Latest news with #CNBCPro
CNBC
3 days ago
- Business
- CNBC
A simple options strategy that defines investor risk as the S&P 500 reaches new heights
Markets remain in melt-up mode as shorts run for cover. U.S. equities opened higher once again on Friday morning after the S & P 500 and Nasdaq 100 both notched another closing all-time high on Thursday. That is the S & P 500's ninth record close of the year. I believe the S & P 500 will continue to move higher this summer, but I want to use options on SPDR S & P 500 ETF Trust (SPY) to define risk in the event the underinvested and shorts take a break from chasing stocks higher. Another catalyst that has been added into the bull case is the continued lowering inflationary data (or lack of inflation appearing from trade tariffs) coupled with robust initial Q2 earnings reports. Although it's early in the earnings season as the big banks just kicked off the reporting period this week, 51 of the 55 companies that have reported earnings since the start of season this week have beaten consensus analyst EPS estimates. That's a beat rate of 93%, well above the 20-year average beat rate of 63%, Bespoke Investment Group data shows. Optimism abound, but I believe it is also prudent to define risk when investors experience a severe sentiment shift as markets have endured since April. As many strategists tripped over themselves to lower their 2025 S & P 500 price targets subsequent the "liberation day" initial trade tariff sell-off, that highlighted a buying opportunity as the VIX vaulted over 60. Now that these same analysts are readjusting their S & P 500 price targets significantly higher, I have short-term caution on how much more room this melt up may have. However, there is a record amount of money sitting in cash potentially looking to get back in the equity markets and moreover, that is why I prefer to use options to define that risk and exposure. Normally, I would like to utilize a call spread to reduce cost into upside participation. Due to the parabolic move that we have witnessed since the S & P 500 kissed 4,800 in April, I do not want to limit my upside here and I am comfortable risking the (expensive) amount I am paying for this upside call I am buying. Owning the call is more strategic than owning SPY at these levels. I am also using this as a stock replacement strategy as I am closing some of my long SPY position. Buying a SPY call option Bought the Aug. 29 SPY $630 call for $12.90 This call option is a debit of $1,290 This trade was executed when SPY was roughly trading $629 DISCLOSURES: Kilburg is long these $630 calls, long SPY All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . 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. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
5 days ago
- Business
- CNBC
Ether is starting to outperform bitcoin – and further gains could be ahead for the crypto, charts show
Ether continues to demonstrate notable strength, both on an absolute basis and relative to bitcoin , which suggests that its recent up-move could kickstart further gains. First, on this daily chart, it's clear that ETH finally has broken out of a bullish inverse head-and-shoulders pattern, a technical formation that has been under construction for most of 2025. By continuing to trade above the $2,870-breakout zone, the measured-move upside objective would be all the way up at $4,375. Momentum is also supportive of the move. ETH's 14-day Relative Strength Index (RSI) now has spiked from the low 30's to the mid-70s in just four weeks. That's quite a move for the indicator. For context, the RSI surged to nearly 90 in mid-May before cooling off. This suggests that while the current rally is powerful, it will need a breather again at some point soon. Nevertheless, as long as ether continues to hold above the neckline of its inverse head-and-shoulders pattern, the broader bullish case remains viable. Further, eventually achieving the $4,375-target also would put ether above its December 2023 highs and back within striking distance of its all-time highs from the 2021 cycle. In doing so, ETH would also be completing what could be a much, much larger, multi-year bullish base, which is best viewed on this monthly log chart. Thus, this longer-term pattern implies that the breakout discussed above may, in fact, be more than just a short-term trading event. Needless to say, a lot hinges on ether's ability to maintain its recent strength. Not only has ether been strong on its own, but it has also begun to outperform bitcoin. Since bottoming earlier this year, ETH has done materially better than BTC: From the April lows, bitcoin is up 60%, while ether has shot higher by over 130%. That relative strength is important, particularly for traders and investors seeking rotation opportunities between the two largest cryptocurrencies. The key question is whether this bounce in the ETH/BTC ratio now marks the beginning of a new cycle of ether outperformance. If it does, ether could not only reclaim its leadership role in the crypto space but also reignite broader interest across the alt-coin landscape. All eyes remain on ETH to see if it can continue to build on this momentum — and if so, the next leg higher may just be getting started. The next step: hold this breakout on the ensuing pullback, whenever it starts. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . 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. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
02-07-2025
- Business
- CNBC
This sub-$10 pharma stock is attempting a bullish breakout, according to the charts
Healthcare shares performed well on Tuesday, and one notable mover was Viatris (VTRS) . The stock popped up in a routine review of S & P 500 components, where we constantly look for potential basing formations or bullish patterns — whether near highs or attempting to bottom after long periods of underperformance. VTRS clearly falls into the latter category. As we can see, the stock is attempting to break out of two overlapping inverse head-and-shoulders patterns. A decisive move through the $9.50 area would trigger the larger formation, setting up a potential target near $12.30. A logical stop loss would be just below 8.65, near the right shoulder of the smaller pattern and also near the rising 50-day moving average. Now, it's not as if VTRS has sat out the epic market-wide snapback over the past few months—far from it. The stock is already up 38% from its April low, outperforming the S & P 500 and many of its components over that time frame. Still, that recovery pales in comparison to the preceding, nearly 50% decline it suffered from late 2024 through April'25. Looking back at its erratic trading since 2022, a few things stand out. First, the stock has gone through a series of sharp multi-month declines, followed by powerful snapback rallies. And notably, those rallies have consistently produced larger percentage gains than the preceding drawdowns. Another clear takeaway from the chart: in three of the last four rallies, the stock went on to make a higher high relative to the most recent peak. That's the blueprint VTRS bulls will be watching for again now. Thus, if that pattern is to repeat, VTRS likely has more upside ahead. Finally, zooming way out to include price action over the past two decades, it's clear that VTRS remains well below its 2015 highs—but the current comeback is starting to resemble a prior major recovery. In both 2008 and now, 2025, the stock undercut clear multi-year support levels during broad market crashes, only to reverse sharply higher and reclaim those same levels. A few months later in early 2009, the stock went on to break through a steep downtrend line that had been in place for two years. That breakout marked a turning point, triggering an even stronger recovery that extended for several years. Currently, VTRS soon could be confronting an even longer-term downtrend line, drawn from the 2015 peak. From a technical perspective, the next obvious step would be to break above that line. If it can do so —especially while taking advantage of the bullish chart patterns mentioned earlier—then the tide may finally turn. Momentum, which has been negative for years, could shift toward a more constructive path going forward. First step – break out from the small bullish formations. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . 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. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
30-06-2025
- Business
- CNBC
These Nasdaq stocks have led the bounce since 'liberation day' back to all-time highs
In the market's stunning recovery, some stocks are more to thank than others. Wall Street sees a handful of the best performers having more room to run. The S & P 500 notched an all-time high on Friday, the latest milestone in the equity comeback after President Donald Trump 's tariff policy sent markets into a tailspin. The Nasdaq Composite has surged with tech stocks leading the recovery, driving the index more than 15% higher since Trump first announced the levy plan on April 2, the day he dubbed "liberation day." CNBC Pro screened for Nasdaq members with market caps of at least $5 billion that have led the market's rebound. From there, we looked for names that have buy ratings from at least 65% of analysts and have average price targets implying upside of 15% or more. All of the stocks on this list are covered by at least 15 Wall Street analysts. Data is current as of midday Friday and is from FactSet. Here are the names that made the list: BridgeBio Pharma has surged more than 30% since April 2, bringing its year-to-date gain above 61%. Earlier this month, the U.S. Food and Drug Administration granted a BridgeBio subsidiary orphan drug status for infigratinib, a treatment for a form of dwarfism known as hypochondroplasia. Four out of five analysts have buy ratings on the stock, according to FactSet. The typical price target suggests shares can jump more than 34%. BBIO 3M mountain BridgeBio, 3-month chart AppLovin is one of the better-known names of the list. Shares have rallied more than 19% since April and are now up more than 6% in 2025. A chunk of that gain came after the company last month reported better earnings than analysts expected. About 2 out of every 3 analysts have buy ratings on the stock. Wall Street sees much more upside ahead, with an average price target implying the stock can soar more than 41%.
CNBC
22-06-2025
- Business
- CNBC
5 income-producing stocks to buy for the second half
Uncertainty in the stock market and in the economy may have investors seeking stability in companies that pay regular dividends. Those equities are often seen as a hedge against volatility due to their their reliable income. Stocks fell early last week on concern over the Israel-Iran conflict, but closed marginally higher in the latest five days after the Federal Reserve opted to keep rates unchanged at its June meeting. There could be more volatility ahead after the U.S. bombed three nuclear sites in Iran over the weekend. But for all the attractions of income-producing stocks, not all dividend payers are created equal. To find stocks that may be poised to outperform in the second half, CNBC Pro screened for those in the ProShares S & P 500 Dividend Aristocrats ETF that are rated buy by at least 51% of the analysts covering the stock, and that have at least 10% upside to the average price target, according to FactSet. They also had to have a dividend yield of 1.5% or more, above the S & P 500 average of 1.29%, and covered by at least 10 analysts. Drugmaker AbbVie has a dividend yield of 3.5%, and 15% upside to analysts' consensus price target. The stock is up about 4% year to date. The $328-billion market cap company said earlier this week that its blood cancer treatment, Venclexta, failed to significantly improve overall survival rates in a recent late-stage trial . However, it also said Wednesday its migraine drug, Qulipta, was found in a late stage trial to be superior to a widely-used generic treatment. In late April, AbbVie reported a first-quarter earnings and revenue beat and raised its full-year earnings-per-share guidance. The North Chicago-based company is also investing at least $10 billion in manufacturing in the United States, including four new plants. While its once blockbuster anti-inflammatory drug Humira has seen declining sales since it lost patent protection in 2023, AbbVie has two new immunology treatments, Skyrizi and Rinvoq. Also on the list is Coca-Cola , which has 14% upside to the average analyst's price target and a 2.9% dividend yield. The soft drink giant also topped quarterly earnings expectations in late April and largely reaffirmed its full-year outlook. It called the effect of higher tariffs "manageable," but expects some short-term choppiness tied to trade conflicts. "I think there's going to be some disruption around a number of categories and industries around us, which will have some effect with the consumers," Coke CEO James Quincey said on the company's conference call, "You can see the consumer sentiment has been impacted, [but] the consumer spending ... still seems robust." Shares have risen nearly 11% so far this year. Lowe's is another company that pays an above-average dividend and is sticking with its full-year forecast in the face of tariffs. Investments in stores, customer service and technology have helped the home-improvement retailer navigate "near-term uncertainty and housing market headwinds," CEO Marvin Ellison said in the company's earnings release in May. The stock has 25% upside to the average analyst price target and a 2.3% dividend yield. It has lost 14 % year to date. — CNBC's Amelia Lucas and Melissa Repko contributed reporting.
