comeback rally in energy stocks hits a wall
▼ + stars: | 2024-04-09 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

With this view in mind, I am looking for a bearish setup in the VanEck Oil Services ETF (OIH) . This ETF seeks to track the largest, most liquid companies involved in oil drilling and selling oil equipment based on market capitalization. However, my trading platform indicates that this will tie up $5,500 of portfolio margin, a significant amount for a potential profit of just $430. Yet, since I'm paying a debit for the $365 call, it also decreases my profit potential from $430 to $133. I will need a good trade management plan with a stop loss in case the trade starts going against me.

Persons: Max, Nishant Pant Organizations: VanEck Oil Services, Schlumberger, Halliburton, Oil Services

☆ This trade wins if interest rates stay high and hurt the housing market
▼ + stars: | 2024-04-02 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

To profit from this possibility, here's an options trade that bets against the housing market. US10Y YTD mountain U.S. 10-year Treasury yield so far in 2024 I'm contemplating a bearish trade on Lowe's (LOW) within the consumer discretionary sector. DMI (Directional Movement Index): When the DI+ (green line) is above DI- (red line), the stock is in an uptrend. The trade structure I am using here is called a "bear put spread" also known as "put debit spread". If LOW trades at or below my short strike by the expiration date, this trade can yield a 100% ROI on the amount risked.

Persons: I'm, I've Organizations: Federal, Treasury, Lowes Locations: US10Y

☆ Using options to bet on a Boeing turnaround
▼ + stars: | 2024-03-26 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

The shake-up at Boeing this week with the CEO set to step down by year-end has sparked optimism among investors. Boeing (BA) has faced significant challenges over the years with the latest incident involving a door plug on an Alaska Airlines 737 Max 9 in January. When the RSI falls below 30, it indicates that the underlying asset, in this case, BA stock, is in an oversold condition. The trade To go bullish on BA, the trade structure I have used here is called a bull call spread. You may find trading platforms using other names like call debit spread or long call spread.

Persons: Nishant Organizations: Boeing, Alaska Airlines

☆ How to bet against Nvidia using options if this is the top of the AI rally
▼ + stars: | 2024-03-19 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Considering this, I'm contemplating a bearish trade on Nvidia (NVDA) , utilizing a bear put spread as the trade structure. In the chart provided, I've highlighted a few notable points: RSI (Relative Strength Index): I've employed RSI to assess weakness. However, since securities can remain overbought for extended periods, it's essential to wait for the RSI to dip below 70 before considering a bearish trade setup. The trade The trade structure I am using here is called a bear put spread. NVDA YTD mountain Nvidia, YTD Here is my exact trade set-up: Buy $870 put, April.

Persons: I'm, I've, NVDA, Nishant Pant Organizations: Nvidia, Downside

☆ This options trade wins if inflation remains sticky, causing the Fed to further delay rate cuts
▼ + stars: | 2024-03-12 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Tuesday's CPI report shows slightly higher-than-expected inflation, suggesting that the Federal Reserve is likely to delay potential rate cuts. This could pressure interest rate-sensitive sectors like real estate and set up a potential profitable options trade. The trade The trade structure I am using here is called a "bear put spread". You may find trading platforms using other names like "put debit spread" or "long put spread" too. NOTE: With DLR trading around $146, I am looking to buy an ATM (at-the-money) put spread.

Persons: I've, Fibonacci, Nishant Pant Organizations: CPI, Federal Reserve, Digital Realty Trust, Realty Trust

☆ This one-time cybersecurity darling is hitting a rough patch. How to profit from its slide
▼ + stars: | 2024-03-05 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

The Trade Setup: PANW 305-300 Bear Put Spread The trade structure I am using here is called a "bear put spread" also known as a "put debit spread". To construct my bear put spread, I need to buy a $305 put and sell a $300 put as a single unit. Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: I've, PANW, Nishant Pant Organizations: Nasdaq, Palo Alto Networks, Elliott, Mar Locations: Palo

☆ A lower-cost bet that this struggling 'Magnificent 7' member will catch up
▼ + stars: | 2024-02-27 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Here's a lower-cost bet using options that Apple could catch up. However, there's a caveat: if the RSI fails to turn upwards, this trade set-up would be invalidated. The trade To take a bullish trade on AAPL, the trade structure I have used here is called a "bull call spread". Here is my exact trade setup: Buy $180 call, Mar. 22nd expiration Sell $185 call, Mar.

Persons: I've, AAPL, Nishant Pant Organizations: Nasdaq, Apple, Mar Locations: Here's, AAPL

☆ A bearish options bet that capitalizes on a double-top forming in this high-flying sector
▼ + stars: | 2024-02-21 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

A closer look at the 1-year daily chart of the Consumer Discretionary Select Sector (XLY) reveals the formation of a double top pattern. This is great because this allows me to construct a $1 wide put spread and risk as little as $50 to make $50 per winning trade. All I need is for XLY to drop by $1 by expiration date for this trade to double my money. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Nishant, Nishant Pant Locations: XLY

☆ Playing the sell-off: A bearish trade on an over-extended Nasdaq stock
▼ + stars: | 2024-02-13 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Here is a bearish contrarian trade using options on an over-extended tech stock. MDB is clearly in a bull run, so although I am considering a bearish trade here, I also need to be aware of the price levels which may act as support for the stock. If the stock does go into a pullback, I have shown 3 important levels where the stock is most likely to bounce back. So my long strike would be above the current price and the short strike would be below the current price. If MDB trades at or below my short strike by the expiration date, this trade can yield a 100% ROI on the amount risked.

Persons: MDB, Nishant Pant Locations: MDB

☆ Missed the Nvidia gravy train? Here's an AI catch-up trade
▼ + stars: | 2024-02-06 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

While the Nvidia (NVDA) gravy train may seem to have left the station for many, Qualcomm (QCOM) remains a compelling alternative for investors hungry to participate in the AI revolution. While specifics about Windows 12 remain murky, the integration of AI-specific features hints at a significant focus on AI hardware. This aligns well with Qualcomm's Snapdragon platform, which is already primed for AI integration and extends into various industries. To go bullish on QCOM, the trade structure I have used here is called a "bull call spread". The goal here is to ride the wave of optimism as NVDA's earnings approach and close the trade before the earnings event.

Persons: Cristiano Amon, QCOM, NVDA, Nishant Pant Organizations: Nvidia, Qualcomm, Windows Locations: QCOM

☆ A low-cost hedge if Big Tech earnings disappoint and the Nasdaq rally fizzles
▼ + stars: | 2024-01-30 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

If these tech giants disappoint in their earnings outlook, that would be enough reason for this rally to fizzle out, and Nasdaq could finally see a pullback. Here's a 6-month daily chart of the Invesco QQQ Trust (QQQ) ,which closely follows Nasdaq's price movement and can be used as a proxy to trade tech stocks. You may find trading platforms using other names like "put debit spread" or "long put spread," but they all mean the same. I did this because this trade is designed as a hedge against disappointing tech earnings, which are all happening this week, so I don't need a longer expiration date. QQQ 6M mountain QQQ, 6 months Since this trade is taken as a hedge, the expectation should be that if the markets don't tank after tech earnings, I will lose my initial investment.

Persons: Nishant Pant Organizations: Big Tech, Microsoft, Apple, Meta, Nasdaq

☆ A high-probability trade on Netflix as market anticipates a wild move post-earnings
▼ + stars: | 2024-01-23 | by ( Nishant Pant | ) www.cnbc.com time to read: +5 min

Netflix (NFLX) kicks-off the tech earnings season Tuesday after the close and the market as usual is anticipating a big price movement. We'll discuss a high probability bet that wins if Netflix moves by less than the market anticipates...in either direction. It is utilized to estimate the extent to which the options market anticipates the stock's movement following an earnings disclosure. Trade Structure and Analysis: SELL -1 NFLX 535-540 C/435-430 P Iron Condor CREDIT (also max profit): $140 MAX LOSS: $360 Trade Execution: These post-earnings trades are quick. Since these trades are high probability trades, I can expect 8 out of every 10 trades to become winners and the winners add up quickly.

Persons: Nishant Pant Organizations: Netflix, condor, Condor, Traders Locations: NFLX

☆ A trading strategy that wins if tech continues to struggle
▼ + stars: | 2024-01-16 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

Tech earnings kick off next week with Netflix reporting on Tuesday and Tesla on Wednesday. If these tech giants paint a rosy picture, market sentiment could turn around for the Nasdaq. With this view in mind, I am looking to place a small bet against the tech sector using Snowflake (SNOW) as my primary trading vehicle. The Trade Setup: SNOW $195-$190 Bear Put Spread The trade structure I am using here is called a bear put spread, also known as a put debit spread. Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you.

Persons: Tesla, Price, Nishant Pant Organizations: Nasdaq, Netflix, RSI

☆ This consumer stock appears to break down whenever it hits $415. How to trade it
▼ + stars: | 2024-01-09 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

The consumer discretionary and growth/tech sectors are the typically the first ones to take a beating when markets start pulling back. With this view in mind, I am looking to put on a bearish options trade on Domino's Pizza (DPZ) , which belongs to the sector. The Trade Setup: DPZ $410-$415 bear call spread With a bearish directional bias in place, the trade structure I have chosen is called a bear call spread also known as a call credit spread. To construct my trade, I will want to sell a $410 call option and buy a $415 call option as a single unit. So it is best not to trade when an earnings event overlaps your trade window.

Persons: seasonality, DPZ, Nishant Pant

☆ How to profit from the bearish start to 2024 with a bet against the small-cap benchmark
▼ + stars: | 2024-01-02 | by ( Nishant Pant | ) www.cnbc.com time to read: +5 min

Stock markets usually don't go up in a straight line and a pullback is possibly around the corner. With this view in mind, I am looking for a bearish trade on any of the major index ETFs. I have shown a chart of IWM which is an ETF that tracks the small-cap benchmark Russell 2000. The Trade Set-up: IWM $200-$199 Bear Put Spread With a bearish directional bias in place, all I need to do is find a suitable options structure to take a bearish trade. The trade structure I am using here is called a "bear put spread" also known as a "put debit spread".

Persons: DMI, Nishant Pant, Nishant Organizations: Russell, IWM, Trade Management

☆ An options trade that makes money when consumer spending starts to slow down
▼ + stars: | 2023-12-26 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

Like many sectors, the consumer discretionary sector has enjoyed a strong year, rallying more than 16% in 2023. Against this backdrop, one sector to watch is consumer discretionary. With this view in mind, I am looking to put on a bearish options trade on the Consumer Discretionary Select Sector SPDR fund (XLY) , which tracks the performance of the S & P 500 consumer discretionary sector. When selling credit spreads, you bring in a premium when you open the trade. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Wall Street's, XLY, Nishant Organizations: XLY Locations: Red

☆ A bet that this monster rally is stalling out and this sector will start to suffer first
▼ + stars: | 2023-12-19 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

The broad monster rally which started in November has shown no signs of stalling yet, but it will eventually. We'll present an options trade here to capitalize on that sector rotation, specifically how to bet against an industry likely to see outflows. If the healthcare sector keeps pulling back, most of the stocks in this sector will also tend to pull back. This is a lot of money for a mere $600 potential profit. Since I am paying a debit to buy the $420 call, it also reduces my profit potential to $155.

Persons: XLVwas, Nishant Pant Organizations: Vertex Pharmaceuticals

☆ A way to bet against tech as cracks start to appear in the comeback
▼ + stars: | 2023-12-05 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

Cracks are beginning to appear in the tech-heavy Nasdaq 100 index . I have shown a chart of Invesco QQQ Trust (QQQ) which is an ETF that tracks the Nasdaq 100. Finding a stock to put on a bearish trade The stock I have picked for a bearish trade is Netflix (NFLX) . Starting Nov. 29, NFLX price candles are forming lower highs and lower lows, which is the easiest way to spot a downtrend. The trade structure I am using here is called a "bear put spread" also known as a "put debit spread".

Persons: NFLX, Nishant Pant Organizations: Netflix, Trade Management

☆ Betting on a market pullback with a bearish options trade on a stock showing signs of stalling
▼ + stars: | 2023-11-28 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

Finding a stock to trade "A rising tide lifts all boats" and vice-versa is my mantra here. The trade set-up With a bearish directional bias in place, all I need to do is find a suitable options structure to take a bearish trade. The trade structure I am using here is called a "bear put spread" also known as a "put debit spread". Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you. Since the width of our spread is $255 – $250 = $5, I can buy the spread for $2.50.

Persons: XLF, Nishant Pant Organizations: Visa, Mastercard

☆ A bearish options bet against this coffee stock showing some fatigue
▼ + stars: | 2023-11-21 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Starbucks (SBUX) looks like it could be an interesting stock to bet against. If it moves above 70 it means the stock is overbought, if it drops below 30 the stock is oversold. While being overbought doesn't guarantee a reversal, a drop below the 70 mark after being overbought often signals a potential pullback. DMI (Directional Movement Index): When the DI+ (green line) is above DI- (red line), the stock is in an uptrend. A bear put spread With a bearish directional bias in place, all I need to do is find a suitable options structure to take a bearish trade.

Persons: ”, SBUX Organizations: Starbucks

☆ How to bet on a comeback in energy stocks, which look primed for a bounce
▼ + stars: | 2023-11-14 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

DMI (Directional Movement Index): DMI is composed of 3 lines, DI+ (green line), DI- (red line) and ADX (blue line). When the DI- (red line) is above the DI+ (green line), it indicates a downtrend which is what XLE is experiencing at the moment. Note that both DI- and DI+ are changing direction which provides further confirmation that XLE is turning around. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: ”, XLE Organizations: SPDR Energy, Exxon Mobil, Natural Resources, Valero Locations: oversold, Chevron, XLE

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