$7 billion under management. whether that was just pure, unadulterated greed that he was after or whether it was just the conquest, we may never know. but he wanted the money, and he got the money, no matter what shortcuts he took to get it. the countdown is on for a monster week of earnings. the list goes on, which are the names of the results? plus a call to action on boeing. is there more room to run? and later we look back at united airlines, has the tray been friendly? this is options actions. let's get right to it. we are honing in on the big

tech name centers. the chart masters teeing off with a look at the technicals. carter? >> that's right, some 750 stocks in the s&p, most importantly we have heard from one of the top five. the other four largest stocks in the market report. statistically when they've all reported on the same week it is not been a particularly good week. let's look at a table or two. what do we know about the top five? there waiting in the queue and it's almost 50%. they round out at 41.6%. the top five waiting in the s&p at 22%. we have heard from tesla and

the market reacted well to its news. the question is are we getting the same thing out of the others? here is a five year chart. we all know how it is top. now it has bounced along with other equities. the question is how far does the balance carry? we are getting close to the 150 day moving average. this is about where it starts to stall. let's drill down to amazon. here is a comparative chart. amazon of 950%, almost triple that of the qqq. what about over the last two years? over the last two years it is a disaster. amazon was out 21%. the risk for amazon is somehow it does not do well on his earnings. let's look at one final chart. you have a lot of overhead supply and you have a gap to

field. i am actually thinking we are going to get a nonevent. it moves a lot during earnings, but maybe this is just a push this time and amazon is right where it belongs. >> my, you are looking at amazon? >> i'm with carter. over the course of the last two reporter quarters we had very big moves. two quarters ago we got a big poppa most recently a big drop. the stock is down just under 27% year-to-date, underperforming on the nasdaq. of course a lot of people know this, we have aws growing and a great great and has very nice margins, a lot of people are now looking for potentially as much as 40% margins. i think the $1 trillion growth market value that everybody is

looking at for 2025. i think that is very much still in sight. the important thing that creates headwinds is there are sales numbers and margins on these numbers in the most recently reported quarter that were quite miserable. they have pushed their pride does not prime date into the third quarter. that's not going to show up in second-quarter earnings. the options market is implying a move a little over 7%. that probably makes sense when we consider how big the moves were the last two quarters. i kind of want to take advantage of the elevated premium thinking because a stock has already been so depressed we are going to get a more muted move. i was looking specifically at trading a 125 quick calendar. i was looking at the august- october quick calendar. when i was looking at this earlier this morning the stock was trading around 125 or even slightly higher. amazon down more than 2%.

i think the 120 might be the strike if we open on monday. it might be the closer one to you. the idea is trying to capture the elevated decay and limit the risk encase we do get another outsized move. >> tony what is your take on the straight? >> i agree with the overall thesis that michael carter has. we know that prime day is pushed into the third quarter. consumer data shows that consumers are quite strong. the e-commerce business i think will report fairly well. i think what will likely provide headwind is affect. this is something that i think could be a little bit of a downside. if you look at the stock or the price of the stock, when it broke below the 145 key level

that it had held above for multiple years, it quickly got down to that one of five level. the relative strength that carter was referring to over the last couple of years is very poor. i agree this is likely going to be a nonevent and specifically like to put calendar strategy mike is putting together. i do think for me i would like to go a little further lower and have a slightly bearish tilt to this calendar or slightly neutral. looking at that 115 strike gives you a calendar spread that straddles the trading range . as long as it ends up somewhere in-between on earnings this sure calendar or this calendar spread will be profitable. i like the trade, i like that thesis. slightly more bearish than mike and carter. >> mike, i am just curious what you think? >> as i was suggesting that is approximately where the stock

was trading. i was suggesting that maybe the 115 will be fine. i would suggest if you are choosing strikes choose ones that if you are between strikes choose one to the downside and not the upside. >> last month tony laid out a way to play the name but with results do want thursday he feels these granny smith games could be coming to an end. tony, how are you playing it? >> that's exactly right. i think it's time going into earnings next week. if we look at a chart here of apple we see this slow and steady uptrend it's been in over the past couple of years. what we have seen recently is a breakdown. now we've come back to retest the trendline and the risk for reward favors the downside. you can draw these charts different ways. if you look at it another way you could draw a head and shoulders top formation.

but both charts poem as toward further downsides going into earnings. one of the things that i've noted is apple is a relatively slow-growing business. if you look at eps and revenue growth we are looking at single digits over the next couple of years. i think the stock trading 25 times next year's earnings is a pretty rich multiple. i think that you might also see multiple contractions if we start to see guidance that is a little unfavorable for the rest of the year. the market largely has shrugged off the news that we saw last week where they were planning on slowing down hiring, many of the tech firms. that i do not think is reflected in the stock price. when we look at the market right now apple is implying a 5% move versus a 4.1% that we've seen over the last 8/4. premiums are elevated. i'm going to favor selling premium and i'm going out to the august 26 expiration.

i'm looking at selling it 165 call option and i am buying a 165 call against it. here i collect about $4.07, more than 40% of the vertical with. this is a strategy profitable if apple moves lower or simply stays where it is. i think there is limited upside given the strength we've seen over the last month. >> what does your apples chart look like, carter? >> you saw some great lines there. you have two well-defined circumstances. you can call it a head and shoulders top and that's what it is. this has a big correlation with the aggregates. then we see a stock that bounces to the penny off of a trendline and breaks trend. is a good rule of thumb if you throw back to the level from which you broke it is defined as a rally too difficult level. right to the kill zone, and i will go after it.

>> what's your take on the trade? >> i agree. we haven't seen earnings estimates. we have a lot of people talking about all of the signals that we are in a slowing economy and might be facing a recession, and yet still the street is looking for nearly 7% eps growth. i don't think that is very realistic. we have elevated options premiums and the technical set up. you want to sell elevated options premiums when you can you want to fade the side that has potential resistance. i think the two people better informed tell us that just said that's the case. i think the street has not come to grips with the fact that we are facing economic slowdown and that will impact everyone including the biggest companies. boeing earnings are on the horizon. we are laying out a call to action, the details next. and for everything options actions check out our website

and newsletter. much more options action after this. 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. ♪♪ hey, did i tell you i bought our car from carvana? yeah, ma. it was so easy. i found the perfect car under budget too! and i get seven days to love it or my money back... i love it! [laughs] we'll drive you happy at carvana.

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and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. welcome back to options actions. check out boeing shares pulling back at the and of what has

been a huge week. on pace for its best month since march of last year. it might not be all clear skies for boeing. if you also think the stock is going to lose altitude you are in luck. he has a way to play it. >> this is a company that has faced material headwinds over a number of years. obviously the situation with the 737 max jet, and a lot of issues with 787 dream liners. toward the end of this most recent quarter we are probably going to be seeing data that suggests the liveries have strengthened. this is kind of a mixed bag, the situation that we have. we have the improvement in the plans are essentially sitting unpainted on those lots. we also recognize 737 max jet's are not flying in china. i think we probably have not heard yet but will but they are

also facing potential inflationary pressure. that could hurt some margins. one final thing that i was say, i know a lot of people who have been following know that i do like the defense sector. interestingly for boeing, which was more than 70% commercial, as they have lost their lead in that area in a way the company becomes more defensive. a commercial portion declines and defense is a larger portion as it currently stands. i think the bouncer we have been seeing it's probably a little too optimistic. of course we have elevated options premiums going into earnings as we typically do. in amazon we were looking at the stock to go sideways. here i also want to take advantage of the elevated options premium. i'm leaving a little more bearish in the case of boeing and looking to a put diagonal using august and october is my expiration.

in this case i was looking at the 160-150. just like amazon, pay attention to where the stock will open on monday. you are looking to purchase at or slightly out of the money and using a lower strike put on the short side. the idea we are going to try to capture some of that elevated decay. this will have a standstill right of return. even if they traded sideways we would expect to make a little bit of money. i think the moves that we've seen might be a little overoptimistic. >> carter, have to go to you for the charts. >> i think it's overdone. let's look at some charts. the first one is going with no drawings, no lines, no annotations. let's put some lines there. boeing was descending and a well-defined channel and plunge to the bottom. 45% s&p's rally 10.

it is overdone. another way to consider it his relative performance. this is relative performance, a simple ratio chart. it is to the penny to the 150 day moving out of -- moving tally. we are threatening and hovering with the brink below that all data trendline going back to the early 1980s. and finally boeing's relative performance all data to the s&p was such a great winter and it has just fallen on hard times. we have unwound all of its relative forms going back to the mid-80s. the stock just rallied 45%. >> tony, where do you stand on boeing. >> i definitely think we are in the early innings of a sentiment shift. i think right now boeing certainly looking strong after that delta order.

they have notched 183 waters versus 12 for airbus. i think we look at the fact that 80% of their backlog is in a single plane there is a ton of risk and airbus has really been running circles around them. that is the risk i see going into earnings. when you couple that with a technical chart very similar to the apple chart the risk-reward ratio favors to the downside. if you look at mike's tray structure i think it is an interesting use of options to purchase low. he's using an and the money put that will allow you to purchase to the downside for relatively cheap. he's selling that august purchase to the downside for relatively cheap. he's selling that august 1 50 put option that has elevated implied volatility. when you do so you are able to reduce the premium you pay for that downside exposure. in this particular case he's

only risking 5% of the stock value and paying less than a $10 wick which means even if boeing has a terrible quarter and the stock the client significantly lower than we expect you are not going to see losses to the downside. >> up next a couple look back on a few past trades. plus, we are taking some of your most pressing questions. a call to the tweet when options action returns.

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aren't just made for traders -they're made by them. thinkorswim® by td ameritrade last month tony laid out a way to play united airlines. >> this is the one airline that has held up one of the best and has recently broken out relative. this is really where i think not a lot of investors are looking. if you think about the expansion into more international travel over the past few weeks, which booking data seems to back up, i think united airlines is want to pick for a breakout. binder 38-47 call spread for about $2.87. that is about 7% of the stock value. >> after that united side nice run up but has since released

its landing gear. tony, what are you doing now? >> the trade was working quite well but earnings took the sale out. we paid about three dollars for this debit spread. the rule of thumb is if you lose more than 50% premium on a debit spread it's time to get out and that is exactly what has happened. >> we are taking a look back on one of mike's trades. a while back he laid out a way to drive you to fort for a long call. >> at the current valuation for this trading at $470,000 of enterprise value per electric vehicles sold. that's just for the electric vehicle business. compare that the 780,000 for tesla. to me i think this one seems pretty cheap. i was looking at those january 13 calls yesterday. those are actually in the money and those will cost about $2.40.

>> since then the stock is climbed about 3%. mike, what are you doing now? >> i happen to own the stock and i own higher strike calls because i got into the tray before we talked about it on the air. i will say one of the things you can do, because i think we are in a different environment is consider selling neared aided premium against it. if you don't own the stock you can sell downside splits and potentially have the stock put to you, or you can sell at or slightly out of the money call options to offset that decay and allow us to hang on to this position a little longer. >> our first fan asked how long do you think the pop in tesla post earnings will last and how would you trade it? carter? >> a pop it was, but it closed poorly along with the market. i think the pop is probably over and left a unfilled gap.

i suspect that will be filled. >> the next fan asked our favor stock is down but has a lot of potential tailspin. i believe if we bottomed it could run. how should i play this for potential run back to the top, mike? >> i really like it as well. it's a fast growing company trading right now less than 19 times forward earnings. of course i think those are fairly optimistic. i actually even had colleagues taking advantage of some recent offerings over at costco and picked up one of these things. the thing i was say is of course the stock has had a good run if we take a look at the last several years. i will consider call spreads or diagonal meals while premiums are elevated the way they have been. >> so an answer and shopping tip. our fan asked update on johnson & johnson for september 16 options play last week.

the revised guidance numbers on the earnings call. tony, why don't you take that one. >> the rule of thumb is similar to united airlines who paid a little over six buck's. you still have about three dollars left in this particular case because the catalyst is over time to cut your losses and take your three dollars and apply it to the next trade.'s >> up next, the final call. flowers are fighters. that's why the alzheimer's association walk to end alzheimer's is full of them. because flowers find a way to break through.

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with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. >> time for the final call. >> boeing is a troubled company. perhaps it has been making a term but has already advanced 45% in a matter of weeks. >> tony? >> we have seen an incredible amount of strength in apple the past month.

unfortunately i think that is coming to an end. looking to sell an august weekly call spread for next week. >> i don't think amazon is going to be amounting to much. i like calendars. i think boeing has come too far too fast. >> that does it for us. don't go anywhere, politics and profits start right now. (male announcer) up next, a breakthrough, age-defying treatment to visibly transform the dry, crepey skin on your body. find out more in this paid presentation for new crepe erase ultra with the new ultra smoothing neck repair, brought to you by body firm. have you seen it? it shows up on your arms, chest, legs, and your neck. it's that dry, crepey-looking skin that can make you look so much older than you actually feel. (female announcer) are you ready to unlock the secret to smoother, younger, and healthier-looking skin on your body?