and i'm not gonna let that s.o.b. be a part of my thoughts, be a part of my anxiety. he'll have his day and i -- either he's having it now or god's got something else in store for him. but he'll get his. right now on oh a, b retail stocks cannot find a way out of the bok. we have a way with one name likely to find its footing soon. chips, dips, and inflation. and nothing runs like a deer , but could the results trip it up. we have a panel tonight.

let's with the big week with big-box retail front and center. home depot, target, tjx have surpassed the market. what are you seeing and what name? >> let's drill down on home depot. walmart has a new. so does tjx. in itself, it is down 22% from the high whereas the s&p is down only 7%. is a three identical charts. no drawings and no lines and no judgment. let's put one in. what do we have? have converging trendlines and strength that is enough to move

up and out of the apex formation. another way to annotate it, the third and final chart, it follows for the want to call it a cup and handle or double bottom, it is that the element and definition of a turn and one wants to belong on home depot and walmart is back at that former high, and so is tjx. something like home depot has room to run. >> that is an interesting chart. how you setting up on home depot ahead of tuesday's report? it is one f the early once we get early in the morning on tuesday before we hear from the others. >> i think we should look at home depot and little bit separately that we might look at some of the other big-box retailers. a couple interesting things about home depot as it stands right now. it is trading at a discount. not a huge discount but about 6%. 21 times as opposed to 33 times as the average multiple.

the something else interesting. the reason you look at home depot and it is considered more attractive than lowe's is because of the professional customers. 40% of the sales come from professional customers like contractors and by the is interesting to me is that if we take a look at homebuilders, dr horton and toll brothers come the first two are up 30% on the year to date. home depot is up only marginally here you to your to date. 40% of the sales come from contractors. i find it interesting and that is significant so, to me, looking at the name that moves about 6% on average in the month following earnings, i think you want to play that to the up side. it has had a move up the bottom that we saw in may and of course we might feel like

you're chasing it a little bit, but it is year to date performance is not so great. options are fairly reasonably priced here. i was looking out exactly one month after they report in the september expiration. when i looked at that it was going to cost about $4.00. about 1/5 of the distance between the strikes and $20 wide call spread. strikes about $10 a part in home depot. delaney wearden opens up on monday, if you're looking to put this trade on, this is kind of the method we are looking at. if it opens up a little bit lower, enclosed over 330 today. if it comes in a little bit, you might look at a 330 or 350. 355, that would be the full extent of the moves to the upside. another quick point to make about the valuation on home depot is that right now, the

street is expecting earnings to decline year on year and if that were true, and i'm saying that it is true because i think you might have better fundamentals as a backdrop and that suggest. the lesson we saw that was the gf see some of the get the 2009 timeframe. this is a company that has grown pretty consistently over time. >> very interesting stuff. home depot has told us that they expect a year of moderation. anything of the trade? >> i like using the call spread factor. begin to the technicals that carter pulled out. the stocks might start to gap or move higher. it has been stuck in the mud for the last two years. if you look at home depot, there one of the names that got hit by employee compensation, as the wages started rising in the inflationary period, they have the margins compressed. looking for the earnings and see the margin compression and the wage inflation that they are sink it under control and if the stock is wrong, your only risking the call spread. it's a cheap way to play to the upset. which need to get through which is little higher from here and

then you're off to the races and making money on this. like using the call spread to find the upside. applied materials, quarterly results on the 30s. it is about 43% and brian will lay out to wait for us to get in on the run but with protection. how we do it? >> i think a lot of people oh own gross names or tech. it's one of those names that is starting to see sales declined year-over-year or at least start to stagnate. it does play on the discretionary that has a lot to do with the internet, communication, even sort of energy plays and electric cars and chip manufacturing and that area. there's a bit of a consumer discretionary place. there's some risk that we talked about here but the i play to the upside is fantastic on the scott and obviously, the reason why the stocks perform

so well this year. i want to continue to hold the stock but are looking for protections. the earnings when they have missed, you can see a 3% or 4% earnings to the downside and so, in that sense, want to stay protected and i want to use a spread to do that. this way i can stay in the name and as a starts to roll over and the growth is starting to roll over in the last couple of weeks, you could use the protection. said the september foot spread, i'm looking to pay about five dollars per zero here. the max payout is about $10 on the trade and the breakeven is just below the 135 mark there. that basically protects me for basically two thirds of the downside, if the earnings picture is not great. this is a play have been using for a lot of the chip names all the way up and into the earnings place. it is a decent protection on the downside and i can write a backup to the upside if there

has been a mini correction for the gross names there. >> we have the trade. carter, you have a chart for yes. >> quite similar to what we have for the top of the hour. the smh is down. you can see the well-defined trendline there. that is another 5.5% or 6% this year. thinking lower day today or week over week. >> mike, what you make of karcher's chart and brian's a trade for amat? >> they tend to be a little bit martin volatile than other stops and the options premiums tend to be a somewhat more elevated. when you look at the two year history in applied materials were going to the lower end of the rain. it is more expensive to hedge going to earnings right now using the one month options the way that brian is. if you don't have exposure to the name and you are inclined to make a bullish but, and

you're worried about the choppiness, we saw the s&p rise before falling 150 basis points. things are moving around here. the call spread similarly is relatively inexpensive but i think that if i was going to go into applied material earnings, my inclination would be to do so in a risk mitigated way and that is a good way to do it if you own the stock. >> amat shares were down during trade today. the nasdaq is closing the week down nearly 2% down and back to back weeks and this is the first time all year. if you're looking to take advantage of the volatility which has come rushing back into the space, what is going on with the tech trade? >> you heard mike talking here. it is when you back 100 basis points plus or minus every few days. feels like the volatility is picking up. but if you look at the

volatility index on the nasdaq, those are relatively cheap and historically below average is. to me that says options traders and the stock market is inflating. there is definitely some riskier to the downside but the fact that volatility is compressed has made buying the calls a cheap way to get into this market and maybe the risk because i'm risking the valley of the value of the call option and i want to play the upside, i'm going to buy a call. in the september expiration, is trading for just over $10, that is about 3% or so. i know that is pricey but given the amount of movement that we are seeing in the nasdaq which is more volatile than the rest of the market, this seems like a cheap way to play back to the outside. there still might be some

upside room but we are hearing some risk. we are seeing the market selloff a bit and look at the 10-year note. we are pushing back up toward the 4 1/4 mark. when we see the interest rates compress and move lower on the 10 year, the nasdaq has been one of the areas of the market that is benefiting greatly. we talked about that last week or maybe the 10 year is not going to go up anywhere from here and if this is the case, i get to play to the upside and the nasdaq will be the beneficiary of the fact that the tenure cannot get higher than that. >> when you're looking at the chart, what patterns do you see that help you predict what might be coming? >> so, as would be expected, the correlation is exceedingly high at 90+ percent and the pattern or set up is very similar. we look at the chart it is the same circumstance of a well- defined uptrend in effect and now after trying to break out,

we have a faltered and that the presumption is that the current faltered down 9% has room to run and will get us down to trend but it gets down to beta in many ways. we know that the nasdaq dropped 38% and the s&p dropped 27% on the way back up since the october low, it has doubled the performance of the sp why and it is more on the way down and more on the way up and the current dip, it is 9 versus 3.5 with the s&p. >> for everything options action, check out her website and newsletter. there is more coming up after this. calling all

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eligible xfinity rewards members can get up to $100 off nfl sunday ticket from youtube. sign up for xfinity rewards now. 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 to action it is not just big-box retailers reporting.

it is also deere. the stock is flat for the year. which way should he be trading? let's start with the technical set up. what you see? >> caterpillar has had results and it was a heavy up thrust and gap up a percent or 9% with response to the quarterly report. look at the comparative charts and then we will look at deere on its own. going back to 1980, there's a big difference between the two great american icons. deere has basically doubled the performance . now look over the past 18 months, it is reversed. deere is at the languor to some extent and i think you play for what happened with cat now to happen in deere. let's look at two john deere charts. cat was set up like this and broke out to new highs and let's put in new lines and what we will see is the perspective

set up for a similar type move. deere, the real long term winner going back to 1980, but recently, it has news pending. cat had news already out. cats broke out let's play deere for similar response. >> what is the trade? how are we going to play it? the people been watching the show know that i have light deere for a long time. it's one of the holdings of the equity side. and has had quite a strong move out recently and i think that makes it obviously difficult to chase for a lot of people. we've seen the uptick in volatility and the sharp move since the tail end of may, i think it is difficult to chase it here for that reason. but the fundamentals remain strong. the company is trading around 14 times. one of the reasons we've seen the significant outperformance of deere is consider how it has performed of the past five years.

revenues are up 50% over the time frame but the earnings per share are up threefold. 200% increase over that period of time and a lot of that has to do with the supercycle on the agate front. deere has more exposure on the ag front. a lot of the going into earnings and taking and then to the fact that options trainings are not really that high, i think that the play here once again is to use the call spread. you will notice that we often get into these themes of options trades that exist and that is because that is what the options market is giving us. looking up the september. the $40 wide call spread, cost about $10. the 3:1 playoff if you have room.

i think given the move, if you don't already own the stock, this is probably the way to play it on the long side going into a catalyst like this. >> coming up next, fashion faux pas. ralph lauren trending lower this week. how should you manager for that trade now? we have the luxury look back ahead. two.

welcome back to action time for a luxury look back. ralph lauren is done a percent and we are putting this one in the red but before we get to how to manage the trade, let's dig into the technicals on the price action. what you see here? >> so, we are looking at when you put on the trade, whether it is based on fundamentals or technicals or looking for the inflection point, instead of breaking out, did the exact

opposite. dropped 7.8%. if the premise for being in the trade, breaking above the line has come and gone, there is no reason for the trade at all. i would walk away and move on to the next. >> fair enough. how are you managing this trade? >> first of all, that's a really good point. the first thing you have to do is evaluate the reason you are in the trade to begin with. let's take a look at earnings. the earnings numbers were actually fairly decent. they continue to have some pressure in north america but asia is looking good. pretty good in europe. dtc business seems reasonably strong and we have big news in this space this week with tapestries purchase and there is still some demand. the difficult part is that ralph lauren is trading at a slight premium to its peers. that is will use options to begin with and folks who were watching remember we put it on

a diagonal. one of the things you can do is that you can cover the short side if you want to stay in the trade or even rolled the short side down and out so that the call was essentially worthless right after earnings, he could have bought it back for nickel and then sold and then be in a calendar spread and also taken in some additional premium offsetting the less than $4.00 or so that we spent. once you get to a level of support, if you are still interested in owning the name is to work your way into a risk reversal and offset the premium that you spent when he first got into the trade. were scheduled up owning this stock at a significant discount to where it was trading before earnings. those are the some of the things you could look to do. i am not selling any downside in this or anything else for that matter. >> interesting take. we know that there was big news that made us expect or not

expecting around the time of those earnings. coming up next, your tweets and the final call. i need it cool at night. you trying to ice me out of the bed? baby, only on game nights. you know you are retired right? am i? ya! save 50% on the sleep number limited edition smart bed. plus, 36 month financing on select smart beds. shop now only at sleep number.

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that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. welcome back to action our first fan asked, cardinal health has sold support above $90. how can we profit over the stock being stuck between $90 and $95. >> i'm not interested in selling anywhere but cardinal health is one i have been very successful selling flips. don't think there is a ton of risk in the downside of the stock like this. >> and now that disney has broken up after earnings, do we see it reclaiming 100? how do you view the 95 calls for march 2024? >> we own disney and our fund

so would like to going into earnings. i don't like the way traded today. i like the five-year looking at calls to make the bullish bet and you are giving yourself a lot of time to make a bullish play here if that is what you want to do. >> at a time for one more. carvana has been very volatile lately. we see this one going? >> talk about a big winner that has gone down 30%. i would buy the dip here. fill in the gap. my hunch . >> that chart is nuts. it is time for the final call. >> you have shorts, press them, if you don't, get some. brian? i think you broke up there a little bit. sorry. >> you say things are breaking up so you need to own the puts or spreads here. things are cracking up.

>> that doesn't for action we are back next friday at 5:30 p.m. eastern time. taking the stock starts right now. >> it's every parent's worst nightmare. your child is born with a deformity -- a face no one wants to see. in poor countries, over 200,000 children a year are condemned to a life of pain and rejection, hoping for the miracle that will change their lives forever.