"Investors are struggling with higher than expected inflation and the implied need for the Federal Reserve to hike more, which could risk a recession. Long-term rates declined because of the recession risk, yet inflation is higher and rates have not moved up to reflect that. Banks are a prime example of this point," says Chuck Lieberman. Next, Tom White discusses an example covered call option trade with a neutral to bullish direction on JPM and an example put vertical option trade with a neutral to bullish direction on GS.