for scam artists, you know? because they prey on those type of situations and those type of people, you know -- good people who want to genuinely help people in need. -- captions by vitac --

you can call this an ascending triangle, which, doesn't matter.

after this you dropped from the march covid low the stop started. it is exactly the same price it was 12 months ago. march 18 of 2021 it was $3.92. and in 2022 it is three dollars $.89. >> thank you for that. what is the trade? i go what is going on now, the spike we have seen. that is a tailwind. we have wheat prices up 30% over the last several months and to put some things in perspective. this has historically outperformed. small movements don't affect sales that much. when you have big moves in the curve shows up, that is when the stocks start to follow. we have seen moves where we

just moved up 20% in three to four months, to sent deviation. the returns for&, on three or four month forward-looking basis are double what they are under normal circumstances. if you look at situation where wheat is up more than 40%, this is a rare circumstance. this happens less than one time out of 100. the returns are even more substantial, it doubles close to 15% return over 90 to one and 20 days. only 10% of these insistence we have o results because those 10% all occurred this month. so the thing to do is to do by the stock. we have elevated options. is looking at the april call

selling for $5.70. you want to keep that expiration near dated. you want to collect more than one% of the current stock price and you only want to do it when you give yourself room to the upside. we get that here. when i was looking at these stock was close to $3.80%. give yourself 10% room and a little bit of juice. >> what is your take on the trade? >> it's interesting. you can see this stock has consolidated over the past 12 months. when you have this is weather breaks to the upside or downsize. yet to look at the performance to decide which way it goes. we see a bit of silent rotation relative to the market and the sector since january of this year. that puts this to the upside as

carter was showing you. jed steer is trading on a fairly small discount. if you look at the business, it starts to focus on higher tech on emotion and recurring revenue. it can be up to 20%. if you look at this, it's a great time to potentially get some exposure and reduce your costs basis by using the volatility and put it into perspective. is trade covers 1.5% in 30 days. couldn't hair to dividend, one% for each year you hold onto the stock. you are collecting premium reducing your cost basis and giving you a better cost basis for long-term exposure. >> driver, you get the final

word. >> does it not break out? that is why it is called the stock market. you speculate. we speculate that it will. >> okay.& to daylight. oil prices are continuing to jump brighter days ahead. tony, what are you looking at? i go i'm looking at this 10 etf it is electricity prices that have ignited a bit of interest in solar etf and solar panel maker. if you look at the long-term chart you see the etf has rallied 600% from the $21 low. we have given back about 55% of that over the past year. the $70 support level has albert this is a basic good form of further upside boom.

if you zoom into the chart you see an inverted head and shoulders pattern. that is confirmation that the low we have senior over the past month is likely going to old and we will start to see some upside in the inverted pattern we target a $100 upside by roughly the may high. if you consider that and the implied volatility move that we see, especially with the consumer price index of electricity cost spiking and going higher over the past six months and then january spike at four% in january alone. this is the reason why we have seen a resurgence into seller again over the past month. by using the televised volatility what i'm trying to do is go out to april 21 weekly

expiration and sell this put putting about $5.55 for the april put and then paying $2.38 for that 66 put creating $3.60. is 39% of the with trying to collect as much premium as possible. >> okay. let me get your take on renewables or more versus oil. >> this is an interesting oil. an uptick in renewables. it's a combination of two things. higher oil prices. that ignites excitement in the space and then the question about having energy independence. whenever we get our energy is not from our favorite actors. i think we will look at solar

and oftentimes we are unrealistic about what its contribution to our future electrical needs will be. believe it or not, if you invest in solar you should also invest in fossil fuels as well. that is because solar and wind tend not to be completely reliable. sunny sometimes and not others. consequently you need other portions of electrical generation to be able to meet dips and supply when they occur. that usually means something ramping up quickly. you're talking about whole, natural gas and things like that. if you're going to invest in electrical generation you probably want to look toward nuclear. we are looking at nrl. if you want to invest in solar you probably need a barbell trade believing in fossil fuels as well. >> there are a lot of choices to make soap which chart looks

the best? >> well, a whole new chart. conversations are interesting in europe. they are talking about 10 to 30% electricity inflation in 2022. consider that. that is one to three% of the gross national product. i would rather go with something like 10. >> okay. go to option actions and you can sign up for our newsletter. here is what is coming up next. >> thinkorswim® by td ameritrade is more than a trading platform.

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♪ ♪ ♪ ♪ welcome back to options action. 20 for one stock split and the first since the ipo of amazon. a lot is change. this changes more than just amazon chairs. client how to play it. >> we talked a little bit about the impact for options when you

experience a stock split. if you're wondering, the number of shares increase in the share price decreases. something similar happened with options. first you take the number of contracts involved and multiplied by that split quantity. if you have one contract you will have 20. then he had a 3000 strike call it becomes one hundred 50 park and premium gets divided by that same number. if you had 20,000 and premium, divide that by 20 and now thousand dollars. the split will not take place for a couple months so what we do until then. if you don't have options you can use fred's company that lowers your risk and cause. that can adjust the breakeven of a trade. they also allow for my new more nuance and call a put or

selling it. that is just a bet on a stock's direction. >> what are your thoughts on the direction. >> i've chart so we can see that together. the first and looked at the sideways action, proceeding incidents like this. this is a five year jar. we know amazon effectively doubles and then press. 18 months doing nothing and then it doubles again between march and september of 2020. for another 18 months it has been resting and consolidating. here is the second chart. the question is, is this some sort of topper applause to refresh. people will make bets both ways. my bet is the consolidation phase is not and and then it stays range bound and purchases

made for longer-term plans will be money cut. >> how do we play this? >> so, the expensive way would be to sell& something like that will cost -- it's 450 premium trade. that is $45,000 with risk. the way to use this bread is to buy a calendar spread. i was looking at the april and june call calendar. spending 224 dollars each for those. if you sell the weeklies against it for 166.75 year dealing with i have $1 million.

that is a cost of two shares. maybe that is too much. other cheaper ways that we can make a similar bet? the answer is yes. we can sally and iron condor. specifically the 2680 2700 3260 iron. do you sell that spread and so the call spread. this can usually be entered as one trade on most platforms. you could collect about half the difference between the strike. both of those are $20 and you can collect $10. in this case your total risk is $10 per contract. you multiply that by 100 and that is $1000 outlay and $4000 in risk if it goes against you. what is your take? >> the way of looking at this,

the chart is amazon has been in a downtrend since november. the site the good news the stock is not broken out above that downtrend. amazon will continue to go to the downside. i think this reflects the increase and concerns of labor costs and fuel costs for the company and that amazon has a solid business and will be able to navigate this. if you look at the trade structure, these are perfect strategies for a flat out neutral view on the underlying stock when in the high environment like the current uc and amazon. have a bit more of a bearish view. i think for viewers who agree, make some adjustments by changing that to a put calendar spread and shifting the prices a little slower. you could also shift call strike prices lower as long as

they are $20 apart you can take the same neutral view with a slight bearish tone. or vice versa. if you disagree and you have a more bullish review and you think amazon is at the bottom as carter suggest, you can do that with higher strike prices before moving the put strike higher. these are minor adjustments to make based on your outlook for amazon. >> up next to look back on the trade from january. more action right after this. >>

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with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade welcome back. at the end of january tony put on a bullish trade. >> the stock is underperforming over the past two years. over the past few months but we have seen is a bottom formation called a double bottom. that is outperforming the sector by 16% over the past two weeks going out to march. i'm selling it 80 by 75. we are collecting $1.81, 37% of

the risk taking that most will trade higher over the next month . >> okay. the stock could bounce around but just about at a breaking price. what would you do here? >> near the breaking and approaching expiration you have to close out the trade in breakeven or rollout the trade. if you look at the relative strength, it looks positive. i believe in pieces on this trade so i'm going to roll it out to april. 72.5 put vertical with the similars trade structure. i'm collecting about $1.50 and that will allow you to extend this trait another month and play for the upside. go okay. up next we have your trade and the final call. >> ♪♪

♪♪

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welcome back to options action. how me understand bearish option traders. unusual activity during catalyst, the super bowl and earnings reports and insider buys. carter, what do you say? >> what you don't want to understand meeting price is wisdom and wisdom is price. there is no such thing as positive or negative news. there is news. what they are saying, they are not big enough stocks. just exited a low moan vice president kamala harris. should i double down another three months or so? we were talking about uranium. here you go. what do you say? >> lodges constituent. it seems like it is bumping its head low. use crossed spread risk to avoid immediate downside

exposure. >> do you have a viewing uranium? >> i like them a lot. >> okay. is there a winnable option strategy in coin base getting hinged on march 200 calls and now the exit? >> a good question. >> yes. we just abandon the bullish call here for big one. i don't think this is the time. cut your losses and find better opportunities elsewhere. >> okay. your quick take, mike? >> this is a tough spot right here. it's a function of the risky nature of the high-growth region. i would probably stay away. i go okay. final call. carter what do you say? >> john deere poised to pop. >> tony? >> sunshine for solar ahead. a solid put for the spread.

>> okay mike? >> i like uranium long-term and dear. i usually see these commodities rally. >> that does it for options action. we will see you next friday. don't go anywhere. - [announcer] the following is a paid commercial program paid for by ancient nutrition. these statements have not been evaluated by the food and drug administration. this product is not intended to diagnose, treat, cure, or prevent any disease. this content is for informational and educational purposes only. it is not intended to provide medical advice or take the place of medical advice or treatment from a personal physician. - i'm naomi whittel. i'm an author, an entrepreneur, a mother of four, and i am joined today by the world's two leading experts in natural health, nutrition, and wellness. dr. josh axe and jordan rubin.