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☆ A lower-risk and lower-cost way to play increased electricity usage around the country
▼ + stars: | 2024-06-17 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

I'll review a way to play increased electricity use as electric vehicle adoption progresses around the country. Eversource Energy (ES) , a public utility holding company, operates in the electric distribution, electric transmission, natural gas distribution, and water distribution segments. It is involved in transmitting and distributing electricity, solar power facilities, and natural gas distribution. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts. ES 1Y mountain Eversource Energy, 1-year The stock hasn't traded particularly well recently, but that may present an opportunity.

Persons: I've Organizations: California Air Resources Board, Nvidia, Eversource Energy, Utilities, Energy Locations: California, United States, Los Angeles, Connecticut , Massachusetts, New Hampshire, Springfield , Massachusetts

☆ A conservative way to get long legacy auto stocks as they rebound from EV troubles
▼ + stars: | 2024-06-13 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

Geologist M. King Hubbert developed the "peak oil" theory in the 1950s. He famously projected that U.S. oil production would peak between 1965 and 1970, which seemed accurate as U.S. oil production did peak around 1970. Hubbert's prediction about the U.S. oil production peak was largely accurate for conventional oil production. Still, global oil production has not followed Hubbert's anticipated timeline due to discoveries, technological advancements, and new extraction techniques. Hydraulic fracturing (fracking) and deep-water drilling have significantly increased oil production beyond what was initially thought possible.

Persons: M, King Hubbert, Hubbert, Hubbert's, I've, Ford Organizations: Federal Electric Vehicle, ICE, GM, Ford, Trade Locations: United States, California

☆ A cautious way to make a bullish bet on one of the major stocks still left to report earnings
▼ + stars: | 2024-06-06 | by ( Michael Khouw | ) www.cnbc.com time to read: +5 min

While most of the S & P 500 has reported first quarter earnings, three notable names — where the options trade quite actively — have yet to report. Signs of improvement in this area showed up with their last earnings report on March 11th. The stock was flat when they reported earnings in June of 2023, but it fell double digits when they reported in September and December last year. ORCL YTD mountain Oracle, Year-to-date A more cautious approach to a bullish bet on Oracle could be to buy call options. One could offset a portion of this cost (and the volatility crush that generally follows an earnings report) by selling a June 14th weekly $130 call.

Persons: aren't Organizations: Oracle, Oracle Corp, Broadcom Inc, Adobe Inc, Broadcom, Adobe, Gamestop, Microsoft, Amazon, AWS, Morningstar

☆ How Roaring Kitty's wealth went from $53,000 to nearly $300 million — and could one day top $1 billion
▼ + stars: | 2024-06-04 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

Pavlo Gonchar | Lightrocket | Getty ImagesAlmost five years ago, GameStop champion Keith Gill revealed a $53,000 bet in his favorite video game retailer. By the end of the jaw-dropping episode in April 2021, Gill exercised his call options position to have 200,000 common shares. Put another way: If the stock closes above $20 that day, Gill could exercise the options at $20 apiece, leaving him owning an additional 12 million shares. A total of 17 million shares would make him the fourth-biggest shareholder in GameStop, coming in behind Vanguard, BlackRock and Ryan Cohen's RC Ventures, according to FactSet. Zoom In Icon Arrows pointing outwardsThe notional value, if exercised, would be $240 million worth of stock bought at $20.

Persons: Keith Gill, Pavlo Gonchar, Gill, Michael Khouw, Khouw, Morgan Stanley's, Ryan Cohen's Organizations: GameStop, Lightrocket, Street Journal, CNBC, Vanguard, BlackRock, Ryan Cohen's RC Ventures

☆ CNBC Daily Open: Opec extends cuts, Nvidia showcases new chip
▼ + stars: | 2024-06-03 | by ( Abid Ali | ) www.cnbc.com time to read: +3 min

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. OPEC+ extends cutsOPEC and it allies agreed to extend official crude production cuts into 2025 amid lackluster demand. Saudi Arabia's energy minister Prince Abdulaziz bin Salman said OPEC+ wants concrete rate cuts before factoring in the potential impact on energy demand. New AI chip RubinNvidia unveiled its next generation artificial intelligence chip, Rubin, a mere three months after launching its Blackwell model.

Persons: Prince Abdulaziz bin Salman, Rubin, Blackwell, Dow, UnitedHealth, Bill Ackman, It's, Michael Khouw Organizations: CNBC, Saudi Aramco, Rubin Nvidia, AMD, Intel, Microsoft, Google, Dow Jones, Federal, Dow, Nasdaq, Nvidia, Tesla, Pershing, Moderna, Drug Administration, GSK, Pfizer Locations: OPEC, Saudi Arabia, Russia, Saudi, U.S, Moderna

☆ A way to profit from a negative reversal in Chipotle if the consumer continues to weaken
▼ + stars: | 2024-06-03 | by ( Michael Khouw | ) www.cnbc.com time to read: +5 min

Investors may not have sufficiently accounted for the impact of stretched consumer finances on the discretionary sector. We'll review the dichotomy going on in the consumer discretionary sector and give a bearish trade on an outperforming stock once thought to be immune from some of the pressures. To some extent, the haves and have-nots divide explains the difference between the consumer discretionary stocks that have outperformed versus underperformed this year. Horton, YTD However, two industry groups within the consumer discretionary sector have not followed this pattern to the same degree. The trade: Chipotle The best-performing restaurant in the consumer discretionary sector so far this year is Chipotle Mexican Grill Inc. (CMG) up a market-crushing 36.8%.

Persons: Roland Garros, Ralph Lauren, Hermes, Versace, Prada, Calvin Klein, Tommy Hilfiger, Van Heusen, Horton, TOL, D.R, Tesla, Darden, YTD, Chipotle Organizations: Monaco, PVH Corp, IZOD, Carnival Corp, CCL, GM, Grill Inc, Darden, Starbucks Locations: Royal Caribbean, Horton

☆ What options traders mean when they say they are 'buying volatility'
▼ + stars: | 2024-05-31 | by ( Michael Khouw | ) www.cnbc.com time to read: +7 min

Institutional options traders frequently refer to "buying" or "selling" volatility, but what does this mean? These allow investors to trade future realized volatility against current implied volatility. A buyer of a variance swap pays the "implied volatility" - consider this to be the market's current expectation for future volatility over some predetermined period, in return for receiving the "realized volatility". A variance swap buyer will profit if realized volatility exceeds implied volatility, and a seller will profit if implied volatility exceeds realized. The first is that a VIX future is not as reactive to changes in the VIX Index as one might expect.

Persons: Goldman Sachs, Goldman, I'm, I've Organizations: Snowflake Inc, Cloud Locations: Snowflake, The Bozeman , Montana, San Francisco

☆ Options Action: What to expect from Dell next week
▼ + stars: | 2024-05-24 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOptions Action: What to expect from Dell next weekOptions traders Carter Worth and Mike Khouw, join 'Options Action' to give the implied moves on several stocks reporting next week.

Persons: Carter Worth, Mike Khouw Organizations: Dell

☆ Investing alternatives to chasing Nvidia's stock using options after its blockbuster report
▼ + stars: | 2024-05-23 | by ( Michael Khouw | ) www.cnbc.com time to read: +5 min

Traditionally, value investing and growth investing are considered two distinct investment strategies. Value investors look for stocks they believe the market has undervalued and may be trading for less than their "intrinsic" value. Value investors often employ "bottom-up" investing, which focuses on individual companies rather than the overall market or industry. Growth investing focuses on companies expected to grow at an above-average rate compared to other companies. Is there a way to introduce a margin of safety to a growth stock using options?

Persons: Dan Ives, Jensen Huang, Vince Lombardi Organizations: Nvidia, Intel Locations: Wedbush

☆ A 'strangle' options trade on a top cybersecurity stock reporting after the bell
▼ + stars: | 2024-05-20 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

Cybersecurity stock Palo Alto Networks (PANW) will be reporting Monday after the close. The following table includes ten stocks reporting earnings this week where the options market is implying moves of 7% or greater. Palo Alto Networks was hard hit after they reported earnings on February 20th. PANW YTD mountain Palo Alto Networks, YTD Palo Alto Networks is a global network security solutions provider. Palo Alto has recovered roughly half the decline the stock suffered following its earnings release last quarter.

Persons: Nikesh Arora, Zscaler, PANW Organizations: Palo Alto Networks, Networks, Palo Locations: Palo, Palo Alto

☆ Two trades to generate some income from outperforming retailers Walmart and Amazon
▼ + stars: | 2024-05-17 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

As we think about the multiple premium afforded to online retailers such as Amazon, Walmart's global eCommerce sales rose 21%. Walmart shares, at 26 times earnings, are value-priced relative to Costco's 46 times earnings. Amazon trade Amazon (AMZN) is growing topline considerably faster. Amazon revenues overtook Costco in 2016, and 2025 could be the first year that Amazon revenues exceed Walmart's. If growth is what you're after buy Amazon.

Persons: eCommerce Organizations: Walmart, Costco, Sam's

☆ Options Action: Nvidia earnings on deck
▼ + stars: | 2024-05-17 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOptions Action: Nvidia earnings on deckCarter Worth and Mike Khouw join 'Fast Money' with the latest Nvidia trades ahead of earnings.

Persons: Carter Worth, Mike Khouw Organizations: Nvidia Locations: Carter

☆ How to generate some return on Costco after a nice rally, without having to sell the stake
▼ + stars: | 2024-05-13 | by ( Michael Khouw | ) www.cnbc.com time to read: +8 min

How I think about Jim Simons' legacy, and a trade on one of the most successful retailers, Costco, follows. First, a contrarian view in Costco: Costco (COST) is one of the best performing retailers over the past year. Last week, Costco released their four-week retail sales results for the period between Monday, April 8th and Sunday, May 5th. There is only one thing I don't like about Costco, the price. The weak form suggests past market prices, which are generally observable, are fully reflected in stock prices.

Persons: Jim Simons, that's, Jim, James Surowiecki, Francis Galton, Eugene Fama Organizations: Costco, Fund Locations: Costco, U.S, New York, Surowiecki

☆ A port-in-the-storm trade if the consumer continues to get pinched by rates and inflation
▼ + stars: | 2024-05-09 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

The consumer, making up 70% of the U.S. economy, is being hit by higher interest rates and sticky inflation. Consumer spending, also known as personal consumption expenditures (PCE), typically represents about two-thirds of the U.S. GDP. While that is attributed to easing consumer demand for EVs, dealer inventories of ICE vehicles have recovered significantly since the pandemic. Away from consumer discretionary and towards consumer staples. The Consumer Staples Select Sector ETF (XLP) is trading 21 times trailing earnings and about 19.6 times forward earnings estimates versus 25.7 times trailing and 22.83 times forward for the Consumer Discretionary Select Sector Index.

Persons: there's, Tesla, Power Organizations: Starbucks, Investors, PPI, CPI, Federal Locations: U.S

☆ A Disney earnings trade more likely to make money than just buying call options outright
▼ + stars: | 2024-05-06 | by ( Michael Khouw | ) www.cnbc.com time to read: +3 min

We'll take a deeper dive into what options traders are betting on in Disney and propose an alternative with a higher probability for a profit. Disney (DIS) traded above average call volume on Friday, with calls outpacing puts by nearly two-to-one. While that is higher than the long-term average earnings-related move, Disney has been quite volatile in recent quarters. Buyers of those calls are betting Disney will rally at least 6.75% by the end of the week. An investor who is willing to take more risk in exchange for a higher probability of profit might instead consider a diagonal call spread.

Persons: outpacing, Julie Biel Organizations: Disney, DIS, week's Locations: Disney

☆ How to generate some return in beaten-down Starbucks using options following its earnings rout
▼ + stars: | 2024-05-02 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

Starbucks (SBUX) on Wednesday traded nearly seven times the 20-day average equity volume and 10 times the average daily options volume as the shares fell nearly 16%. It was the fourth-worst trading day for Starbucks since the company's IPO in 1992. And with respect to China specifically, Starbucks said the recovery there has been "choppy" with intense price wars. Starbucks reported $8.56 billion in second-quarter revenue, which represents a year-on-year decline of 1.8%. Don't try to catch a falling knife This presents a significant challenge for an investor in Starbucks stock.

Persons: Clinton, James Carville, SBUX Organizations: Wednesday, Starbucks Locations: China

☆ How to back a lagging lithium miner and still generate income using options
▼ + stars: | 2024-04-29 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

Today, I'm focusing my attention on minerals used in modern technology and presenting a way to use options to play a lithium miner. The strategy gives a lower-risk way to get somewhat long this beaten-up miner without going all-in, and generating some income in the process. Lithium is used, as the name suggests, in lithium-ion batteries which are crucial for portable electronics, energy storage, and electric vehicles. Combined with understandably elevated options premiums this could set as a spot to begin entering a partial position, with some options overlays. Or, if the stock falls, would add to the long position at the short-put strike.

Persons: Tesla, Elon Musk, Albemarle Organizations: Albemarle Corporation, Volkswagen, BMW, Mercedes, Hyundai, GM, Ford, Toyota, Kia, Renault, Nissan Locations: Charlotte , NC, U.S, Albemarle, ALB

☆ Options Action: Traders bullish on Amazon ahead of earnings
▼ + stars: | 2024-04-29 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOptions Action: Traders bullish on Amazon ahead of earningsOptions trader Mike Khouw joins CNBC’s Melissa Lee and the Options Action traders to talk Amazon ahead of earnings.

Persons: Mike Khouw, Melissa Lee Organizations: Options

☆ Using options to trade this oil giant after its earnings came out this week
▼ + stars: | 2024-04-25 | by ( Michael Khouw | ) www.cnbc.com time to read: +3 min

Halliburton reported better-than-expected earnings this week, buoyed by a surprisingly strong performance from its North American division — which offset flat-to declining revenues from other geographic segments. The offsetting strength or weakness of various business segments and geographic exposures, particularly for a mature business such as oil services, suggests the range-bound price action that Halliburton's share price has experienced for the past two years could continue. Consequently, if one owns Halliburton shares, consider writing upside calls, particularly now that the company has released earnings. If shares decline and one is assigned the effective purchase price would be $36.42, at which point one could then look to sell upside calls. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Halliburton, overwriting Organizations: North American, Halliburton Locations: North America

☆ Tesla could be volatile this week on earnings. Using options to mitigate the risk
▼ + stars: | 2024-04-22 | by ( Michael Khouw | ) www.cnbc.com time to read: +5 min

I am a big fan of Tesla products and the company, but we do not currently own the stock. Since hitting its all-time high on Nov. 4, Tesla shares are the worst-performing member of the "Magnificent Seven". With prices running from about $40,000 for a single-motor version to $70,000 for a tri-motor variant, the Cybertruck's specifications were remarkable. China represents the largest market for EVs at the moment, and BYD is leading Tesla there. Among U.S. manufacturers, Tesla, because it eschews the conventional dealer model, has excellent flexibility on pricing, which they adjust dynamically.

Persons: Tesla, FSD, Warren Buffett's, Berkshire Hathaway, Charlie Munger, Elon Musk, General Motors, — Organizations: Nvidia, Elon, EVs, Ford, Toyota, South, U.S, Ford Motor, General, Tesla Locations: U.S, China, Tesla, Europe

☆ Options prices are rising as the market is on edge. How to use this to your advantage
▼ + stars: | 2024-04-15 | by ( Michael Khouw | ) www.cnbc.com time to read: +6 min

Options premiums are rising and we'll discuss how to take advantage of that by generating income through a covered call options strategy. First the consumer price index inflation data came in hotter than expected on Wednesday. The expectation had been that the pace of inflation – once those year-over-year price increases were in place — would slow in March. Since then, the "average" level of the VIX Index is 19.53. Holders could therefore look to options to potentially provide some yield if they are expecting less capital appreciation.

Persons: Warren Buffett, 28th's, Buffett Locations: Europe, Iran, Israel, Lebanon, United States, Domino's

☆ Regional banks are struggling. Here's why and how to profit from the trend with options
▼ + stars: | 2024-04-11 | by ( Michael Khouw | ) www.cnbc.com time to read: +6 min

Regional banks are taking hits this week and investors are increasing their bearish bets on the sector. Higher rates impact Higher interest rates increase the cost of borrowing money. Higher interest rates can also reduce demand for loans, as borrowing becomes more expensive for consumers and businesses. This can deteriorate the asset quality of regional banks, increasing the need for loan loss provisions, which are expenses set aside to cover potential loan losses. Rising interest rates and inflation can pressure banks' capital adequacy ratios, a measure of a bank's capital relative to its risks.

Persons: Banks Organizations: Regional Banking, Banks

☆ Options Traders launch bearish bets on regional banks
▼ + stars: | 2024-04-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOptions Traders launch bearish bets on regional banksOptions Action traders talk big bank earnings and Mike Khouw, Optimize Advisors president, gives his playbook for the sector.

Persons: Mike Khouw

☆ This oil refiner could get a boost as summer approaches. Using options to capitalize on the gains
▼ + stars: | 2024-04-08 | by ( Michael Khouw | ) www.cnbc.com time to read: +4 min

The move higher for energy stocks comes as West Texas Intermediate crude oil approaches the mid-2022 highs of $88.31 per barrel. Theoretically, one can make bullish bets on oil using an ETF, such as the United States Oil Fund (USO) . However, I would caution against using this as an investment vehicle to make a long-term bullish bet on oil. SPR decline As the chart below illustrates, the country's Strategic Petroleum Reserve declined sharply in the lead-up to the 2022 midterm elections – keeping oil prices in check. The total cost of the spread risks just under 4.4% of the current stock price.

Persons: It's, Brent, Biden, Kinder Morgan Organizations: West Texas, United States Oil Fund, USO, country's Strategic Petroleum Reserve, Halliburton, Schlumberger, Valero, Marathon Petroleum, Marathon, MPC Locations: Marathon

☆ Gold could be implying inflation remains sticky. How to play it with options
▼ + stars: | 2024-04-04 | by ( Michael Khouw | ) www.cnbc.com time to read: +2 min

The Federal Reserve, as always, is trying to strike a balance between conquering inflation and navigating the soft-landing. Of course, if higher rates also successfully curb inflation then gold, as an inflation hedge, shines less brightly. GLD YTD mountain SPDR Gold Shares GLD But gold is shining brightly. So gold markets are implying that we could get some rate cuts, inflation will be sticky, or both. This provides continued exposure to the upside if the gold rally continues, while locking a modest profit as well.

Organizations: Federal Reserve, VanEck Gold Miners

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