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Today’s MRKT Call is Presented by Fidelity

Today at 1 pm, Guy Adami and Dan Nathan will go live on YouTube to discuss:

  • Bullish Trade on Oil & Uber

  • Tesla to Retest its Low?

  • Chart Check on S&P 500

  • Trade Management: Pfizer

If you enjoyed this episode, make sure to subscribe to the Risk Reversal YouTube Channel:



Bullish US Oil ETF (USO) Trade Idea ~$75.30


USO ($75.30) Buy June 76/83 Call Spread for ~$2

  • Buy to open 1 June 76 call for ~$2.50

  • Sell to open 1 June 83 call at ~$0.50

Break-Even on June expiration:

  • Profits of up to 5 between 78 and 83 with a max gain of 5 at 83 or higher

  • Losses of up to 2 between 76 and 78 with a max loss below 76

Trade Rationale and Management:

  • This trade idea risks 2.6% of the ETF price, breakeven up ~3.5% and has a max potential gain of 5 or ~6.5% if the ETF is up ~10% in a month and half

  • As always with long premium directional trades, I will look to take half off if a double and look to cut the position entirely if the trade is worth about 50% of the original premium paid for the trade


Bearish Tesla (TSLA) Trade ~$180


Buy May/July 170 Put Calendar for ~$7.75

  • Sell to open 1 May 170 put at ~$1.75

  • Buy to open 1 July 170 put for ~$9.50

Break-Even on May Expiration:

  • If the stock is 170 or higher the May put expires worthless and you are left owning July 170 put for $8.25

  • The max risk is the $1 premium paid.

Trade Rationale:

  • Financing owning the longer-dated put


Uber vs. 100 Shares Long At ~$71


Buy June 80/65 Collar for ~$0.20 vs. Long 100 Shares at $71

  • Sell to open 1 June 80 call at ~$1.70

  • Buy to open 1 June 65 put for ~$1.90

Break-even on June expiration:

  • Profits of up to 9 between 71 and 80 with max gain above 80, stock called away up 11%

  • Losses of up to 6 between 71 and 65, stock protected below 65 down 8.5%

Trade Rationale

  • A long holder would do this if they are more concerned with extreme downside than the possibility of extreme upside in the next month and half post earnings


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