>> 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. the biggest week of earnings season. we will check out the action ahead of the results. and industrial search. how to handle that. >> and to look back and ahead at the china challenge. is it time to bet on beijing,

or bale.? >> its options action. you guys get to work remotely tonight. i'm the only person on the desk. >> the excel k is up about 40% year to date. after a run like that, good the market leadership of technology be fading? >> it is dominant in terms of weight and the big names. the concentration we have had with us and it is important. people say the top names are good. it's 20% concentration. we know there are new highs. the sector itself is now just back to and slightly above its size for the bear market in

january of 2022. then consider this. is it a double hop? at a minimum, before you can see the height you can ack away. i am seeking the opportunity to find this are slim. with the sector back to its high google is 20% below its high. you go is interrogation's, it is big tech here is the google chart. it has all the elements. 20% below its former highs. so you like google? >> on alongside. >> okay. mike, what is your thought? >> i agree with that. it is difficult having seen how

far technology has come this year to be thinking about buying anything in the space. alphabet is still reasonably placed. if you take a look at it, it's relative to pre-cash flow it's about, is cheaper yet growing eps at a much faster race. a. to microsoft and meta-, two other companies that have done better, since 2018 they have grown in comparable amounts. alphabet has been growing in free cash growth. i like it going into earnings. if you're looking for something of a value play you say this is it. they are not many value plays in the space.

what you think of what we have just been talking about? franco i think is interesting. when i looked at this there are two sectors that i like the over in. when is x lk. ds okay is on the upside and google thinks we are overweight. i think it has some valuation that is happening. i believe this will break to the upside. >> okay. let's turn to another group with a bunch of names to report next week. you have coke, the golden arches and mcdonald's climbed more than 12%. that's nothing compared to the

tech area. 12% though is pretty good. there is a trade that he thinks these trades could double. >> i will make this observation. when you take a look at any area of consumer discretionary spending, it seems like we are seeing services hold up a little bit. it is had a good run. the only anxiety when i look at the name is the fact that is trading at a high multiple. we were talking about alphabet. what is interesting is that while the stocks might be expensive to its own history the options on this one or not. if one is inclined to make a bet that sets up the opportunity. options have been cheaper rate around the bottom of the barrel

going back about seven years. always look at september. you can buy those for five dollars so you are risking a small percentage of the stock price get anything two months till expiration and get some upside participation. and if you don't get that or we see the market rollover you are really not taking a great deal of risk. >> he makes a great point. option premiums are relatively low to the last few years. so it seems like a cheap play and we talked about the shift. if the automobile industry started mcdonald's might be one of them. here is a software it is in the discretionary space. >> yes. we have a defensive restaurant.

mcdonald's is almost in perpetuity. to reach ties in the first days of may and three months later we are at the same level. >> that is a good set up for breakout. >> okay. that's an interesting call. okay. let's go to automobiles. there has been a lot of talk. let's not forget about legacy auto names. you are looking at one of those. which is it? >> of gm, you heard from kathy woods. she sold some gm. the stock took off a little bit. i am kind of bullish on this and

doing a risk reversal. not going overboard i think there is something toward kathy wood. i would like to take the opposite side. if i'm going to limit my risky automobile industry gpm good cell for the young. this would have been running. when earnings come out the stock has not been moving. is just over six% a couple of times in the last five years. so i'm going to call a strike. over guy 39 on the call. is little over a buck. if i am wrong on this, i think those stocks go a lot higher. again some of the big names that have been a high flyer and

we take the option and is elevated into the earnings that are coming up. >> what about general motors and the option straight? i have the option straight as the way to do this. we know what happened to general motors the first time around, it went under. this is the new general motors. i fielded 2010. what i want to annotate is that you have the plunge, covid and then the search, post covid. it is back to where was. the stock is at the same price as every other ipo. new shoes for a background company. i don't see the way forward as an interesting investment. >> mike? >> first i'd like to say that i like the trade structure.

if i have volatility a lot of the trades we used to talk about and over the preceding weeks have been long premium trades. three things can happen. the stock can go higher, sideways or lower. in two instances this would be an profitable trade. this is one that has a higher probability of six us if it winds. i think it is an important reminder that in general we do like to sell premium when we get the opportunity. it is not moved in earning so this trade structure is something i like. >> miles, what you think? >> i picked those strikes because it was at the $40 level on the ups and and on the stock. i am selling this and i picked

it up for that reason. i want to look at some of the technical levels and then pick my strikes. >> okay. we will take a quick break. check out our news site and letter. there is more options action. >> still to come, industrials on the rise. find out how we are setting up to swap power management. 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.

so, you've got the power of xfinity at home. now take it outside with xfinity mobile. ♪♪♪ like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only 30 bucks a line per month. that's hundreds in savings a year when you wave bye to the other guys. no wonder xfinity mobile is one of the fastest growing mobile services. you really shouldn't walk out the front door without it. switch today at xfinitymobile.com. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help!

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!! please ignore that. td ameritrade. award-winning customer service that has your back. welcome back. we are inching closer to the busiest week of earnings season and now we are going to hone in on a group, industrious. up five% over the past month outperforming the bull market. two names ahead of key results. the chart master is here to help us set the table. take it away, carter. >> okay. so a sensitive area of the market and it is industrials and

the center makes all-time highs. now it is not all areas. let's look at some charts. this is the etf. we have just now moved to new highs. compare this to the next chart. this is also making new highs and what is interesting about this is the third. this is road and rail. the first one was machinery lake road and rail we have to play this for a catch-up. one is so good that it s bad and so bad that is good. 3m, everyone hates it. they have all sorts of problem fundamentals. yet how much of that is before the financial crisis crash.

on the other hand it is too expensive. it's a cell. >> okay. trading ahead of the report. that is so bad it's good according to carter. >> it is earnings, this is when stocks move, when you get earnings, in this case of 3m the news is the liability. without some recent bumps and we heard conversations about a settlement with respect to these forever chemicals. the liability for them includes 3m and dupont. i don't know that number is where the liability will in. if it did, that would be

remarkable when it is running to a huge discount and catching a falling knife is difficult. we did see any positive news could create a new possum. the way to play this one in a risk mitigated way would be to use false spread. it would cost you $2.75. those who follow the show knows that when i look at these cause him looking to spend about a quarter between the spread or less. slightly higher is justified because we have the battles in earnings and all that liabilit . >> your reaction to that trade? >> i think it's right.

it is so bad that is good. use the call spread. play to the upside. this chemical area has been beaten down. in this area could push the upside. it's an interesting play. >> okay. one more industrial name is eaten. 30% this year. this one might not be able to grind higher. brian? >> yes. i have a major in chemical engineering and heat and manufacturing in the united states has had a lot of big play . also other countries are coming into the u.s. to look for manufacturers. there is a big play on data centers. this seems well over done to the upside and it is about time for a pullback.

i am looking at a foot spread down to 200 feet and selling a 190 foot. this is over eight dollars. 4-1. the risk reward is there to take the shot. this is one% of the value of the stock. of warning come out and move to the downside and profit taking happens there is a high probability to play on the street. >> if you open this and own the stock you good hedge your exposure going into earnings. it is not a name that is moved materially to the downside following earnings over the past several years. you could pull back three to five% area. that puts this spread and

covers it. it's not crash protection. it's a good company with the big run maybe it could take a step back or pause a little bit. >> i think we broke your charm. what you think? >> so sometimes, if you describe sequencing a thing gets so done and it is the reciprocal. it is overdone to the upside. all uptrends are punctuated by dips and corrections and selloffs. it is due for one of those. >> okay. thank you very much. up next, a china check in. how brian manages his trade from last month. don't go anywhere. more options action is coming

your way. >>

to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming back. with golo, i've not only kept off the weight but i'm happier, i'm healthier, and i have a new lease on life. golo is the only thing that will let you lose weight and keep it off. who loses 138 pounds in nine months? i did! golo's a lifestyle change and you make the change and it stays off. (soft music)

>> welcome back. bradley data trade on the epic side china large cap etf. they

are down five%. one week out from expiration how do you manage the trade? >> we look at this and we talked about the weakening dollar and when i look at that i look at brazil and china and see how they respond. china is stuck in the mud. maybe it kind of sticks around here. it is an emerging market. i would close it down. i would use a cause writer call to the upside and a 50-50 in india. i would play the upside and say i would trade toward and emerges area. >> okay. are quick break. then your tweets and the final call. >>

you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. 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℠.

welcome back. the first fan as what you think about dr pepper and earnings coming up? >> brian? >> play the upside. it might be bottoming. >> and then how do we feel about the dollar calls on twyla. there is a buying point at about $60 per share. what is your thought there? >> three things to think about. went to i like this. give yourself time and you are in the money. consider selling along that long october. >> and one more tweet, can i buy leads on ali baba? >> yes.

they closed at 92. the hundred is about $13. 100w113, that was the beginning of the year. you have the whole year left to get there. >> okay. carter? >> sometimes things are over done. 3m is judged down. >> okay. brian? >> thanks for working hard at the desk. dead money on gm. take the premium and leave. >> i miss you guys i'm all alone here. mike, your turn. >> i like mcdonald's. the options are cheap. by a call and i also like google that is going to be reporting. >> an interesting week ahead.

a lot of earnings are coming up. options action will be back next week at this very same time . that does it for us. we will see you next friday. - [announcer] the following is a paid presentation for emeril's all new forever pans, sponsored by tristar products incorporated. - emeril lagasse here with the most innovative pans i've ever cooked with. they can sear like stainless, caramelize like cast iron, and they have a super non-stick surface that will never lose their non-stick coating. introducing my forever pans. - [announcer] forget about non-stick coatings that don't last. the problem is they have a single layer of non-stick that quickly wears away with everyday use. - the pans say non-stick and they work great in the beginning, but then as time goes on,