Last month, Senior Market Strategist Bryan Sapp was a featured presenter at the July 2021 Benzinga Boot Camp and discussed “Using Volatility to Double Your Money With Options” You can view the entire presentation at https://benzinga.wistia.com/medias/lw7w6tndkr

Check back for a full transcript of the boot camp. And in the meantime, be sure to listen to our latest podcast, where Senior Market Strategist Chris Prybal unpacks his AMD call option that netted subscribers a 201% return back in May.

Related Investment Reading

One of the more ominous technical indicators that we utilize as traders is the aptly named "death cross." Often seen as a precursor of negative or muted price action, a death cross occurs when a short-term moving average –usually the 50-day trendline – crosses below a longer-term moving average – often the 200-day trendline. Per Investopedia, a death cross has preceded the most severe bear markets of the past century, including 1929, 1938, 1974, and 2008.

More recently, Bitcoin (BTC) flashed a death cross in June before its sharp selloff. That's why Tesla Inc (NASDAQ:TSLA), one of the original "meme stocks," forming a death cross earlier this month is worthy of closer examination.

Per Schaeffer's Senior Quantitative Analyst Rocky White, we were able to collect the other times TSLA has formed a death cross, and what the returns going forward were. Per the table below, TSLA has formed 10 death crosses, including the most recent one on July 9. Looking at the other nine, the stock averaged a daily return of -1% a month later. Three months later, the returns are essentially flat. Interestingly enough, six months later Tesla sported an average return of 11.7%.

You can extrapolate the details of this table for forever. How much stock do you put in TSLA's absurd price action in the last 24 months, and do they qualify as possible outliers? Tesla has a Jekyll & Hyde history when you compare its first nine years publicly traded compared to the last two. What's perhaps the most prudent takeaway is that choppy price action from the once unstoppable equity could be the new normal this summer.

One "post" of this death cross is more important than the other, at least in Tesla's case. The 200-day moving average has been integral to TSLA since 2018, around the start of the trade war with China. Per the chart below supplied by Senior Market Strategist Chris Prybal, the 200-Day had been magnetic until the fourth quarter of 2019, it then became a springboard. Now, it seems those magnets are acting up again.

On Tuesday, July 27, Tesla stock closed below its earnings day opening price for the third-straight quarter. Despite the 135% year-over-year lead, the stock is still battling its year-to-date breakeven level. Its market cap sits at $665 billion, pulling back from its 12/31 levels of $705.67 billion. All of this is to say the technical hurdles are piling up. And while 200-day went from magnet to springboard awfully quickly in 2019, are similar macro tailwinds in place now that could replicate such price action? It's difficult to tell.

One thing is certain; implied volatilities have leveled off since Tesla stock was added to the S&P 500 Index (SPX) on Dec. 21. The equity's 30-day at-the-money (ATM) implied volatility (IV) of 46.3% is in the 1st percentile of its annual range, pointing to relatively deflated volatility expectations being priced into near-term options. Meanwhile, its 30-day ATM IV skew of 8.7% sits in the 61st percentile of its annual range. Plus, the stock's Schaeffer's Volatility Scorecard (SVS) sits at a high 96 out of 100, indicating it has exceeded options traders' volatility expectations in the past year -- a boon for potential options buyers.

Subscribers to Bernie Schaeffer's Chart of the Week received this commentary on Sunday, August 1.

Today will be busy on Wall Street, with nonfarm payrolls, an unemployment rate update, and average hourly earnings data for investors to digest. Wholesale inventories and consumer credit data will also be due out.  

The following companies are slated to release quarterly earnings today, August 6:

AMC Networks Inc. (NASDAQ:AMCX -- $49.53) owns and operates a suite of video entertainment products that are delivered to audiences and a platform to distributors and advertisers in the United States and internationally. AMC Networks will report its Q2 earnings of 2021 before the bell today.

Canopy Growth Corp. (NASDAQ:CGC -- $19.14) engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany. Canopy Growth will report its Q2 earnings of 2021 before the bell today.

Cinemark Holdings Inc. (NYSE:CNK -- $15.34) engages in the motion picture exhibition business. Cinemark will report its Q2 earnings of 2021 before the bell today.

Construction Partners Inc. (NASDAQ:ROAD -- $33.21) engages in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina, and South Carolina. Construction Partners will report its Q2 earnings of 2021 before the bell today.

Cronos Group Inc. (NASDAQ:CRON -- $7.41) operates as a cannabinoid company. Cronos Group will report its Q2 earnings of 2021 before the bell today.

Dominion Energy Inc. (NYSE:D -- $76.08) produces and distributes energy. Dominion Energy will report its Q2 earnings of 2021 before the bell today.

Essent Group Ltd. (NYSE:ESNT -- $46.24) provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Essent Group will report its Q2 earnings of 2021 before the bell today.

Fluor Corp. (NYSE:FLR -- $16.60) provides engineering, procurement, construction, fabrication and modularization, operation, maintenance and asset integrity, and project management services worldwide. Fluor will report its Q2 earnings of 2021 before the bell today.

The Goodyear Tire & Rubber Co. (NASDAQ:GT -- $15.26) develops, manufactures, distributes, and sells tires and related products and services worldwide. Goodyear will report its Q2 earnings of 2021 before the bell today.

Icahn Enterprises L.P. (NASDAQ:IEP -- $58.60) operates in investment, energy, automotive, food packaging, metals, real estate, home fashion, and pharma businesses in the United States and Internationally. Icahn Enterprises will report its Q2 earnings of 2021 before the bell today.

Interface Inc. (NASDAQ:TILE -- $14.19) designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. Interface will report its Q2 earnings of 2021 before the bell today.

Intersect ENT Inc. (NASDAQ:XENT -- $24.52) operates as an ear, nose, and throat (ENT) medical technology company in the United States. Intersect ENT will report its Q2 earnings of 2021 before the bell today.

Koppers Holdings Inc. (NYSE:KOP -- $30.27) provides treated wood products, wood treatment chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. Koppers Holdings will report its Q2 earnings of 2021 before the bell today.

Lear Corp. (NYSE:LEA -- $169.40) designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Lear will report its Q2 earnings of 2021 before the bell today.

Magna International Inc. (NYSE:MGA -- $84.40) designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. Magna will report its Q2 earnings of 2021 before the bell today.

Marcus & Millichap Inc. (NYSE:MMI -- $40.29) provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. Marcus & Millichap will report its Q2 earnings of 2021 before the bell today.

MEDNAX Inc. (NYSE:MD -- $30.33) provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States and Puerto Rico. MEDNAX will report its Q2 earnings of 2021 before the bell today.

MGM Growth Properties LLC (NYSE:MGP -- $40.83) is a publicly traded real estate investment trust. MGM Growth Properties will report its Q2 earnings of 2021 before the bell today.

ModivCare Inc. (NASDAQ:MODV -- $180.85) provides a suite of integrated supportive care solutions for public and private payors and patients. ModivCare will report its Q2 earnings of 2021 before the bell today.

NeoGenomics Inc. (NASDAQ:NEO -- $47.71) operates a network of cancer-focused testing laboratories in the United States, Europe, and Asia. NeoGenomics will report its Q2 earnings of 2021 before the bell today.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH -- $24.18) operates as a cruise company in the North America, Europe, the Asia-Pacific, and internationally. Norwegian Cruise Line will report its Q2 earnings of 2021 before the bell today.

Nuance Communications Inc. (NASDAQ:NUAN -- $54.90) provides conversational and cognitive artificial intelligence (AI) innovations that bring intelligence to everyday work and life. Nuance Communications will report its Q2 earnings of 2021 before the bell today.

Qurate Retail Inc. (NASDAQ:NUAN -- $11.74) engages in the video and online commerce industries in North America, Europe, and Asia. Qurate will report its Q2 earnings of 2021 before the bell today.

The E.W. Scripps Co. (NASDAQ:SSP -- $19.69) operates as a media enterprise through a portfolio of local and national media brands. Scripps will report its Q2 earnings of 2021 before the bell today.

Spectrum Brands Holdings Inc. (NYSE:SPB -- $83.11) operates as a branded consumer products company worldwide. Spectrum Brands will report its Q2 earnings of 2021 before the bell today.

Stericycle Inc. (NASDAQ:SRCL -- $70.42) provides regulated and compliance solutions in the United States, Europe, and internationally. Stericycle will report its Q2 earnings of 2021 before the bell today.

Twist Bioscience Corp. (NASDAQ:TWST -- $124.12) manufactures and sells synthetic DNA-based products. Twist Bioscience will report its Q2 earnings of 2021 before the bell today.

Ventas Inc. (NYSE:VTR -- $59.98) operates at the intersection of two powerful and dynamic industries, healthcare and real estate. Ventas will report its Q2 earnings of 2021 before the bell today.

Vontier Corp. (NYSE:VNT -- $32.30) engages in the research and development, manufacture, sale, and distribution of critical technical equipment, components, software, and services for manufacturing, repair, and servicing in the mobility infrastructure industry worldwide. Vontier will report its Q2 earnings of 2021 before the bell today.

Looking ahead to next week, economic indicators and earnings reports from some major names will keep trickling in throughout the second week of August, though at a much slower pace, as the earnings season starts to wind down. Some of the biggest companies to report quarterly earnings are Airbnb (ABNB), 3D Systems (DDD),  BioNTech (BNTX), Chegg (CHGG), Coinbase Global (COIN), eBay (EBAY), Nio (NIO), and Walt Disney (DIS), to name only a few. In terms of indicators, investors will be looking ahead to job openings, productivity, and unit labor data. Plus, the producer and core consumer price index are due out, alongside the latest round of initial and continuing jobless data.

All economic dates listed here are tentative and subject to change.

The shares of Zoom Video Communications Inc (NASDAQ:ZM) are flat this afternoon, last seen down 0.1% at $400.26 . The stock is coming off yesterday's 6.9% surge, and earlier today hit a one-month high of $403. This region has acted as a ceiling for ZM since early March, but there's reason to believe a breakout from this consolidation pattern could be right on the horizon for the video chat stock. 

According to data from Schaeffer's Senior Quantitative Researcher Rocky White, ZM just came back within one standard deviation of its 40-day moving average after a lengthy period above the trendline. White's study shows Zoom stock has made a similar move five other times. One month after these instances, the security was higher 75% of the time, averaging a sizable 24.6% return. Should ZM stage a move of comparable magnitude from  its current perch, it could put the equity back within reach of the $500 level -- a region it hasn't touched since late last year. 

Options traders are already on board for a rebound it would seem. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Zoom stock sports a 10-day call/put volume ratio of 4.72, which stands higher than all other readings from the past year. This implies options traders are picking up calls at a much quicker-than-usual clip. 

This penchant for these bullish bets is being echoed in today's trading, where call volume is running double what's typically seen at this point, with 86,000 calls across the tape so far today. The two most popular contracts are the weekly 8/6 410- and 400-strike calls, with positions being sold to open at both. 

While it's still a ways out, Zoom is scheduled to enter the earnings confessional at the end of the month, after the close on Monday, August 30. A quick look back at the stock's post-earnings history over the past two years shows a number of outsized moves, including a 15% drop in December 2020, and a 40.8% after its last second-quarter report. Regardless of direction, ZM averaged a next-day swing of 12.2%. 

A theme we like to address often is the best and worst-performing stocks of the new month. We covered the best FAANG stock for August, as well as a pharma stock to avoid. Now we're shifting gears to exchange traded funds (ETFs), and which ones, if past is precedent, could enjoy some August seasonality.   

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, over the last 10 years, iShares Silver Trust (SLV) and SPDR Gold Shares (GLD) are two of the best ETFs to target in August, based on average returns. SLV boasts an average return of 4.9%, with six of the 10 returns positive, while GLD's average return comes in at 3.3%, with 70% of the returns positive.

Economic indicators and earnings reports from some major names will keep trickling in throughout the second week of August, though at a much slower pace, as the earnings season starts to wind down. Some of the biggest companies to report quarterly earnings are 3D Systems (DDD), Airbnb (ABNB), BioNTech (BNTX), Chegg (CHGG), Coinbase Global (COIN), eBay (EBAY), Nio (NIO), and Walt Disney (DIS), to name only a few. In terms of indicators, investors will be looking ahead to job openings, productivity, and unit labor data. Plus, the producer and core consumer price index are due out, alongside the latest round of initial and continuing jobless data.

The week will be off to a slow start on Monday, August 9, though job openings data is still on tap.

The pace picks up on Tuesday, August 10, with the National Federation of Independent Business' (NFIB) small-business index, as well as preliminary productivity, and unit labor costs data.

Wednesday, August 11 brings the core consumer price index (CPI) and a federal budget balance update. 

Another fresh round of Initial and continuing jobless claims are due out Thursday, August 12, in addition to the producer price index.

Lastly on Friday, August 13, investors will be keeping an eye on the import price index, and the University of Michigan's consumer sentiment index.