♪ this is "options action." tonight -- >> we have cars, cars, cars. >> i bet you do, because with jobs coming back to america, auto sales could be next. we'll tell you how to profit. plus, it's a question every trader is asking -- >> what little richard song was the title of a 1950's movie starring james mansfield? >> no, not that. what $5 stock is poised to double. we got answer. and is fancy losing favor? the rich are getting richer, but

high-end supermarkets are getting poorer, we'll tell you why it's about to get worse. "options action" starts now. live from nasdaq marketsite in times square, to paraphrase bob newhart, was it all just a dream? is the u.s. the new safety trade or investors simply making a big mistake? let's find out. dan, has anything changed in the past week sf. >> nothing has changed geopolitically. we had the jobs numbers for the first time in months that was better than expected. so, in general, you know, it feels like the recovery here in the u.s. is intact, that's why global investors feel pretty safe in investing in the s&p 500. >> would you say it's the new

safety trade? >> i don't know if it's the new safety trade. a safer trade, perhaps. why don't we take a look at some of the risk factors that we see right now. the value of all stocks relative to gdp right now, probably around 120%. another metric, what is the price time earnings, thee-times longer. it's a it will bit of a premium there. in a yield environment like this, that could make sense. remember, we're looking at the risk versus the reward. >> there's almost no time over the last 18 months when buying the s&p was a mistake. you can buy it badly and still make a loft money. the s&p is saying one thing. but if you look at bonds and gold, it's saying something different. the market isn't democrat.

i'm shocked that the vix was only down a dime today. it tells you people don't want to have a lot of risk over the weekend. and they're fine owning the s&p here only if they can have some protection. >> if you take a look at germany for instance, it was down 3.5% on the week and eu is russia's largest trading partner. >> yeah, but you know the notion that u.s. would somehow decouple from a big event, history doesn't prove to be the case. scott makes a good point about the vix and gold. you know, bonds got murdered, though, towards the end of the week. i would say rates going up here, people feel pretty good here. i think, you know, the deeper we get into the tapper, at some

point, something could give. >> if we move to more of a risk environment, that will be bad for equities everywhere. but don't think that equities are a safe haven if we start to see a risk. the sector that did well this week, bonds. >> people are focused on that. how are these companies. let's talk about jpmorgan. this company had their annual investor day last week. it caught my attention because it banged up against that previous high, within pennies this morning, when you look at that chart, it made a double top. the stock had a monster week. 6% off of the lows on monday and so, here you are, you know, you have this thing, i actually think if you think about how the european banks traded today, it closed down 2% on the low of the day, at some pint that's going to come home to roost here in

the u.s. it's more about the broader context about volatility is not pricing anything here in u.s. stocks and this is one of the reasons i wanted to look at, we're going to have stress tests over the next two weeks and jpmorgan is going to report its q1, which we know is going to be bad. >> okay, so you're bearish. dan? >> this is near-term. this is great company firing on all cylinders. a poor technical setup in the cheap prices of options. april 11th weekly puts the morning they report their earnings, you could buy the april 11th weekly puts for the 59 put for a 1.45 you break even at 57.55 to the down side. one big move like this past monday to the down side, yo vul

an opportunity to to spread these and to have a cheaper put spread. you'll have multiple events. >> why do you think the stress test will be a bad event for jpmorgan do you think that's true? >> i don't think it's going to be a bad event. >> all right. >> i mean, well, what's the best possible outcome? that's the flip side. but, you know, lot of these names have had a very good run, you have to figure, even if it's a coin toss, which way that goes, there's some risk to the downside. he pointed out earnings, i don't know if it's going to be a surprise because we already know the fines. but, you know, i mean, i'm just taking a look at the equities more generally. >> about this trade, you're not going to have a lot of time to spread around it. options are cheapest.

>> there are multiple points below where it gets. geopolitical, like i said, i think it's going to go up and. >> let's wrap this up. short jpmorgan, that could be doing a bank on your portfolio. now, let's turn to the big story of the day, that's better than expected employment report. let's call to the charts with chart master and find out why, carter joins us now. >> let's have a look. something is not right. tesla. i got a lot of charts here. what i'm going to do is draw where the year started. that's the beginning of the year and toyota is down, the stock market itself is up.

doing it again with honda, honda is down, stock market is up. volkswagen is down, stork fact is up. here's general motors, it's a big one, again, stock market up, stock is down. here is the entire global auto index. what i see is a well-defined trend which you see over and over. finally, we have broken trend and we have thrown back to the underbelly of the line that's very difficult spot to be in and now, two more things -- this is that same chart of all global auto manufacturers, relatively to other u.s. markets. so, here's the trade, let's look at ford, a well-defined trend

line, i mean, you can't draw it any straighter than that. if you want to talk about a topping formation, this is a heck of a neckline and the presums is, we got a break here. this isn't good for ford nor the group. >> all right, thanks for that, carter, mike, do you agree with carter? >> this is an interesting thing. lot of people like to look at multiples. they look at enterprise value. trading less than five times. the thing is, you can't use the same metrics, though to look at cyclical companies that you look at procter and gamble. one of the things that we see it's trading bow r above his

historical evaluation. this company lost more than $3.30 a share in the downturn. if you add it up, the ten-year adjusted earnings is about 30%. if you see a raising rate environment, from my perspective, that doesn't see a lot of consumers running out and buying a car. >> you're bearish. what is your trade? >> all i'm doing, i'm looking at the june 15th put. they cost about 50 cents. i think this is an opportunity. i'm giving myself some time for a bear iish spot t. >> i like this trade, i'll just say, i'm actually bullish on general motors here. -- ford here. i think when you look at growth

rates, you look at the evaluation, i think general motors is set up better. looking out four months on ford. >> longer data options,less each day until you get closer to expiration. all of the unionized at autos have a tough time. i think all of these guys that have unionized work forces are in trouble. here's what's coming up next -- >> what $5 stock is up next? it was all in the charts. we'll tell you where it's going next. runaway with the rich and

famous. >> high-end grocers are seeing low-ened returns and it could get a lot worse, find out why when "options action" returns. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ sunny or bubbly? cozy or cool? "meow" or "woof"? wheels or wheeeels? everything exactly the way you want it ...until boom, it's bedtime. your mattress isn't bliss: it's a battleground of thwarted desire. enter the all-new sleep number classic series. designed to let couples sleep together in individualized comfort. starting at just $699.99 for a queen mattress.

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change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. welcome back. it's time for the "upside call." zynga the ugly duckling of internet stocks it's been on a run of late. here's how they made money. on "options action" it's the only game we play, risk less so we can make more and that's just

what they did with their bet on zynga. just buying the shares for a risky stock like zynga that could mean serious losses. so, to avoid buying the farmville, bought it 42 cents. he need it to raise above $4.50. paying 42 cents just to get in on zynga -- >> is this a game in. >> no, it's not. he sold two april strike calls for a total of 24 cents. mike has reduced his cost down to 18 cents. and now to make money, mike

needs to see the shares raise above that lower-priced cost, to 4.68 by expiration. you see because mike sold more calls than he bought, if zynga shares rise above 6 bhnt 32. so to protect himself against one, mike went ahead and bought the april strike call. now between the 42 cents he's playing for the lower call and the 24 cents he's collected and the 7 cents he's paying for the higher call, he shelling out 25 cents. in order to make money, he needs zynga stock to raise above 4.75 by expiration. zynga shares have rallied over 25%, making this trade a winner.

what one more question -- what will these two gamers do now? >> let's see how much money is made. mike's trade cost 25 cents and can be sold for double that for a return of 100%, wow, mike, are you sticking with it? >> when we talk about these butterflies, we talk about the stock going right to that sweet spot, we would like this to happen on the expiration. i think this is an opportunity for us to take some profits on this one. even though, like most flies, if the stock rallied we wouldn't lose money. >> carter, are you sticking with this trade if. >> i think it's meant his price objective. take the money and go. >> disaster. what an amazing directional call

these guys made. yes, they made 100%. it was a lot of work to do that. if they had take on the premium and had the conviction on the trade -- >> you see what happens, you have to hit the mouse button three times in a row to double your money. >> three times the mouse click. >> i'm not going to do that ever again. >> the thing about this one, you have to hope you get to april at this price. coming up, supermarket whole foods when we come back. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today

after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.

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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ got a question for you out there -- is the organic arugula wilting? shares of whole foods have suffered a miserable start to

2014, is it time to get out of these fancy food stocks? let's check back with the chart master, carter. >> it's time to get out. but let's take a look. safeway, kroger, let's go back. safeway, kroger. it's the same pattern. these things are going up, working well. then take a look at this, the fresh market, wheel foods down. fresh market down. notice the problem here, a gap, a gap, a gap, stocks gap down when they say bad things, these are earnings misses. guess what is happening at whole foods? the same thing. a recent quarterly miss. then there's the pattern itself. if this is not heads and shoulders top, i don't know what one looks like, it's well-formed, you have a perfect neckline here and the p presumption this drop in stock.

again, keep in mind, basic supermarkets are doing very well, kroger, safeway getting bought out, but that's not the case with the whole foods or the fresh market. something is wrong. >> can i take a shot at that? because i think we have a chart of mine. >> dueling charts. my favorite. >> i labeled it the triangle of death in whole foods. remember that? >> yes. >> can we bring that up? this is a heads and shoulders top. that whole triangle is above that gap from the all-time highs back in 2012 and i think that reinforces the point if you have another piece of bad news it might be a lights out for this one. >> here's what i don't get, we have the high of he end retailers doing well, why don't these people send money on food? >> one of the things that's interesting a lot of the retail names actually haven't been priced that expensively because

people kept waiting for shoes to drop, these stocks by contrast, actually, were not that cheap. whole foods was trading you know at a good premium on the rest of the market. when you don't see growth in something that's priced for it this is what happens. >> i think people loved starbucks and then fell out of love with starbucks. it bounced back. the same thing with whole foods. they lined up their bmws or your expensive audi to get into whole foods. then they fell out of love with it, why, it's expensive. it's crazy. if they can fall back in love with it. >> you know who else fell in love with it, their competitors. traders joe's. these guys are going after that market share. they know that this is this and at this time for it. so, i think it's a competition coming from everywhere. >> you know what they sell, you

go to that place -- all right, let's get to your trade. >> i want to look out actually. i agree with carter wholeheartedly and you know, i want to look out in the first week of may they're likely to report their q2. you want to really set up to own the puts and finance them. they're not particularly cheap right now. when the stock was 53.70. i bought the april/may put spread. i sold one of the april puts at 50 cents. what i want the stock to do is going down to that 50. that's the neckline. that's the breakdown level. if you get there and you can finance the purchases of these puts you can have a good purchase. >> the only potential change i would consider making is pushing those out. >> why? >> notice that the vix didn't drop that much.

there's a limit bit of fear baked into the options market. you can finance something that's longer out. >> i think mike is right and i was right. all right, our thanks to carter, coming up next the final call from the options pits. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. humans --

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♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading.

♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. time now for the final call the last word from the options pits. scott? >> options in the fine world are pretty inexpensive. how to buy a put in tlt. >> carter? >> got ford or whole foods, be very careful. we think there's downside risk that's not nice. >> the food triangle. >> i would look to make that spread a little bit broader, a little bit longer.

on cyclical stocks like ford, you have to look at more than 12 months. it looks like our time has expired. i'm melissa lee, thanks for watching. for more "options action" check out the website. also, watch our daily segment inside fast money every day. . my mission is simple. to make you money. i'm here to level the playing field for all investors. there's a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job is not just to entertain but to coach and teach. call me at 1-800-743-cnbc. big money managers hate it when more people get hired. that's exactly what you might think on a day like today where we got a surprisingly