experiment for me, i never wanted it to cost me money, and i never wanted to tie up money without getting some return on investment. i'm not doing this for charity. but if anybody's curious or worried for my sake, i'm way up. it is 5:30 eastern time on a friday right here on cnbc, and that can only mean one thing, it is time for "options action." here's what's coming up on the show. >> banking on a breakout, the financials were on fire this week, and tony zang is the one name you can play to cash in. plus, if you think the market has come too far too fast, mike khouw has a way to take some protection on the cheap. and do the dog days of summer have you feeling tired, run down, and listless

well, you're not alone the chart master is drilling down on the one sector running low on energy. how you can play it for a jolt it's time to risk less and make more "options action" starts right now. hopefully the dog days haven't gotten you down too much it is friday, why not, 2:30 on the west coast let's get right now to it. it was a record week on wall street that should give you energy. right? and a remarkable week for the federal reserve as well. the nasdaq and s&p 500 hitting fresh all time highs and the dow turning positive for the year. look at that all this after the fed made a major policy shift saying they're going to allow inflation to run hotter than normal to help the american economy. jobs over inflation headline that was big in the bond market. the ten-year yield hitting its highest level since june, and the yield curve sharply. tony zang says there's only one stock that can be a big winner, at least one stock that could,

tony, who is it? take it away. >> i wanted to take a look at morgan stanley because of this pickup in rates, that's going to provide support for a rally in financials if we take a look at the chart of morgan stanley, it's one of the strongest from a relative strength perspective easily outperforming the sector since the beginning of march if you couple that with the top 53 and the triangle formation we have, i think the stock is prime for the breakout above the $53 level. if you look at morgan stanley's business, they have built a well diversified business around their wealth management, and with the strong capital ratios they have, the only head wind they have is interest rates. by looking at the rate curve, the recent uptick in terms of inflation expectations we have seen and the fed policy this week, that has driven the long end of the curve substantially

higher while the fed policy is keeping the short end of the curve near 0 when you have the steepening of the curve, that's going to reduce some of the head jinds when we see here for morgan stanley. the trade setup is a structure that number one is trying to capture this potential breakout above 53 and taking into account the fact that the applied volatility percentile sits at 13% so relatively low. out to october, i'm buying a paying about $2.75 for the 52 1/2 collecting about 95 cents for the 57 1/2 i'm collecting about 95 cents for the 57 1/2, and net ne i'm paying about 1.75 debit for

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chart of the xle, the s&p 500 energy sector versus crude oil, and you can see they're fairly correlated they both plunge in march with  all equities, and they both recover, but energy, the commodity has continued to recover while energy stocks are not. you can see the divergence there. look at the second comparative chart. it's a four-year chart

on any rolling three-month period going back to 1990. that's an incident rate of 0.16%.

those stats, including three times in 30 some years on that

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