you know i've been to greece, but when i want to speak greek, i come here it's all greek to me the guys are are getting ready behind me. here's what's coming up in the show >> my fellow americans, our long national nightmare is over >> that's what tesla investors are hoping will happen but there's something in the chart that suggests there's more pain to come we'll break it down. plus, gold is getting crushed. but there's another precious metal that looks even worse. we'll give you set up. and the options market is

expecting one of these names to break out when it reports earnings next week we'll tell you which one the action begins right now. >> it has been a wild week for technology stocks, the nasdaq 100 alternating each day between 1% sell offs and 1% rallies. only to end the week higher by a hair could this be painting the picture for more volatility to come is that good get in the money mi mike generally speaking when volatility is very low, that's a good sign for the market when you see the vicks, the next three days are prosecutor tpret. we've had this situation where a lot of stocks didn't want to move now, we have evidence that they can.

>> it changes the game and mathematics. what do you pay for stocks that changed your mathematics here. the math gets even tougher when in particular, with with technology stocks, a lot of them, their earnings are so far out in the future. raises so much more uncertainty about whether or not you're going get paid >> that's the long-term premise for, but nothing has changed and growth rates of these companies. i think it's more, i think so the question is, is the selling because of that, or is it because maybe it was a crowded situation and complacent situation.

you have that catalyst and every bank is saying you know what, no more free money. and might as well take some off the table. >> before the central banks starting speaking, they started cracking it was on the friday where there was a short report on nvidia the banks hadn't firmed up >> which brings up the point that central banks don't control everything in the economy. don't control everything with respect to asset prices. we've been in one. we've seen increased amounts of lev rang oxygen corporate balance sheets that just increases the risk that's a fact. why don't you break down the charts first when it comes to technology >> let's do it the qs it's not a pure thing. there are things like walgreens, boot, kraft, hines, comcast. but it's as good a proxy as any for leading large cap technology stocks so i thought i'd start out here with a long-term chart just sort

of at or near the lows in the '09 crisis and where we are now. what we have is clear. you've had this massive outperformance, almost three ba bagger over the market now, i want to remove the s&p and just look at the chart of the qqq on the same time frame so, here, what we have is the chart we're looking at with its high low close action. and what we know is the following. if i simply put in a channel and thing about this, is i didn't manipulate late it these are two parallel lines put it by a program or computer. what history tells us if you overshoot the top like this, that you often will check back what's happening is the check back is underway we're down some 5% from the peak, but not back to the

channel here let's drill down more and get it to a tighter pat esh here is the day-to-day pattern we're goeng to get down to the trend line one thing that you could put in is the following you can call this a minor, head and shoulders tops and it is that has implications for lower prices let's put it all together. we have our trend line our miners head and shoulder top. again, as a minimum, i think we're going to come back to trend. sort of what is actually more likely, because i don't think you're going to hold that is the following that we get back to the 100 day moving average which imply another sort of five and that would represent a peak to trough decline of about 10%. call it a dip.

sell off, correction, pull back. but it's normal. and it would be welcomed >> thank you, what's yours >> i'm looking out to september. you can buy the 138 put spread, spend $3.85. sell the 130 puts for 1.60 spending 2.25 for that spread. one of the points i would make quick ly is you know, everybody watching most likely and everybody on this desk is probably net long equities, so even if you expressed concern about stocks, not saying make it bearish. this is playing for the kind of pullback we're seeing here that's all we see. >> we know up 32%. after a 32% 12-month move, are we going to escape with a 4 to 5% dip

probably not i don't think it's enough to correct an uncorrected situation. >> and to put this trade on if you have a long equity portfolio, i don't think there's anything wrong with that when you can, not when you have to and in this case, if carter, carter's right which i could see that scenario happening down 10% it's not unusual it's unusual for us in this market but not in normal markets. >> mauving on to commodities crush. metals seeing a meltdown today jack jackie >> and silver getting crushed. gold falling 1% and silver dropping more than 3%. helping the two commodities close their worst week in two months gold now trading at the lowest level since march and close to the key 1200 level silver is now at its lowest level in more than a year and

those moves have the options market in a frenzy both the gold etf and silver saw two times their average daily option volume today. despite the sell off, traders appear to be buying. at least in the short-term most active gld trades were buyers of the july 116 calls active calls were buyers of the july expiration 14 and 15 straight calls so some traders are betting on a bit of a relief rally here back to you. >> thanks. what do you make of the move sns zpl they're extraordinary. particularly in silver overnight, you had a flash crash, this massive drop and everybody thought it was because of a fat finger, but over the course of the day, when markets opened up, you started seeing silver dive over so what's going on with silver the reason why it's getting hurt more than gold is because it's twofold. it has industrial uses if we have a flattish economy, you're not going to use the industrial production is not going to be as much. secondarily, it has that inflation hedge element to it,

but we're not seeing any inflation despite what the central bankers think they're seeing, we're not see iing that so there's not a lot of reason to own silver in this environment and it's going to get hurt >> why would it come back today? >> because it wasn't really any sign of wage growth or exploding inflation at all but it would suggest the economy is not weakening yes, but doesn't necessarily suggest the economy is ripping into the upside. >> jackie touched on this. we did see above options activity one of the interesting things happens in commodities if you see this technical weakness, it's a dangerous thing to sit there and pick bottoms. catch the falling 950. but with commodities, when they start going lower like this, unlike with stocks where options premiums shoot up, the options have been getting cheaper at the underlying commodities have, so if any of you are out there, i'm not, but if you are, you try to

make a bullish bet, you're better off buying calls here than the underlying in my view >> this is happening with the dollar it usually -- and that's not always the case. through six months, they can be opposite long-term, yes, a perfect relationship basically, but for this kind of weakness with the dollar, it's pernicious and suggests maybe something has changed. i liked fwold. that's going ton ab issue! we have much more options action still ahead. here's what's coming up on the rest of the show >> how would you like to buy shares of jpmorgan for just over a dollar >> i'd buy that for a dollar >> we'll show you how. plus, calling all options action

fans reach in your pocket, grab your phone and tweet us your question at options action. if it's nice, we'll answer it on air. when options action returns. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade a number of big bapgs kicking off earnings season and we have a look at what to expect >> that's right. we have the first round of big bank earnings coming out next week with reports from jpmorgan, wells fargo, citigroup and pnc on friday. the financials is the second best performing sector of the last three months up more than 6%, but the options market is

implying some mod moves, at least compared to previous quarters traders anticipating a 2.5% move higher or lower from jpmorgan. that's a hair shy of its average 2.7% move. wells fargo and citigroup where expected to see a 2.3% rise or decline. wells fargo sees a 3.5% move while citigroup is in line then the 1.8 from p% from pnc that's less than the move higher or lower, despite the moves, it could still represent a $20 billion shift in market cap next week michelle, back to you. >> great set up. thank you so much. how should you play the banks into earnings? mike's at the plasma with the call to action as we say >> hey, so, we're going to take a look at buying a call. when do you buy a call it's a bullish bet secondly, options have it define am of time, so look for

catalysts. we have one. earnings next week and this is really a good strategy to use when options are cheap jpmorgan, which is trading close to its all time highs where it closed today, this is one of those situations where the options are cheap. if you bought the stock, you're chasing it at a high level i'm looking to buy a relatively short dated cal ed i'm look inie july 94 calls. they'll expire after the -- you can spend 1.50 for those this is an interesting alternative. long the stock, a less risky way. >> all right what do you think? >> i like this trade going into earnings because i like that it has a stock replacement trade, sojpmorgan, i want

to take my profits in that i know what my downside risk is. they disappoint in some way or o another, so for me, i like this a lot. >> let's see well, i mean, tit's a pretty steep move we're talking about being up 16% over the past month. it's biggest rolling forward moves going back to the election in november. so ipg a a lot might be priced in street wide consensus is a dollar higher. there are 15 holds, three sells. not a lot of u forarea on the street for this. maybe that's the opportunity but if it were languishing, maybe there's potential, but it has moved 15, 16%. >> that remains supportive of this trade strategy rather than being long the stock it's a risky place to be long the stock for the reasons you citeded, yet are you really

interested in not being long the best of three? that has been performing well. that's the di limb ma you face >> which is why i like it as a stock replacement. you have to massive run up, so why take those profits home with you and put them into this trade. >> where's the risk? >> it's only a dollar and and a half so you're going to risk just over 1.5% of the stock prize going into earnings. when it moves close to 3%. to me, it's kind of a no brainer, actually. >> cool. coming up next, tesla officially in a bear market and posting its worst week in a year and a half. that's great news for carter though we'rgog ee intoxplain why when options action returns i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series.

okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.

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across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. welcome back time for the upside call where we look back to some of our winning trades and last b b month, kohn carter said it was time to fump brakes on tesla

that's worked out well take look. >> on options anchor, it's how we make speedy problems. risk less so we can make more and that's swrus what they did with their spin on tesla carter thought shares had gone too far too fast >> tesla is up here. at this point, you think profits. but just shorting the stock, that could lead your portfolio looking worse than this. mike sold the 375 strike call for $18.40 now to keep that money, mike needs tesla shares to stay below that call's $375 strike price. about 375, profits will trail off a. but mike won't see losses. until tesla rises up the strike

by more than the cost of the trade or above $393.40 by july expiration >> they say an open road helps you think. about where you've been. where you're going >> but there's a trade off and above 393.40, mike could still see loss, so to limit his risk, mike bought the july 395 strike call for $10.40 and create d hi bear call spread now, between the 1840 he elected by selling the lower strike call and the 140 mike still gets to buy $8 it's the he can make on the trade. but in order to see profits, mike needs tesla shares to stay below $383 by july expiration. above 383, losses do kick in but unlimited to the difference between the strike of the call he sold and the strike of the

call he bought so mike did something even the most skilled drivers can't do. make money whether tesla falls, stays flat or revs higher. and since the time of the trade, tesla shares have crashed by more than 10%. leaving options action's biggest fan as asking one thing. what will they do next >> tesla officially entering a bear market this week. what do the charts now say >> we know what was interesting is if you look back three, four weeks ago, we started getting the cracks from apple, nvidia, but tesla held up. then at some point, it didn't. if you look at the exact decline over the past ten, 12 sessions, a 20% decline and closed around 313.

too late to sell, stay long i would cover that moou on to the next. >> we made all the money you can. we took the profits. you can close it, it's going to cost you about 15 cents to do that probably should. i don't think tesla is a buy at these levels it's ludicrously overpriced. you sell 100,000carsand lose money and you're worth somehow more than a company that says -- i think the cushion remains. i'm interested potentially in selling condors around this thing. put spreads and call spreads because i think we probably are going to get a little bit of support here

wouldn't you buy long-term puts? >> they're incredibly expensive. you're talking about something that's probably three, four times as much relatively speaking compared to most stocks in the qs. >> but it's three to four times as volatile. but it's muted downside because what happens, especially if you've been short this thing, you had your head torn off you're going to want to buy it back it still doesn't -- on a tactical basis, a stock that claims 20%, there's congestion from april through june. if rp going to crash lower, it would have adobe done that it's found a level where that condor thing you're talking about is going to make a lot >> we ran a kensho earlier in the day and i was reminded of how often tesla has fallen 20%

like a lot throughout its short public history >> i'm thinking selling 280 strike and buying something lower. that gives you a decent bit of protection >> that is our daily tesla segment. got to do it every bay up next, tweets and final call n'move hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim.

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steve, other than making me move stuff, i'm here at the td ameritrade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. time to take your tweets is it still true 90% of options options expire worthless >> yes, most options do expire worthless, however, that's not the only thing you ought to ask yourself, you also risk less when you buy them. >> it's not just money poof gone up in smoke. carter >> down 5%

i suspect they go down more. sell the qs. >> i like the july 94 calls. >> i like buying tesla right here >> okay. catch us back hereext nfriday, my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. if you were on a desert island and you needed to know one piece of information, one piece that could predict th