it's never good. but in this case, under these circumstances after katrina, it was reprehensible what nagin did. a city needed someone to be a true leader, and he let a city needed someone to be a true leader, and he let everybody down. -- captions by vitac -- happy friday i'm million lisa lee we are back. we have a big show coming your way. let's get straight to it the biggest story this week, the blockbuster performance from amc. it was a hollywood comeback like we have never seen before. shares gaping more than 80% the real ramp up began last week on wednesday, amc made up 15% of all option activity in the united states. a lot of people made a lot of money. for others, this week had anything but a fairytale ending.

mike, we talked about this on "fast. what happened here >> this is really an extraordinary situation that we have seen. both in the obviously, the price action was extraordinary. so, too, in the options market look at the last five days of tr trading volume 18 million contracts traded at amc. five days of volume in the entire option market, that's 200 million contracts. amc alone represented close to 9% of all options traded on stocks, etfs and indexes in the short-term, it's a popularity action. it speaks to how popular amc was

as a trading vehicle of course, when that happens, we want to look at what happens to the price of options actually, if you created a chart of the volume of amc options, the price of amc stock and the level of implied volatility, one month out in amc options, those charts would mirror each other almost exactly usually when the prices of equities rise, you see implied volatility fall. that's not what happened with amc. the price went up, a lot how far? at one point this week, the july 65 straddle was $69. okay that's owning the july 65 call and the july 65 put to buy them both at around 1:00 or so on wednesday would have cost $69. here is the thing. most of the activity we're seeing in the options market are people buying options to make short-term bets. if you bought that straddle, the only way it's profitable is if

amc finished above 134 at july exploration. any price less than that, it's a loser. it's falling considerably. that's true for july, june and some that expired today. a lot of people using these for intraday trading that's okay. i'm not going to finger wag at people who are going to trade securities one thing you have to watch for is when the premiums get this high, it's hard to make money. >> tony, in terms of short-term, long-term, it's interesting, mike highlighted this trade that had july strikes he talked about weekly options earlier this week. the notion is that they have diamond hands. the options activity doesn't show that necessarily. they are not long-term traders if july was the most active contract, that's a month at this

point. >> that's right. most of the action we're seeing is not going out that far. most is going out a couple of days, because what amc has done is they have turned options into day trading vehicles and placing these very leveraged bets intraday typicallystocks that move this month are microcap stocks. they have options lists on them. amc and gamestop have changed that when you look at the charts, it's -- especially when you -- in options trading we look at daily, sometimes weekly charts if you look at that on amc, it's difficult to ascertain as to which way the momentum is moving if you zoom in here, you have to zoom in to small frequencies in order to see that the markets are fairly ordinarily intraday traders are using these relatively short dated out of the money calls out of the money

puts to trade short-term directional bets something we have never seen before utilizing options if you zoom into the five-minute chart, you see clear support around 42, resistance around 68. a point of control around $50. traders trading between the lows and the highs using options as the vehicle that they're doing this one thing i want to say is for investors trading the short dated options, delta and gamma are the two greeks you are mostly interested in in terms of affecting the value of the options that you are trading in this particular case, as mike was saying, vega implied volatility is a huge factor into whether you will be profitable or lose money on this particular trade. keep an eye out on vega and the changes in implied volatility, even if you are trading intraday. >> carter, for investors who invest in a more traditional way, they get hung up on fundamentals as a chartist, you are looking

at lines what does a chart tell you >> there will no fundfundamenta. today, an analyst said that bed bath & beyond is no longer trading with fundamentals. stocks do not trade with fundamentals long-term there's a relationship between the cash flow, subsequent earnings and share price. this month, next week, two, three months, costco dropped 20% and recovered 20% in a couple of weeks. there's nothing to do with funda fundamentals remember this, eastman kodak in july went from 2 to 60 in two days back in august, september 2008, tillray was 17 and it went to 300. hertz right now, 40 cents to 7 bucks. this has been going on since time in memorial

this is a large cap stock at this point this is part of markets. let's look at three charts here, since we -- amc is the subject the first is a chart over the past year. you can almost not see the prior prices because of the current move go to the log chart, next chart. this is where there is a process. in fact, we know that this whole thing got going -- it was $1.95. we surged to essentially 20. we pull back, consolidate. it's a wedge we pop from 10 to 70 look at the final chart. the symmetry is remarkable the january surge is eight to ninefold we consolidate the current surge is from t10 t 70 it's not to say it's easy or that i can figure it out better

than anyone else there's no pretending. no fundamentals. it's charts and a lot of people that look at them. >> mike, what would you say to people out there who want to do what tony was talking about, use options as a day trading vehicle? do you have tips for them? don't tell me, don't do it i understand there's a risk element to this. if they're going to do it anyway, what would you advise them >> well, there's really two things i would advise. one of them is that -- obviously, if you are using an amount of capital that you are comfortable losing, because if you buy options, the maximum risk you are going to face is the amount of premium you spend. if you are comfortable with that -- people are comfortable buying lottery tickets people are comfortable going to the horse track. there's a lot of things people can speculate on that's fine. that's fine here, too. make sure that you size your

trades appropriately some of the reasons i think people are using options is precisely because they don't want to wager on 100 shares at 65 bucks using options can allocate a smaller amount of premium. a lot of people are doing this i'm not wagging my finger at anybody. one of the things we did notice in all of the activity over the last seven trading days or so is that a lot of this activity, people are buying and selling these options within the same day. they are not carrying these overnight. look at the most active options that were going on today many of those expired today. obviously, they were not looking past the weekend even the longer dated ones expire a week from today the thing is, when the premiums are high, you can get this very rapid crush when the stock rolls over so you really have to be very, very nimble if you are going to try to do something like that.

if you are playing for something longer, selling options against some of the things you buy makes a lot of sense >> check out our website sign up for our newsletter forget diamond hands the chart master sees a shiny opportunity in this chart. carter opens up his silver linings playbook tony says this auto stock is about to hit the gas he will break down the trade calling all options action fans, reach into your pocket, grab your phone and tweet us your question. if it's nice, we will answer it on air

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♪ ♪ ♪ welcome back silver shining today but still underperforming the broader market the chart master is seeing a silver lining. carter, what are you looking at? >> lots going on in mcommoditie. silver in many ways is poised and is a lot of beta if one wants to play precious metals. a couple of charts first is the slv

no judgment, no drawing. it's a chart look at the next one this is what my eye sees we worked into the apex, if you will, a standoff what i would point out is that circle that's the day that silver went above $30 an ounce for the first time in nine years it had to do with reddit taking a run at it. do we break out of this range? the third chart is a weekly chart going back a bit further what we continue to do is bump up against this 27 plus/minus level, which equates to essentially 30 in silver itself. we are going to break out. to put the current setup in perspective, look at the final chart here this is how high, of course,

silver has been. silver hit a peak in 2011 when gold did it was one of the most epic double tops ever formed. it's the exact same level in the first quarter of 1980. we got there in 2011 and stopped and put in the double top. a lot of head room, if you will, upside, we like it a lot. >> mike, what's the trade here >> yeah. if you look at slv, which is the etf that tracks silver, which i think is probably the vehicle that a lot of people who typically trade equities and not commodities would use to make a bet, one of the things we will observe is if we go out in the 60 to 90-day frame, implied volatility above 30. that's not blow off top levels but it's significantly above the types of realized volatility that slv has been exhibiting,

had is closer to 20. if we lock at iok at it how mucs thing has been moving around, the options look expensive in cases like this, we often try to find ways to use spreads to reduce the cost. that's one of the things i'm interested in doing. the other thing is that over the last couple of months it seeps around the 23 level, that's where we have bottomed out it dipped a little below that. but essentially, that's one of the prices where perhaps if we wished we purchased this earlier, we would have gotten it around those levels. i was looking out to august, 23 1/2, 26, 28 call spread we buy the august 26 calls, selling the august 28 calls and selling the august 23 1/2 puts when i was looking at this earlier, it was very close to even money it was about three cents to put that trade on. you collect about $1.43 net

between selling the calls and puts with the slv trading close to 26, which is approximately where it closed, you will get immediate upside participation up to about the 28 level, looking perhaps for something in the neighborhood of an 8% increase over the next couple of months if it does drop, you could have it put to you. you could be compelled to purchase slv but you will buy into the 23 1/2 level, which is down closer to the bottom of the range that we have been seeing one other final point, which is that if it continues to track sideways, between now and expiration, it's probably going to see that upside call decay. we might have an opportunity, if we don't get the breakout we are looking for, to make some a adjustments without costing a lot of decay. >> tony, what do you make of the trade? >> i like the trade quite a bit. if you look at the long-term chart for silver, i think it's

very encouraging to the upside, especially if you look at -- as carter shows you the multi-decade what looks like a cup and handle formation that we are starting to see. silver broke out above that $21 level. it's held that level it is testing the $28 high that's the handle part if you look at long-term, if it breaks out above that 28 level, breaks higher than that handle, you are looking at at least 35 here to the upside the trickiest part is the timing of it. you could potentially get the directional view right but maybe not the timing that's why i like mike's trade trading this risk reversal call spread, he doesn't have to necessarily time the markets on the breakout the time decay is not a big factor to the short run. if you get a breakout to the upside, he participates. he can roll this even further and capture further upside by

buying a call and trading a spread after taking profits on this particular trade. >> let's move on to our next trade. start your engine because tony says there's one auto trade that's gearingup for a big comeback which stock? >> advanced auto parts the recent pullback from 10% or so recently, i think is an opportunity, especially as u.s. vehicles average age starts to reach its record of 12 years or so i think auto repair and maintenance stocks are going to be a beneficiary of that if we take a long-term chart here, what you see is this a stock that has made no outperformance over the past five years or so it has underperformed the market significantly over that amount of time. two months ago, it started to break out not only on an absolute but relative basis. there's a potential upside for a

name like this if you zoom into the short-term charts here, you have the recent breakout from that 187 1/2 level. it has come back to retest this level of support earlier this week so far, it's holding after earnings that were announced earlier this week. the earnings were particularly strong i think you are going to see 30% eps growth this year we see operating margins continuing to improve. i think trading at 17 times next year's earnings the stock is trading at a fairly reasonable evaluation for that. i think it's reasonable for this stock to retarget that 210 all-time high and potentially even higher over the next few months the trickiest part about this trade is the fact options are only listed in july. the next options series is only out to september the trade structure i'm choosing to use is a more conservative approach on a potential balance off of this. i'm using a put credit spread. i'm selling the 190, 180 put

spread, collecting $6.90 net net i'm collecting $3.70 on a $10 wide credit spread about 37%, a little higher than i am typically able to collect on a vertical spread like this playing for a bounce here higher to towards that $210 level. >> what do you think, carter >> what's interesting about this country and the aftermarket space for parts, there are three. it's auto zone, o'reilly and aap. aap is left behind if you look at any long-term chart, ten years if you want or longer, aap is performing at half the rate of auto zone, even less than o'reilly basically, over the last year, that relationship has changed.

aap has leading. i think the setup is excellent >> up next, a trade update on a real estate play stay tuned it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ ♪ i'd do anything! ♪ ♪ anything! ♪ is the sweater too much? [ meow ] ♪ anything? ♪ ♪ anything for you! ♪

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welcome back time to look back at one of our open trades. mike and carter snapped up some real estate on the cheap. >> you see the covid plunge. it has marched higher. backed away and now it's reproaching it that's a very good setup >> this is an interesting case for something called a risk reversal look out to july and sell the 96 puts collect a dollar for those buy the 102 strike calls for a dollar net net you are laying out no premium. >> the trade is in the green now. what do you do next? >> you can take your profits and run or sell the existing trade and roll up to the 103 and play with house money >> carter, quick comment >> big week.

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welcome back we have time for a tweet what are your thoughts on clf? i own a july 20-25 call spread mike, you want to take this? >> it's a volatile stock that's one of the reasons you might want to use options. a quick point, they will report earnings at the end of july. your options expire prior to that if you want to capture that event, selling that upside makes sense. buying alonger dated one might be the way to capture earnings as well. it's time for the last word. carter, kick it off. >> silver is knocking on the door of $30 an ounce trust, get long. >> tony?

>> play for a bounce in advanced auto parts sell a put credit spread. >> mike? >> take advantage of elevated options preem ns premiums and py carter's bullish bet (upbeat music) - [announcer] the following is a paid presentation for piyo, created by chalene johnson. she's a new york times best-selling author, a top-ranking podcaster, lifestyle entrepreneur with millions of online followers and has sold millions of best-selling fitness dvds. and today, she's got special free offer especially for you. - hey, is all of the change that you're experiencing, starting to weigh you down? like maybe you're worried about finances, your routine has changed, there's so much pressure on everyone right now. and all that stress makes us gain weight. and to lose the weight, you gotta exercise,