Jessica Inskip, Stockbrokers.com director of investor research, joins 'Power Lunch' to discuss the megacap tech earnings season thus far.

A market analyst has identified a long-term bullish trend for Meta Platforms, supported by the company's weekly moving averages. Despite this positive outlook, the analyst notes some short-term technical warning signs, particularly a bearish divergence in the relative strength index.

To manage potential volatility around earnings, the analyst suggests a defined risk options strategy known as a short iron condor, which benefits from Meta's price remaining within a specific range. This approach aims to balance risk and reward while protecting against significant price movements outside the expected range.

Trend is bullish on Meta for the long-term

The snazzy animation says it's a dom chew. What are we navigating in the market today? It's the main event coming up here, right? Meta platforms, Microsoft, Amazon, Apple, the mag four of the mag seven coming up. So let's turn now to Jessica Inskip, who's gonna take us through what exactly she sees about the big cap earning season and where the opportunities are. Jessica. Yeah, absolutely. I'm looking at meta. The options market is leaning modestly bullish, but technically there are warning signs. So what I'm doing is I'm threading the needle dom with a defined risk strategy that benefits really from range bound volatility. Even though volatility is subdued, agree with Steve Sosnek, as he said earlier, I still expect it to collapse. So to define those ranges, I like to look at the options market. Right now it's pricing about a $40 move, which is about 5.6%. That gives my implied range 670 to about 760. But option sentiment is modestly bullish, whereas in the technical side, I see just a couple of bearish flags. So the trend is bullish on the longer term. I like to look at the 1326 and 40 weekly moving averages represents one, two and three quarters worth of prices. That tells me this is still a bullish trend. So investing in it long-term, but having a trade here for earnings. The 40 week moving average is actually my support at 681, but that bearish divergence that I'm spotting is actually from the relative strength index or RSI. Meta retested its February high of around 740 on June 30th. So that's my resistance, which creates my technical range between 680 and 740, which is within my implied range. So my trade structure, I'm going to create what's called a short iron condor, Dom. Oh no, take us through what a short iron condor is. That was a Robert Redford movie. Iron condor. Oh, it's three days of the condor, sorry about that. Go ahead, Jessica. It's all right. It sounds complicated, but it's really not. All we're doing is we're just defining our ranges. So I'm selling a 760 call. I'm going at about 38 days. You could do this this week if you want. It's just the risk reward structure is gonna be different. So I sell a 760 call at my upper limit and my lower limit is where I'm gonna sell my put. So at 670, that creates a short strangle. And that's really the driver of an iron condor, a short iron condor. The way that we create a condor is you really just add protection, which is further out of the money legs. So I'm buying a 780 call with the same expiration and a 650 put with the same expiration. And all this does, if it doesn't stay within my range and it drastically moves in one direction or the other, I don't wanna expose myself to unlimited risk potential on the upside or substantial on the downside. Altogether, I have a premium collected of about $946, which makes my max loss about $1,054. That's a better risk versus reward. So I'm getting nearly a one-to-one-ish risk to reward ratio. So it's a defined risk strategy that benefits from a volatility collapse and meta staying right between 670 and 760.

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

Middle East Conflict

Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Washington

Global Tariffs

Trump officials suggest potential tariff truce with China

Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

Ukraine Invasion

Deadly Russian air raids hit Ukraine as Trump warns of sanctions

For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Jerusalem

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

France leads UN talks on Israel-Palestine two-state solution

Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

Russian air strikes hit a prison in Ukraine's Zaporizhzhia, 17 killed

Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

Trump gives Putin new deadline to end Ukraine war

A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

Gunman kills police officer, wounds others in Midtown Manhattan

The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

Suspect pleads not guilty in Walmart stabbing attack

The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

Gunman kills five at busy Bangkok fresh food market

Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

Thailand and Cambodia agree to ceasefire

Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

Food arrives in Gaza after Israel pauses some fighting

Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

U.S.-China trade truce extension seen, may ease way for Trump-Xi meet

A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Riedlingen

German train derails, killing at least three people

Israel has agreed to limit fighting in parts of Gaza and would allow more aid into the region, but both moves are facing criticism for being too little too late.

Israel announces daily pauses in Gaza fighting as aid trickles in

Abnormally high temperatures combined with heat and drought have fuelled destructive wildfires in parts of Europe, forcing thousands to be evacuated.

Athens

Heat fuels destructive wildfires in parts of Europe

Michigan officials say they will file terrorism charges and 11 charges of assault with intent to murder against the man who allegedly carried out a knife attack at a Walmart on Saturday. Lana Zak reports.

Garfield Township

Suspect in Michigan stabbing rampage to face terrorism charges

FAA investigators are in Denver after passengers and crew aboard an American Airlines flight were forced to evacuate when a tire blew during takeoff and the plane's rapid deceleration caused a brake fire, the airline said. Elise Preston reports.

Denver

Passengers evacuate burning plane in Denver

President Trump announced Sunday that the U.S. and European Union have come to a trade agreement after high-stakes meetings in Scotland. Weijia Jiang reports.

Edinburgh

Trump announces trade agreement with the European Union

Israel says it will now establish secure routes through the war zone in Gaza so aid convoys won't be shot at or looted. Elizabeth Palmer reports.

Tel Aviv-Yafo

Israel says it will establish secure routes for Gaza aid

U.S. President Donald Trump played golf Saturday at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the American president.

Protesters in Scotland take to the streets to decry Trump's visit

Following four days of border clashes which have left over 30 people dead, the two sides have agreed to Malaysia acting as a mediator in the conflict.

Thailand, Cambodia to meet in Malaysia for ceasefire talks

Protesters gathered in front of the U.S. consulate in Edinburgh to oppose President Trump's visit to Scotland. Mr. Trump plans to host the U.K.'s Prime Minister Keir Starmer and the President of the European Union, Ursula von der Leyen, for trade talks at his personal properties.

Demonstrators protest Trump's visit to Scotland

The Israeli military said Saturday that it will resume aid airdrops into Gaza and open humanitarian corridors for United Nations convoys amid increased international pressure and accounts of starvation-related deaths in the territory.

Breakdown