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tv   Options Action  CNBC  July 3, 2022 6:00am-6:30am EDT

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category and put the comments that you would group in the "i remember my friendship with bob" or at least "i remember him as a good guy," they'll far outweigh the anger category. the town is that special. the anger category. the town is that special. it really is.
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that became clear, for all the aspirations to try to move to other forms of energy petroleum is where it is at and likely to remain for the foreseeable
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future. jp rockefeller, when he first got into in ohio is what we're still looking at today. you have the guys out there drilling and looking for oil. it is really the processing the utility portion that we're talking about, pipelines, and the downstream we're find thing in marketing, this is what you're going and buying at the gas station. there is only a handful of companies that do that. i like phillips 66. and one of the reasons that i like them is they have a diversified foot front. >> footprint. >> you can take a look at the more 9 bucks a share that the company is expected to earn in the years going forward. if you look at robert shiller's way, they need to forecast is
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not so good and they're overly optimistic. if you look at the average eps of the company in the past ten years, you're looking at 6.10. ten years ago it was trading at essentially the same evaluation . >> buying from move 85 strike calls selling to august 97 and a half net net. you'll be spending about $7, a significantly less than the distance between the strike. this is a way for you to get long exposure. and take advantage of the fact that at this point, with all
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the volatility that we have seen in this sector, and every other one, actually, you can get the offsets for the decay. >> for fun, first, these are weekly marks. 2018 to present no drawings or lines. look at the next chart >> is it penny to penny. it has nothing to do with any of that when it is is this. it is stocked to the penny at the converging trade lines. i'm not selling anything. and what we know is that this stock has just dropped the final chart 30% to the line that bounced off over and over
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and over again. i think that warrants, therefore, that they will do it again. does it have to? no. bust it is a good bet to make. >> it looks good according to carter. >> you're look agent space in a different light. >> that is exactly right. i'm looking at the solar industry. we have a silent rotation in the solar industry. this is one that i think is worth taking a look at. we've seen this stock has recently formed a double bottom around 57 after declining 55% from the peak of last year. that happens to be the same breakout level that we saw in september of 2020. what this indicates to me is that the decline that we saw here in the solar industry is coming to an end and now is the opportunity to gain the exposure. but i think the more important chart is to look at is there is
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a relative chart, relative to the market. despite the etf not making absolute highs, we saw some breakouts here to the upside. as energy stocks continue to be elevated, it makes the switching to solar is quite compelling. i would like to look at selling the premium. the implied volatilities are quite high. there is not a particular catalyst for it pause it is an etf. so i'm going to the calling 12th expiration and i'm looking at selling the 70 and a half, vertical here. it allows me to collect the 79 vertical width. and it gives me the opportunity
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to take advantage if the etf stays where it is and if it declined a little, it gives me the opportunity to own this particular etf. a little bit south of the 6% discount. this gives me exposure for the second half of the year as we see the rotation into clean energy again. >> i like it. it has all the elements in the beige to bullish reversal. >> we're answering some of your more burning questions. more after this. it's time for our lowest prices of the season on the sleep number 360 smart bed.
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so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade is this a bear market rally. what do you say? >> absolutely that is from friday, june 10th, that we gapped down. that is the 401 or 5% higher. i think that is in play. >> and the next tweet. what is in the charts for ibm? tony, what do you think? >> carter is the one that brought this up a month ago.
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despite ibm has not broke out on a relate basic, but i think it is continuing to head higher. >> carter? >> i think higher. >> would you let them 70, 75 call spread? mike? >> yes. i think this makes sense at 65, 75, 70. bare in mind that you'll have a dividend in august. >> a trader bought 50,000 snap, $17 calls and sold 50,000 july for a 40 cents credit and $2 million credit what is the strategy here? mike? >> when do you that, you are expecting a nearer term move and not a larger one. the company is going to
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reporting on or about the 22nd. this is a little more deepened to the pool type stuff, usually for most people starting out with the calendar options. >> it looks like it will be on the bottom of the pond. >> that is pretty clear. up next, final call.
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in alphabet and i see a rotation in solar with tan ets. >> mike? >> a lot of people buy electric cars but they're going to continue to buy the gasoline ones. i like phillips. >> that does it for us here in options action. we'll see you next week. do not go anywhere. a cnbc starts right now. redness, fine lines, dark spots. and now with the breeze, all that's changed. the breeze advanced foundation is amazing. it gives you skincare and makeup all in one. it's like a thin veil, but it has extraordinary coverage. at my age, all the other makeups made me look older. it was uneven, you'd have to layer them yourself. it never quite came out the way i wanted it to. the great thing about the breeze is it does your blending for you. i love the way the luminess smooths out

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