>> it's gonna be something that he's gonna have to live with his entire life. he will get out of jail one day, far earlier than he would have otherwise, but he's never going to be able to overcome the scarlet letter he's been branded to be able to overcome the scarlet letter he's been branded with.

a follow on to a previou gold miner's grade bar rack gold on a possibl pivot. it's time to risk less to make more disney has had a rough start to the year, down 30% and next week's earnings report could b pivotal. could a turn around be more than a figment of your imagination? carter worth is here to char this ride. what do you think? well, it's an unmitigate disaster, a mess sometimes there's opportunit when it's all gone let's look at a table. there's something known as the dogs of the dow. these are the worst performing

stocks and that's on a 12-mont trailing and disney bringing u the rear 40% each stock has their own issue from 3m to boeing. let's look at at charter t figure out what we have. here's a comparative chart two lines very straightforward snp verses disney. snp still has gains. the question for disney itself look at the drawings on this next chart invitations you can call i whatever you want but it has the elements of a bearish to bullish reversal the sequencing suggestin something is afoot same chart, just the dow trending question and we moved above it put those two together, th proceeding two charts and what we have is a stock that move above a down trend line and ha

the elements of reversing. finally, there's this. look at this relativ performance chart. this is simply disney relative to its sector and what you see here is disney relative to xly final chart and every time w have come down and we're in free fall here, absolute and relative to this downward sloping trend we bounce. the bet is this is an instance so bad it's good play for bounce >> okay, so i'm followin narrative and logic here in th chart. what's the trade then? >> yeah, so it's interesting disney just for frame of reference, their peak earnings in 2018, $7 a share trading 15 times that number. ep s fell because so many of their businesses were impacted by the pandemic. but we are starting to see som signs of life in the parks area, for example. they have the cruise areas but the important thing to remember,

a lot of people are focusing o things like streaming and have their own on demand service bu the krut cal asset disney has is espn must see television if realtime. that generates about $4 billion, a third of their share it may not get back to 201 number but it doesn't need to to be reasonably valued this looks luke a compelling situation. of course when we go int earnings we'll tend to see options are elevated that's th cause here i'm looking at selling a quick spread the nearest dated regular, the august 10, '0 spread lightly out of the mone collecting a little over $1.60 for that the nice thing about the trade is even if the stock essentially trade sideways or fell a small amount, you are probably oka

here and you get to collect al of that premium if the stock does rise and your max risk is going to be $3.40 per share. that's if it fell all the wa blow that 100 spread that's less likely >> tony, thanks what are you thoughts here on mike's trade little bit or both >> i like both looking at disney there's a lo of optimism especially on th back of what we heard from netflix but also hilton an marriott which reported earlie this week, travel is coming back at a strong pace and that's good for both the theme park as wel as the streaming direct consumer business if you look at the chart, that 110 level it failed to get above in june earnings could be th catalyst we see that above tha level. so this is a type of strategy use quite often especially going into earnings because as h said, two out of the three

possible scenarios if disney moves higher or swaes, the strategy is profitable the trade off is the fact that you have negative risk to reward ratio. i happen to be in the camp disney could move meaningfully higher so i think my preferenc is more so based on perhaps different outlook no necessarily because i don't like his trade. >> okay so mike i'm giving you the final word and reactio there. >> yeah, the real issue is whether or not you think tha the market might be reaching some area of potential resistance i-do feel that there's inflation numbers to worry about. i have a feeling we're at difficult level for the market and both have their benefits >> okay, good explanation. switching gears, tony likes to consume chips after the dip. tony, take it away >> yeah, so the reason its

similar to what carter i looking at in terms of disney, this is a stock that has a dismal chart but one important level for us to pay attentio to, that $35 level we reache down to because this was the level that the stock stuck below 35 for about 16 years. it only broke out from there i 2017 peaking up to 68 and a half before coming all the way back to this $35 level and i thin the market has a little bit of memory and this is a potential opportunity to see long expo sure only a quarter that cover intell have a birating on this and most analysts don't expect any type of meaningful eps growth until 2024 the sentiment on the street is fairly overly bearish and that sentiment leaves me to be a bi

more concerned especially sinc we reached a level to look for long exposure. to sauking into the fact tha i'm looking for long ter opportunities here for intell, i'm going out to the september 9th weekly january 2023, 35 to 38 call diagonal spread putting $3.55 for tha january 2023 at the money call option and collecting 44 cents by selling that september 9t weekly option with a strik price around $38 i'm paying under 10% of th stock's value to gain upside exposure through january of 2023 and by selling a diagona spread, i have the opportunity to potentially sell furthe calls again to reduce the cost of buying these longer neede calls. >> okay mike what's your thoughts here on tony's strategy for intell >> you would point people to

earnings we saw in uber and that tells us when the street is so pessimistic about something, what can happen when you get any kind of decent numbers comin out? you have a real upside surpris potential. actually it's interesting here's a place where i might use straight vertical myself on th bet. the real problem for intell an the reason we're seeing stee declines and hug underperformance is the fact that management really focusin more on marketing than engineering and of course that takes some time to correct tha problem. >> carter, what's your tame do you see anything in the charts for intell >> just as tony articulated an similar to disney, this is a protestor typical so bad it' good i would point out if you look at at intell's performance inde which we know its first prin december 1, '19 # 3, intel making all sometime record

relative lows. that's the very definition of so bad its good >> tony, this is your trade. i'm giving you the final word. >> so i appreciate carter an that's a similar type trade up to disney and to mike's commen about using the vertical, we just had earnings so i feel th lack of catalyst for me is better to take a longer needed call diagonal. >> more options action after this take a look. if the feds say it's mor recession than inflation professor is going long. which particular name has hi shouting mine. plus, calling all options. reach into your pocket, grab your phone and tweet us your question at options action if it's nice, we'll answer it on air. when options action returns. 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

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welcome back carter and mike took a look at the jr. gold miners. >> these are the jr. miners, the most destroyed and in fact, they have been lake a pin bal machine. they have been working withi this channel almost perfectl and what i am thinking here is that we're going to move to th upside whether it's mna or whether it's because again, this is a better time to be in gold

than a lot of things i was looking out to september at the 34-39 call spread risk. >> after volatility that et f is back where it started. >> so actually the small miner are handing out performing the larger brethren but we'r looking at the bigger ones today, gdx the first chart is the gdx verses the gd xj, the ones lik new mont and bar rack big heav miners what i see is the beginning of a reversal it's masons, only 7-15 session in the making and another way to draw the lines would be puttin in a trend line in are we through trend line? you see that here on the secon chart. the question is, is this enoug

to make a call where the gdx has already done that we think it is the play here is to look a something that's lagging, look at barrett gold, not through the trend line it's about a 10% wait in the gdx and the thinking is this is up and out. look at two long term charts t put this in perspective thchlt is an all data monthly chart essentially bar rack i unchanged from where it was in 1990 which is shocking independent of that, let's put lines on final chart we have dipped down to a trend line that's been in effect since 2012 we think you get a douns her just as you have seen th previous two times >> all right, mike before we get to your trade, give us thought of yours on the jr. miners her obviously i had the junior miner

position we actually pushed on that because basically we needed it to rally sharply higher than when we initiated the trade an ended up with a small profit o that one as it happens, we happen to hold barrett gold in our fund on th long side, the equity so i'm along side carter here because we're long gold and long tha particular company this is a $28 billion company. there was a favorable risk reward relationship to be had by simple buying an in the mone september 18, '15 call spread. the reason i was looking a that, the time i was this was 50 cents of money and look like i closed 60 cents in the money b the end of the day and that wa only going to cost me 85 cents to 90 cents per share to put

that on so that sets up favorable risk rewar relationship on the long sid since it basically pays 2-1 if you get a rally up to that level and you're risking less than a dollar per share between now and september ex-per ration. we were having a conversatio earlier about rates the the fe and inflation. i think sort of one of the hea line inflationary number that is a lot of people tend to look at, most people see it every day a they're driving past gas stations, the cost of energy inflation numbers next week will look bad but nrnl costs have been coming down so if other inflation numbers are going up and if the price of gold goes up but energy prices are goin down, that's good news for the miners because energy is one o their input costs so if you have your cost going down but you end product going up that's a good place to be. >> okay i'm following tony s far it's been the mike and carter show s. we want you

thoughts what are you thinking >> so we seem to have a theme. we're all looking for stocks that are significantly down on the year looking for opportunities and barrett falled into that, down 30%. one thng that's important on carter's charts is we pull bac to a pretty important level. that bottom he pointed out around 14.5. those are the 2018 highs it's important to pull back an look for this long opportunity and what we're seeing here nowhere the bottom, head and shoulders formation that carte was showing you, these are classic signs of down side exhaustion lower lows but during that tim we didn't see momentum confirm and applied volatility confirm the lows those are really classic signs we for picking a confirmation of a bottom i took a long position here in gold a couple weeks ago and

agree there's a further upside and gdx or any of these gold miners really a leverage pla here on gold i like mike's trade set up o using an in the money debi spread the break even practice on thi is just about 2% higher than where the stock is trading today and he's only risking 5% o value in order to place the bet. more than 2-1 risk reward ratio. barrett gold can reach up to $18 he's going to get two and a half times on 85 cents he's payin for this so love the trading gold and set up he's using. >> okay carter give us you golden touch and final take here on the gold trade. >> well, one thing that is stunning, if you look at tha all data chart, basically th gold mining business is a toug

one. you're digging in hunting an pecking. very hard way to make a living but there are moments when gol and gold miners are the single best thing one can do. and having some here whether it's a stock like this or gdx, we think that's something that needs to be honed. >> okay, coming up next, we ar answering your tweet don't go away, your question could be next.

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because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade oofrments welcome back to options action. our first viewer writes in, have a decent size position in united health group and wonder if i should add more levels. i've owned shares for ten year love the stock cart they are is for you >> well, let's just start with the fact that that's pur genius what do we know about the last ten years? united healthcare is up four fold in the snp and beaten microsoft and apple. it's beaten google so you're o to a good thing there and yo have the patience to stick wit it i would add more, the stock ha just returned to its april hig

and the presumption is it will break out and exceed those highs. you have a perfect north b northeast steady issue goes, large deliberate operating business that looks look its got more to go >> tony what's your technica take here on united health >> i concur with carter becaus not only did we return back to those highs but if you look at the relative forms to th healthcare sector, it's broken up so that's a good sign this is potentially an opportunity t add more before a break out. if you look at value we're expecting about 14 eps growt over the next couple years revenue growth and low doubl digits trading at 21 times nex years earning is a reasonabl evaluation for a name like united health that's bee

significant in cash free flow. >> our next viewer asking with the industries moving higher over the next couple weeks d you think it can sustain progress and what plays woul you recommend to take advantag of moving? mike this is for you >> over the past couple week this thing has been up a whole lot this year actually it's not a lot of stock we can point to up more than 20% and et did have a positive boom out their recent earnings so those things are all good. with that said, it appears to me and this is a question directe more at tony or carter, it doe seem like it might be reaching a difficult level. here's the thing if you benefitted from the move, you have the opportunity t substitute your long equit position with offerings now that earnings have come out and mad them cheaper but i'll defer to them on technical. >> do you want to get in o

that >> similar to the united healt that we're talking about recen highs back ear in april around 227 but the one thing you should pay attention to is not just the absolute price but relativ price which relative t industrial is already broken down and that's a good sign fo this particular stock goin forward. >> okay. well, up next, the final call. be sure to stay tuned for cnbc special, inside jobs diving into every angle of thi morning's employment report an with the shocking number about the state of the economy options action will be back in 2.

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intell i think it's time to get lon exposure with the call diagonal. >> round us out mike >> disney is cheaper than it was in 2019 but next year they wil have higher revenues so i like them >> we will be back next friday at 5:30 p.m. eastern. cnbc special inside job starts now. - [narrator] the following is a paid program for ruvio cordless vacuum, presented by emson. everyday life can sometimes feel like one big mess. but cleaning can make you feel like you're stuck in the past. you need a bulky upright vacuum, a hand vac for your car, a duster, a broom, a stick mop, and a dirty rag. not anymore. say goodbye to the past and step into the future of cleaning technology that will change the way you clean forever.