There's more trouble ahead for Boeing shares as the stock now faces a key level, according to TradingAnalysis.com founder Todd Gordon.
On Tuesday, shares of Boeing dropped more than 1 percent after the company saw deliveries and orders on its 737 jets plummet in the first quarter.
The stock is down more than 17 percent from its high on March 1, and as it approaches its 200-day moving average, Gordon suggests a break below could open up the flood gates to more pain.
As a result, Gordon wants to short Boeing going into the company's earnings report on April 24. He says the stock could not only fall below its 200-day moving average, it could actually fall to around $340, which it hit in January.
Since he's not looking for "an all-out collapse" for shares of Boeing, Gordon says, he wants to play the stock using an options butterfly. In this case, he is using the combination of a put debit spread and a put credit spread.
Gordon is buying the April 26 weekly 360-strike put and selling the April 26 weekly 340-strike put, and then pairing that with the sale of the April 26 weekly 340-strike put and the purchase of the April 26 weekly 320-strike put. With this trade, Gordon is essentially betting that Boeing is headed to around the $340 level, at which he would make the most profit on his trade.
If Boeing shares were to close above $360 or below $320 on April 26 expiration, Gordon would lose a maximum of $279. But if Boeing were to close at $340 on April 26 expiration, then Gordon would make a maximum profit of $1,700.
Shares of Boeing were trading at $369.03 on Tuesday. The stock is down 16 percent from its 2019 high that it hit on March 1.
Trump hinted last week that a delay may be happening when he said the early March deadline was not a "magical date." The news also comes after sources familiar with the situation told CNBC last week that the United States and China are discussing a late March meeting between Trump and Chinese President Xi Jinping in Florida.
Sentiment was also lifted after General Electric announced it will sell its biopharmaceutical business to Danaher for $21.4 billion. News of the deal sent GE shares flying more than 8 percent. Danaher's stock jumped 7.8 percent.
Meanwhile, Barrick Gold launched a bid to acquire Newmont Mining for $7 billion in an all-stock deal. If approved, the deal would come after years of stagnant gold prices. The precious metal has been trading between $1,000 and $1,400 per ounce in recent years.
The major indexes kicked off the week after notching solid weekly gains. Last week, the Dow and Nasdaq posted their ninth straight weekly gain, while the S&P 500 recorded its eight one-week gain in nine.
—CNBC's Spriha Srivastava and Eustance Huang contributed to this report.
The United States exported a record amount of crude oil last week, as output from the nation's shale fields continues to surge.
The nation shipped out just over 3.6 million barrels a day in the week through Feb. 15, according to the U.S. Energy Information Administration. That easily topped the previous all-time high of 3.2 million bpd set in November.
Also last week, U.S. production hit a record 12 million bpd. The reading is subject to significant revision, but this is the first time EIA's weekly report has shown American output hitting the threshold. The weekly reading has been hovering at 11.9 million bpd for the last five weeks.
Much of that growing output is coming from U.S. shale fields, where drillers use advanced methods to squeeze crude oil and natural gas from rock formations. On Tuesday, EIA forecast output from seven major U.S. shale fields will rise by 84,000 bpd next month to 8.4 million bpd.
The U.S. notched the new export record despite China halting imports of American crude in recent months amid a trade dispute with Washington. China had emerged as the biggest buyer of U.S. oil prior to that.
Shipping data indicates that China was scheduled to receive its first cargoes of crude oil from the U.S. in months around Feb. 17, but it was not immediately clear if those shipments were baked into last week's figures.
To be sure, weekly U.S. exports rise and fall by wide margins from week to week.
The U.S. will start consistently exporting more crude oil and petroleum products than it imports at the end of next year, EIA recently forecast.
Semiconductors are surging this year. The SMH ETF that tracks the space is up 17 percent in 2019, with a number of names in the group soaring double digits.
Nvidia finds itself right in the middle of the pack, rallying 15 percent after a brutal end to 2018 cut the stock in half. The company is scheduled to report earnings after the bell Thursday, and while Nvidia issued a warning last month, the options market is still expecting a big move for the chip stock, said RiskReversal.com's Dan Nathan.
"The implied movement is pretty big, and [Nvidia] has been an aggressive mover on earnings news over the last few months," Nathan said Wednesday on CNBC's "Fast Money." "If you think back to Nov. 15, the company reported a very disappointing result, the stock was down 20 percent. Then, just last month, Jan. 25, the company pre-announced a negative quarter and the stock was down 15 percent," he added.
Nathan noted that the current implied move for Nvidia stock is roughly 7 percent in either direction.
But what is an implied move, and how do you calculate it?
The implied move refers to the price of the at-the-money put plus the price of the at-the-money call, divided by the strike price. This can help give investors clues as to where the options market expects a particular stock to trade by a given date.
"If I know that [Nvidia] is reporting on Thursday after the close, I can look at the at-the-money straddle, the weekly options. When the stock was trading at $155, the weekly 155-call was offered at $5.50, the weekly 155-put was offered at $5.50. Together, that makes $11," Nathan said.
"The negative trade talk headlines saw some safe-haven buying re-emerge," ANZ analysts said in a note, adding that sharp falls in equity markets had been supportive for gold.
Among other precious metals, palladium stood firm at $1,386 an ounce, silver was down 0.1 percent at $15.70 and platinum was 0.4 percent lower at $793.