>> in the core of nevin shapiro, he's someone that looks out for himself. and at the end of the day, if things aren't going his way, it's, "screw everything. i don't care. it's about me." you know? and that's not the nevin that you know? and that's not the nevin that i thought i knew. right now a close of a holiday short week as investors worry that the fed may not be done hiking rates. i am melissa lee.

a mixed job report closes out a losing week for the market as investors fear that the fed might return to hiking rates. all this happening as a new earnings season kicks off. before we get to carter's charts what are your takeaways from the holiday weekend? >> a very light week. there are those who think there is only another fed rate hike coming up. although the jobs report today helps them feel like they are getting the job done. we still with 3.6% unemployment and inflation around 6% they will probably have to put in another 25 basis points.

not that it makes that much of a different story but it resounds of what they are trying to preserve. >> i don't know necessarily they will be that hawkish. you look at some of the things they are doing and the weakness of the dollar -- unemployment rate is still good. the dollar is weaker. i think what the market is saying is that the fed will not do enough to raise rates. the market might just keep chugging higher here. maybe it's time for commodities to bottom out. i expect inflation to stay above 2%. >> do you think they stuck the

landing? >> yes because they were not able to raise rates high enough. i think we will still see inflation in the market place. when you look at volatility as low as it is right now, i think they have done well. >> it's not my area but i would say they almost never stick to plans. my hunch is it is not going to be pulled off so either somehow the market is ahead of the facts . that is like the u.s. dollar. the total value of all equities traded, the currency market is

double that. they even had any year yields to 10 year yields. we have lots of charts. >> yes, let's go through. >> so the dollar had a bad week. we know that the average has rolled over. also failed to the penny at that trend. we also know that rates will imply that we broke out from this conversion trend line and

we are basically still not at the high. will they remain the highest? what we did see interestingly is that energy related instruments whether it's gas or oil, you can look at the oih, all having big weeks and my hunch is that this is important and it speaks to value. >> let's stick to energy. now we speak with mike. >> i was taking a look at halliburton. we mentioned this last week when someone asked us about natural gas which of course did not actually really rally today. if we do see cooling demand

that could increase a natural gas demand. halliburton would be the way to play it if you choose. they are heavily exposed to domestic production. the company is cheap. if they can live up to the eps that we are talking about. basically taking a look at capital return in the neighborhood of $950 million per year between basically share purchases and dividends. i think they will report earnings on july 19th. right now options are as cheap as they have been since the pandemic. i was looking at the 3440 in september. i was looking at that earlier today. about $2.40 per contract. your mileage may the -- may

vary a bit. i think if you are inclined to be a long national gas, this is the way to do it. >> halliburton has underperforming shown recently, but a big day today. >> brian, what do you think? >> the fed might not stick the landing on inflation. i love halliburton and i think it is a goodbye. a good buy. >> let's look ahead to next week's irving season. brian has been taking a look at

one name with a big connection to the reefs. >> blackrock is one that trends with the rest of the financials but seems to outperform others despite a big portfolio. i think this is a stock that you can own. they do have earnings, and they are coming up. i don't think stock will run away to the upside but i think there is some option premium. you can collect three or 4% premium on your money. >> what kind of relationship does blackrock have withioyr, if any? >> it tracks closely to other

asset managers and such. >> how does the chart look? >> a pair of twos. >> oh, how does that make you feel brian? >> that's why you can use your options. >> people have often said sell in may and go away and of course with options it is something that can create a tailwind if you sell premium because you are collecting a little bit of that every day and i think a day like this one is one of those names that you might look at doing that. >> let's turn it now to another surging space. the tv tray. -- the ev trade.

what have you seen brian? >> we talked about tulsa -- tesla last week. when we got the numbers on the vehicle production they were quite good for a name like rivian . a lot of option at tivoli trading. i think there is a way to use options to your advantage. it almost feels like a stock explosion and i would use options instead of owning the stock at this point. use an upside call to continue but also offset some of the cost. looking to trade out to september. i actually collected some

premium on this portfolio. when you look at rivian, i think they have turned the corner. you see growth in their vehicle production and it is a very nice luxury car. i think a $20 level seems like where the stock hangs in for -- >> let me say this. this is important. i never have conflict of interest. the price i did -- the high was 2563. it moved down and i will stick with this. it is feeling impetuous and euphoric. you also said it was something quite horrible, a mean stock.

we heard it is the best selling electric truck. a lot has happened quickly and a lot of on-field gaps. >> mike, do you own a rivian? >> i do not. brian, you have a tesla and we have one of those. you are not buying the stock of the product that you buy. i find that interesting. i will say that mean stocks were off and selected because they had high short interest in this one has a pretty high short interest. about 13% or show. these big gaps that we see have hallmarks of a short squeeze. it could obviously run further to the upside but on a value basis. i am not crazy.

>> for more check out our website. much more action after this. >> we are looking to upgrade where we sit with delta airlines and taking out options insurance . >> options action is sponsored by td swim sponsored by ameritrade.

welcome in two options action. let's check out a couple of other reports. united health is a big underperformers. and mike, you said you would play this like an insurer woul . what does that mean? >> insurance companies sell premium to make money and of course option traders can do that as well. i want to point out that united health is one of the most epic growth story stocks that we have seen over the past 20 years. it launched from a holding of mine and if the cash flow generating monster, but when you are looking to generate premium you are looking for stocks that are not likely going to move a whole lot in

either direction and united health is one of those names. this is a name that moves less than 3% on average. right now we are getting about 25% implied volatility for the front month options so there are different ways you can do that. you can call credit spreads. i was looking at a call credit spread and i was looking out to july. the idea was selling the 470, 480 call spread. that is an attract amount of premium through a relatively short period of time. an important point is that this is a trade whether you own the stock or not. it was a covered call and the reason is that if you happen to get it wrong you do find the risk of your trade in the event

that the stock does get a sharp spike but we don't typically see that in earnings on united health. >> carter at one point called this a godlike chart. where does this stand now? >> i was going to say that maybe god is snoozing here. to mike's point about being godlike this is pure idiosyncratic growth. it doesn't care about war or insensitive economic activity. it is one of the greatest operating businesses in the market and it has now sort of stalled. my hunch is to take advantage of the stall because ultimately it will go higher from here. >> when do you get concerned? >> you are getting to it meeting do we break through a stall to something else? for now i think you did the the

fit of the doubt meeting after a steep, un-correct move a consolidation is working off the condition. is it just the pause in refreshing or what is the former and not the later. >> delta. now up nearly 50% and with earnings on deck, brian has a way to play it if you think the stock has reached its cruising altitude. i think when you look at delta the consumer discretion is starting to feel a shift where there is a bid. a lot of stocks work off inventory.

it is making them a profit margin that is better so i think delta falls in that category. this does feel a little bit like a different thing. i would be looking to sell premium. a lot of people talked about how you have five at half percent yield and why don't you cash it? >> well i can get cash and more. i get yield on my cash. also delta has gotten through a level. i think the $45 strike level going out to september, i collected enough premium which is above 12%. i think from a risk and reward conservative type investor this

makes a lot of sense. >> mike, are you taking the trade? >> a conservative investor selling things on airlines. look, a lot of these names are quite cheap. delta does do a good job managing the fuel cost side. as many people know they bought their own refinery several years ago. this thing has traded seven times. it's quite incredible and of course if we do start to see sharply higher energy prices then that could be a headwind. >> this seems more deliberate and measured momentum. i think you stick with delta. >> up next we go through meta- and mike updates his trade for a while. how to manage that.

this is when options action's return. >> options action is sponsored by english swim by td ameritrade. hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! the please ignore that.l, in thinkorswim®. td ameritrade. award-winning customer service that has your back.

thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. 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. welcome back. mike laid out a trade on meta- surging 18% with recent help

from its new threads launch. >> you want to roll up those 245 choices or keep your profits. roll up and out. >> up next we have tweets and the final call. >> options action is sponsored by thinkorswimsponsored by ameritrade. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. (woman) what would the ideal

weight loss program look like? learn your way. not theirs. td ameritrade. no hunger, no cravings, no isolation, more energy, lasting results, and easy. is that possible? it is with golo. these people changed their lives with golo without starvation dieting. whether you have 100 pounds to lose or want to shed those final 20, try golo for 60 days and never diet again. (uplifting music) weeknights on cnbc get the stories behind the numbers. and the people behind the business. from wall street to k street. also main street

welcome back to options action. our first fan asks this question . i bought eight sophia october 5th calls at $.78 in may. i sold two. how should i handle this? >> sell the strike calls.

>> sophia doubled. -- sofi doubled. >> our next fan asked that earnings are up. first idea is to buy the 50 $15.07/28 p to cover. mike, what do you think? >> you may want to push it out an extra week or two. then you get to hold the stock. the three day rule we talk about. give yourself time to digest the news. >> it is time for the final call. that went fast. michael, back to you. >> look like insurers do.

watch call spreads into september. >> and brian? >> collect more premium. >> carter? >> put profits into energy. >> we will see you next friday. a special tech check starts right now. >> cnbc. live ambitiously. - [narrator] the following is a paid presentation for the premium mattress topper by do dormeo. one of the fastest growing sleep companies in the world. what's captured these people's attention. - whoa! - oh my god! - wow! - that's it. - wow! i'm impressed. - whoa! never would've thought. - never expected that. - it did, it feels like it's a brand new mattress. - yeah. - [narrator] it's not a new mattress that creating this reaction, they're lying on the same old mattress they've had for years. it's time for you to discover the premium mattress topper by dormeo. we believe, it's the world's most comfortable mattress topper.