live from the nasdaq market outside of new york city's time square, i'm melissa lee. what is really driving the action here? josh brown, you're sitting in front of your screens. around noontime or so something turned around in the market. spain seems like the answer. >> today the narrative is that spain unveiled a budget and it was a lot more amenable to what they thought northern europe would approve. there's pent up money. that gave them a reason to buy their favorites. they came in and did just that. it's another situation where flows are trumping fundamentals because if you looked at any of the economic data this morning, there was nothing to like. literally nothing to like starting from durable goods, gdp. i think people have money to put to work. today they said, spain's good, let's buy. >> i agree with that. people are looking to jump in on any positive news out of europe. i think underneath that are the technicals that you have to pay attention to here. the market's giving you these

strong levels of support. today it was right around the 1425, 1428, 1430 level. we hit a low of 1433. when we held that level i think that coupled with spain had a lot of people coming into the market so, again, to the up side we went to 1450 on the s&p. i think the market wants to tried to 1500. >> in terms of the technical support, is that backed up in the options markets? >> sure. the vol in volatility is picking up. the qe 3 announcement went straight up, then we went sideways. in the last few days the interday volatility has picked up. we have a day left or a day and a half as of noon today of the quarter. we were debating this earlier about what sort of window dressing. i thought i already read those spain headlines about budgets earlier in the morning. so to me that koob good old-fashioned window dressing mark them up in the quarter end. >> let's bring in somebody who's been active.

brian kelly joins us on fast line with his take on that news that we got from spain. anything new here? doesn't sound like it. >> i'll tell you what was new. it came at 12:17 there was a headline today that ali rend, the vice chair of the e.u., economic affairs commissioner said that what spain has done went beyond what the e.u. had recommended and that's when the market really started to take off and the implication is that spain basically agreed to a bailout without agreeing to a bailout. so the door is open now. they've done everything that the e.u. has asked, read that as everything the germans have asked them to do. so now you've taken that tail risk off. spain will probably ask for a bailout sometime between tomorrow and october 21st. that's what the market's expecting. that's where i really think you saw that risk on trade happen. >> b.k., it's karen. let me ask you something. hasn't that news about spain been there for several weeks? why is this additional news

today? i understand what you're saying about a little bit of marginal positive news. the markets rallied a lot on spain getting a bailout. >> except for the fact that they said the important thing to me is that they said it went beyond what the e.u. expected. so you don't have to worry about them asking for a bailout and then have spain come back and say, here's the condition at that we're going to need. here's all the austerity measures have you to take. that completely takes out that uncertainty. so based on how people were positioned, particularly people short the euro, people shorting spain and other indices into this, you have to cover. you have -- so it's partly short covering, partly actually a bit of a fundamental change. >> isn't there the minor detail though of rahoy, i believe it was yesterday or the day before saying that borrowing costs would have to go much, much higher in order for him to ask for a bailout. they won't go much higher.

the ironic thing, the better the market does the borrowing costs will go down. >> it's a virtual circle. >> actually, i believe the quote was that he said if they stay high for a long period of time he'll ask for a bailout. now borrowing costs are relatively high at this point in time. i actually don't think that yields will go down that much because most market participants, people are buying spanish bonds right now are betting on that convergence trade. you don't really want to get too far ahead of the ecb. you want to let those yields stay relatively high so you force that bailout. >> beeks, it's murph. do you see any level on the yield? clearly it will be below 6. is 5.5 a key level where it will give the markets a key reason to continue this rally? >> yeah. i'm less actually at this point concerned about the level on the yield primarily because i think the market is starting to price in the bailout. so that is not so much of a

concern to me at all. i just think there is two events. we have tomorrow, remember we have the bottoms up banking audit so they'll know how much money they need to recapitalize their banks. by tomorrow night moody's is supposed to downgrade their debt or at least finish their review on the spanish debt. both of those things could trigger a bailout. finally october 21st is the spanish regional election where rahoy's party is doing poorly. he may not want to ask for a bailout until then. >> i want to button this up with a trade. today you bought half of your position in the dax back. >> that's correct. i said that i had sold taken some profits on the dax position today. today i brought halfback on this news on the idea that the banking system in europe is a bit more strengthend at this point in time considering there is now a de facto bailout. that should help a lot of german companies and banks and the german dax acts as that risk on,

risk off. >> thanks for your time and thanks for the trade. brian kelly joining us on the fast line. he's a believer in this rally continuing. josh, you're taking a look at the transports. they stuck out because they didn't do well even in a market that moved higher in general. if you take a look at some of the rales, still not catching a break. >> right. so the dow theory stuff. there are four major dow theories. the only thing we can do is look at a widening cass. . this is now getting to the point where it can't be ignored. you could have said the tran anies will catch up or the industrials will take a break. none of this is happening. we have a gaping gap. i don't know that this can be resolved in any other way in my opinion than the dow industrials slowing down. i don't see a scenario where they snap higher, but crazier things have happened. if i had to guess, i think this

is a week or two of a slowdown in the industrials. we allow the trannies to mark time or put on a little bit of a gain here. i would take that side. >> one of the reasons i think the market rallied, which is a stupid reason, but i think it's true, apple turned around before noon. >> so did. >> as went apple, so did the rest of the market. >> apple is 10% of the s&p, it's 20 of the nas. >> $20 billion of the market cap. >> turned around early and everything followed. >> julgs like the old days. >> apple has to make room for ringo now. >> research in motion actually higher in the after-hours session. they raised its guidance. is rim dead or align. mark mckek any, analyst at ever corp partners. mark, does this quarterly report give you hope that perhaps there is hope for research in motion shareholders? >> i don't think it gives you hope, you know, in blackberry that they're going to turn it around. i think what you learned is that they are doing well in survive

al mode. i'd k50i7bd of characterize the boups in the stock and the expectation relative to what they put up. i think the street was looking for a train wreck and we got a fender bender here. >> a smaller disaster than had been expected. also there is news that nokia came out with two phones and actually priced higher than some rim phones. i'm wondering if you think in the end that could actually help research in motion? >> well, i think we're hearing a lot -- i don't think that's going to help. we are hearing of tightness in the apple food chain supply so any tightness in smart phones can help number three, number four player. that could help on the margin. we think the android and samsung phones will do well. >> looking at the after hours market here, it seems to me that once that fails, the company hasn't said anything that's going to differentiate them. the ceo actually made a statement that they were working really hard at this trying to

figure out how to keep this going. is there still a scenario that plays out where rim can continue for the foreseeable future? >> they generated some cash this quarter. they're doing a good job of controlling their expenses in the downcycle. i think things are going to get quite tough for them next year. of course, the make or break is going to be the upgrade cycle for blackberry 10. my best guess is that there's die hard blackberry subscribers. some will upgrade blackberry to blackberry 10 but you'll have a tough time stealing an apple subscriber or google subscriber with a blackberry 10 product. >> mark, a situation like this, what is the sum of the parts of this thing? they have 50% or so of their market cap in cash. you said they generated some cash even though they had losses in the quarter. what are the patents worth? what are the subscribers worth? is there anybody who would take

a look at this thing for merely break up value? >> that's the way you look at it. this stock is down from 140 to 8 bucks. this bounces. you have to put it in perspective. there's about 4 bucks in cash. our analysis, we think their patents are worth 3.5, 4 bucks in a takeout. they need to be bought for that to play out. i don't think their hand sets are given too much value. i think they printed negative growth values in their hand sets. some of the parts is their cash and patent value. >> mark, great to speak with you. jump on that conference call. in terms of research in motion, did the markets anticipate this huge jump and is there any belief that this jump will last into future months? >> well, it traded about five times its average daily volume. 144,000 calls traded versus about 95 thousand or so puts. the bull ush blow. weekly eight straight calls. you know what i think is going to be interesting, those calls cost about 17 cents.

they are quadrupled in value already. if the stock opens tomorrow, what's interesting to me is i think a lot of the premium in the options market will come out as a result of this. that's probably a better opportunity for anybody who's sort of interested in trying to figure out the sum of the parts to make a bullish bet. i think the options premiums will come in. >> that's a good point. >> we should note here that research in motion ce ceo thorsein heins will be on. coming up, karen is betting. she'll give you the fine print and explain why. >> i wasn't in it the whole time. >> i know. it came out of my mouth and i realized it didn't sound too good. plus oil prices may have rebounded a bit but look out because there could even be more head winds on crude. pulitzer prize winning author dan yurgen is telling you what to watch and we're paying for it. ♪ ♪

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wait. there are competitive phones out there. >> as ubs analyst talking to me earlier on ""squawk on the street"," with apple reducing the number of iphone 5 shipments. he did channel checks with the likes of sky works solution, and other suppliers and he found that perhaps there are some parts issues keeping the supply from hitting the market there. so what is the trade here? mike murphy, you stepped in? >> stepped in, bought apple this morning. we got out of where flat apple was. sold the position about five minutes before the close. it was a trade. thought the stock was over sold. down 5 to 6% over the course of the last few trading days. apple is something we want to trade. it's clearly in my opinion the best company out there right now on a fundamental basis. i want to be long on a pull back. i think inevitably you get the rally that you can sell. >> steve is making the point here with the three days of declines prior to today that

apple stock actually factored in those supply disruptions already. >> no doubt about it. supply disruptions, we knew that this was going to be a big ramp and they were launching it out in a lot of other areas than they had in the past. they needed a lot more products. the demand will be there. at the end of the day i think the focus is going to be on how much an upgrade this is. people who bought the 4s last year, how much of an upgrade is this. the expectations got out of control heading into this opening weekend. >> right. >> to testimonier the expectations going into the holiday season. >> you can probably -- on a relative basis to other analysts on street, maybe steve milanovich is a bear. he's still optimistic about apple in general, when i asked him about lowering the shipments by 6 million, i asked if that would be simply booked in the next quarter. he said not necessarily. but there is a risk, he believes, that those people do actually go to a samsung

product. >> i suppose there is a risk for sure, but i think that, i mean, this stock will probably a number of times before we see that december quarter it will get excited on that same news. >> there are people walking around with cracked screens who will wait for the iphone 5 on the store. >> there are people walking around with crack who will wait for the iphone. >> what a trade. >> there are people who will literally wait with a broken product. i this i that's a minor risk in the story of apple. >> we have to talk about nike. another big mover. cnbc jackie deangeles is monitoring the shares after they reported a 12% drop in profits. >> you're absolutely right. it was a drop in profits but the numbers actually looked better than expectations. the eps was higher, the revenues were higher. the numbers were lower year on year. 136 for the eps this quarter versus 123. meantime, the company saying

that demand in charkts like china was slowing. higher cost of materials used in things like shoes, t-shirts, that was hurting its margins. that's really what hurt the stock today. let's take a look at the stock and see what we're doing in the after hours session if we can pull it up. we got it. we're down about 2%. 9412. melissa. >> jackie, thanks for that. josh, you're making a point, nike still not cheap. >> i wish it were. this is a stock you want to buy but it never gets down to what we would say an appropriate valuation. it's still 20 times earnings. this is despite the fact it's the fifth consecutive quarter of margins dropping. in the '80s i get excited but at 94 i don't see how you can call this a screaming buy. it's flad year over year. it's not terribly expensive, but i would wait. >> we own finish line and i'm in

the sure they'll be affected. it's not great for foot locker. >> nike only gets about 30% of their revenues from north america. this is a global story. they're relying on global demand in china for much of their future growth. for me they've told us it's two quarters in a row that demand is soft in china. i'm not smart enough to put my finger on it. this is one you want to avoid and look at an opportunity in the 80s to buy. >> as you all know, the chair woman is always on the hunt for value. this time she's finding it at the trade here. we're talking wet seal. >> yeah. it has had a disastrous year. they've had a ceo trade. normally this kind of product is a little shutlutty for me. >> for you? >> yes. conservative. what i like about it is you have a very clear path to some very significant board changes. that's a good thing. you have a balance sheet that is

extraordinarily strong. too strong. they have excess cash. you have a brand that has relevance even with their same store sales declines. you have a lot of ways i think to be able to make money and the balance sheet gives you some protection. we have an activist here. >> we do. >> i love activists. >> carl should be worried. we have the activist investor. 7% steak. we're talking about the clinton group and greg will join us to make the case on what they can do and respond to some of the company's allegations that there's no plan on deck and also that the clinton group is a short-term self-interested investor. we'll get the low down on that straight ahead. meantime, one of the dollar stores raking in the dollars. all of the trades big movers. that is next. we'll hear the activists agit e agitating for change. small stock but this could see some pretty big moves. stay tuned.

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oil prices advancing from yesterday's two-month load. crude higher on speculation of china's stimulus and spain's approved austerity budget. there are some geo mow lit call concerns that could weigh in. let's bring in dan yurgen. he is a the author of "the quest." great to speak with you. >> thank you. >> with oil going down to 90 and even going below 90, geopolitical doesn't seem to be factored into the price. what risks do you see? >> oh, i think the geopolitical is, i mean, particularly when you look at brent which is of

course another price range. but it's basically what's unfolded in new york this weekend is a laboratory for it with the iranians continuing their diatribes, talking about preemptive war against israel and today the israeli prime minister saying iran is maybe six, nine months away from nuclear weapons capability. that's very much in the price. >> so your concern really is the impact of potential sanctions in terms of how you view the situation, let's say a week ago prior to the u.n. general assembly and now, how much greater are the odds of those sanctions and, therefore, the impact on the oil prices? >> well, i think the sanctions have worked much better than had actually been anticipated when they were put into effect. iran's economy is going to decline by perhaps 2% this year. inflation is 40%. the economy's collapsed. it's harder for them to do business and about half their oil imports have been curtailed, but the issue is will this

actually cause the leadership to come to a negotiating table, say, after our presidential election? >> dan, it's mike murphy. just two quick questions. if you take the fear premium out of oil, where would you see -- how low would the price of oil go, number one? number two, if you get some sort of action in the middle east, if israel attacks iran, how high do you see the price of oil going? >> well, i think on the first one, you know, the fear premium is probably 10, $15 a barrel, something like that. you also get this bubble that today the news is better from europe so the price is up $2 on top of that as well. >> right. >> the chinese probably won't put a stimulus in until they're really starting their transition. in terms of what happens to the price of oil, that's the big question, of course, and the price would go up if anything happened. you'd see the strategic petroleum reserve used here, the other emergency reserves used but, you know, it's kind of anybody's guess as to how it's going to unfold.

people keep doing simulations and it's not going to be good for the price of oil in terms of it shooting up with all of the other impacts in the world economy. >> dan, it's karen. i wonder if you could explain something to me. how is it that there's 10 or $15, i know it's hard to quantify exactly, where are people buying that oil to store? if that's the case, why aren't we seeing tanker rates move at all? i know it's an oversupplied market. how do you get to that premium? where does the oil go? >> yeah, it's really reflected in, you know, in the futures market. it's not particularly in inventories. the whole inventory situation is very strange. the people who probably have the most oil in inventory right now is iran because they can't move their supplies out, but it is this -- you know, when you have these -- this is a really serious geopolitical risk. people in washington have said it's the most difficult problem they've ever dealt with.

and combined that with the turmoil in the middle east, you know, and all the spare capacity for oil, almost all of it is actually concentrated in the gulf and iran periodically threatens to close the strait of hormuz although the heads of the joint chiefs of staff say they can close it and reopen it. to make a threat to the world economy. >> dan, it's always great to have your analysis of the oil situation. >> thank you. >> time for pops and drops and movers you might have missed in this session. we'll kick it off with a pop from morgan stanley. >> up by 2.5% at the end of the day. this name is perceived to have the most risk as the result is sustained. when you have that sort of budget situation, the stock took off midday. >> drop here for dollar general, down 1%. karen. >> i think it was just the secondary kkr looking to monetize that home run. >> testimony purr paid dick was

a mover. 14%. >> they're buying one of their biggest competitors which is seely for $3 million. it takes capacity out of the market. lowers marketing spend. probably boosts margins. >> there goes one of the best ticker symbols on the street, gone. >> zz. >> mike murphy? >> lenar had a great earnings announcement last week. the stock sold off with the rest of the group. earlier today susquehanna came out and downgraded the name. after we digested the home data that came out, the stokts rallied. >> green mountain a pop today, the move 5%. mike. >> there are a couple of different things pushing it around. keurig sales seemed to be doing better. starbucks competitor sold out and exceeded expectations but then schultz came in and said he was affirming the relationship with green mountain coffee. at the end of the day what we're

seeing is short covering. the stock is probably fairly valued. >> we have to pop you for mika, the dog. a new sheriff marking his territory in the town of vaughn, new mexico. mika is the sole member of the police force. while the town may have gone to the dogs. >> what's his pension. >> the 450 person community is reportedly quiet and has very crime so good question. pop here for yahoo, the move 2%, dan. >> mighty goldman sachs reinitiated the stock with a buy of $22, 12-month price product. the sum of the parts is greater. i agree. i bought some of it today. >> pop here for discover financial, up 7%. karen. >> it was a nice earnings day for discover financial. they had some good credit quality across the board. they signed up a paypal deal. >> mcp, poly corp dropped today

moved 1%. josh. >> this is one of the strangest stocks of the entire market. you almost have to have your head examined but it's a great trading name. it really moves. the story is china having a problem with japan which in terms makes the story get a little bit more interesting. i don't know what the next 20% is but it could happen in a blink of an eye. >> whirlpool up 20%. >> etc. they've been on a great run. although so many people poo pooed the data as not being very strong. if you look, appliance sales were up 3.4% nationwide. it's expensive and volatile, but as long as the housing rally continues, i think whirlpool can keep going. >> nice use of the word poo poo. >> pop for first solar. mike? >> just trying to keep up with the stong. now there are rumors that they might be supplying a 1,000

megawatt project. the stock was down a similar amount. i can see why the stock would rally but solar is still a weak space. i would stay away from it. >> we have a pop for the penny. here's a penny for your thoughts, a 1943 lincoln cent sold at auction for 1 million dollars, 400 million pennies. experts have said the coin was so valuable because it was accidentally struck from bronze rather than steel. only four pennies are known to exist in the entire world. wow. wet seal stock stumbled. coming up next, we'll hear from a man who wants to take control of the company and why he thinks he has what it will take to turn it around. ♪ and buy expensive ketchups with it ♪ they're totally customizable and they let you visualize what might happen next. that's genius! strategies, chains, positions.

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♪ ♪ welcome back to ""fast money."" we're live in "new york times" square. we heard from karen about her long position on wet seal. clinton group cease possibility in the stock if the company removes and replaces four current board members and installs independent directors

as well. they push for a number of changes in companies. barry taxon runs the program. greg, great to have you with us. >> pleasure to be here. >> what's the plan? are you looking for somebody to come in and buy the company? >> well, we think the company has a number of very attractive assets as karen mentioned. great spaces in the best malls in the country and an opportunity to succeed in the fast fashion alongside forever 21, h. and m. and others. the business hasn't been well run and what needs to happen in our view is a new board who's experienced in the retailing business and in the fashion business needs to get their hands on these assets and this company and hire a ceo that can really drive the strategic value. ultimately it may be attractive to a buyer but that's a little farther down the road. the company can be turned around. >> the company had a strategy change. they moved back to their roots

as a fast fashion retailer vowing to do more just in time inventory, sell closer to the time. they're more fashion forward. that's where they lost their way. the stock has responded to those changes and so why don't you think the company at this point is on track? why aren't you giving the company more time to see 24 play out? >> i don't think the company or the stock is has really responded to those changes. the stock was at 296. after the chairman came onto the earnings call and described the changes further, the stock fell even farther hitting an intraday low of 263. the stock didn't rebound to these levels until we announced our intention to try to replace the board. i think the latest moves in the stock really reflect the opportunity that we see, to replace the board with experienced retailing professionals and to change the strategy and direction and hire a better ceo. >> so are you gearing up for the spring? is that when the next proxy vote is? the rampup starts now?

>> no, we're involved now in a campaign. we believe without a ceo and strategy, they need help now. this board has overseen three different ceos, three different chief merchants, same store sales declines in 78% of the last 60 months needs to be replaced now. we're concerned they hire their fourth ceo, switch to their third or fourth strategy and it, too, doesn't work well. we've decided to move before the annual meeting. we think shareholders need to act now to change out this before before this board does any more damage. >> there's an unusual mechanism where if they get enough consents from shareholders, come next week you could be in a position to replace the board in very short order. >> that's right. i think you will win. i know you can't opine on the outcome of a proxy fight. the other side might say, why

turn over the keys to you. what's the answer to that? >> well, the answer is nobody should turn over the keys to me. i'm an investor. i think that the business has lots of opportunity. we've done a tremendous amount of due diligence. what we've done is recruit an expert board made up of three former specialty retailing ceos. a former coo and a woman that worries about capital structures for a business like this. we think shareholders want that board and should want that board instead of the board that they have. we think that that board, this board that we've recruited, will do a great job of leading the business. we're not going to have any more control or the influence over the company than any other stockholder. we've done the hard work of recruiting new directors almost like a headhunter would. >> greg, i want to share with you what the company provided us in terms of a statement.

we told them that you'd be on our program. wet seal wrote to us. clinton group has a history of leaving shareholders in a worst position. they do point out a bunch of statistics from 3d moderator. the share prices of the companies you've been in on average have gone down 11.5%. seven previous targets specifically in the consumer services sector were down an average of 20% compared to a 2% decline in the s&p 500. can you speak to your track record and whether or not you're in it to flip it and make a quick buck? >> absolutely. these sort of attacks against the clinton group are irrelevant to the campaign. people should judge the boards on the merits. the current board has -- >> isn't it important for shareholders to understand your track record and the changes you've gotten on behalf of the shareholder? part of that and a big part will be the share price.

>> absolutely. we're not embarrassed about our track record. we've done well for our investors and the stocks that we've invested in. the reference that they make to 1 13 d monitor. it doesn't calculate fairly the way we've left company. for example, dillards was in that list. the stock trades for $75 today. we bought it for $16. it shows it down 450, 50%. it's a method logical issue. if you look at the 20 companies we've been involved in, not a single one of them to the best of my knowledge off the top of my head here is not down, certainly not down substantially. we've come in and helped companies. we're involved in red robin, put people on the board and replaced the ceo. the stock went up.

>> real quick, what do you think you can get out of wet seal? >> we think the business is well run, if it attracts a buyer which we think it might, we think they can get $5 to $8. there's a lot of cash sitting here. if it is returned would reduce the number of outstanding shares. if the business can then be turned around we think a takeout can be arranged at the higher end of that range. >> we hope you'll update us on this campaign and others. just how effective are activist investors and how should you trade? the earnings calls for nike and rim. much more "fast" straight ahead. ♪ ♪ with the spark cash card from capital one,

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welcome back. let's get the latest in the after hours movers. we've been monitoring rim and nike's conference call. john, let's start with you. >> interesting moment on the conference call. one of the analysts asking about his numbers showing that rim is actually selling blackberry hardware at a loss. the company about to answer that. they're making their money off of services after. a few things i want to point out. 2000 down in head count in q2. they've realized 350,000 of the billion in the annualyzed savin. also blackberry's 7 device, that's the most recent version

of their os that they have out now comprising the large majority of handset shipments. blackberry 10 will arrive in the mid tier first. they said they might have a low end blackberry device by the end of next calendar year. >> next nike shares continue lower. >> they went on and on. they just started questions like two or three minutes ago. i will share what they said about china. of course, china did a little bit better than expected but future orders were weaker. he basically said the opportunity in china is better than it's ever been. the other thing is gross margins. they said they're encouraged by the trends. they're down but better in terms of the progression from the previous quarter. finally, this issue of spending versus revenue. sgna, they expect it to be at or above revenue. of course in this previous quarter it outpaced revenue which was a negative drag off stock. still down more than 3%. >> thanks, brian for that. meantime, we just talked to

activist investor. we asked how effective are activist investors and how should you trade the moves by investors like the clinton group, bill ak man. we drummed up some of these results. so take a look at this, for instance, for procter & gamble. bill ak man announces persian square has taken a stake. stock is up 6%. dan low demanding changes at yahoo. demanding that the alley ba ba becomes monetized. then you had the example of the noninvestment. david einhorn got into herbal life and nothing happened. do you ever use this information, josh? >> you know, i've been involved in activist situations for 15 years, like since alfred kingsly was consolidating steel companies. there's a rhythm to these

things. if you're an investor and you want to be involved, understand there's the initial 13 d filing. sometimes that will be accompanied by an explanation of what the manager is trying to accomplish, sometimes not. there will almost always be a stock pop especially in a bad company and a bad stock. that kind of fades. you can have a year, two years of letters back and forth and -- >> it's a process. >> you have to understand there's a rhythm to these things. there's no reason to take your full position the minute the news is announced because they tend to play out over a long time. >> i was going to say, that's a great point quickly. these things do have that initial pop. you have to get somewhere where you have some leverage. yahoo was a much better move than proctor. >> are you saying -- >> dan and yahoo. >> got it. got it. all right. >> let's move on. coca-cola enterprises playing along with the rally. mike, in the options desk. a lot of bullish activity here. >> yeah. it was interesting. i noted this earlier in the week

and thought, well, this is kind of unusual, we saw substantial upside call buying, tens of thousands of contracts. then today again jen 35 call somebody bought 35,000 of those. paid 25 cents. that's a bet that it will be up by 12.5%. this is a stock that's up on quite a tear over 20%. this highlights how in names like this, implied volatility, the price of options is low, you can make these directional bets and risk very little. this person is spending less than 1% of the stock price to make the bullish bet. >> thanks for that, mike. meanwhile, the guests after break could end up in the ranks of power players. we'll hear from three up and comers who just might be the next big thing in value investing. find out what their ideas are after this. ♪ ♪ [ male announcer ] the markets keep moving.

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whitney and sum zero visited us at the nasdaq.

the search for the next great value investor. the winner will present his best idea long side bill ak man and david ien horn at the world meeting next week. the three finalists join us to break down their best ideas. steven wood here at the nasdaq and in san francisco, matt kirk. we have a clock. this is the challenge. steven, why don't we start off with you. what is your best idea and why? >> it's fiat, spa italian automaker. i think the italian auto space is interesting. fiat has the best management team. it's trading at a hefty discount. so if you use ford and gm's multiple, applied to chrysler, it's trading at 420 euro now in italy. it's the only automaker on a flat macro economic environment that can more than triple operating income. cost savings with chrysler and new products. so combined with discounts to the group and mr than tripling

operating income -- >> there's the bell. thanks. >> good job though with the 30 seconds. >> matt kirk out in san francisco, your 30 seconds begins now. >> sure. so we like cincinnati bell. it's a regional telecom operator but they also run a rapidly growing data center business. while the market has seen this stock as a legacy telecom, no free cash flow and dividend, in reality they reinvest back into the data center. management recently announced plans for a partial ipo. we think on a sum of the parts basis the stock is worth 7 to $8. there's still some up side left. >> wow, with five seconds left on the clock. good job there. ryan, we'll go to you. >> my idea is jack in the box which is a company most people associate with being an operator of its namesake, fast food chains. i think it's undervalued because there's a misperception of what jack's business is. it is nearing the completion of

a seven-year refranchising efforts. it's going from being a capital intensive low margin to being a higher franchise. and they own an asset in kudobol which is a fast growing mexican business. they own a significant amount of real estate that also isn't being fakt tored in so when you value each piece it's worth a lot more than it's currently trading at. >> all right. good way to button it up. in case 30 seconds wasn't enough, you can find it at value investment challenge.com. the winner will be announced next week. they'll pick their favorite of these three stocks right after this. stay tuned. [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac

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