people first, then money, then things. now, you stay safe. bye-bye.

valuation, they're almost the same. >> the notion that the u.s. would decouple from some geopolitical event. history doesn't prove that. scott makes a really good point about the mix and gold actually hung in there this week, too t. rate is going up here. people feel pretty good about things. we have a fed meeting coming up,

they are likely to taper $10 billion again the deeper we get into the taper, at some point -- >> if we move to a risk environment, that will be bad for equis the everywhere. but don'ty that equities are a safe haven if we start to see a risk off kind of a transition. >> the sector that did well, this week, financial, great trade yesterday as well as today. >> there you go, rates were up. people are really focused on that. how are these companies, let's talk about j.p. morgan. here's a company that had their annual investor day last week. it caught my attention today. it banged up against that previous high. it got within pennies this morning. 5980. when you looked at that stock, it pulled in. it had a monster week, after the lows on monday. here you are, i actually think if you think about how the european banks traded.

euro bank index down 2% on the low of the day. i think that will come home to the u.s. j.p. morgan does not have a lot of exposure over eastern europe and russia. its more about volatility is not price anything here at u.s. stocks. this is one of the reasons i want to look out. we will have stress tests the next two weeks, j.p. morgan will report their q1, which we know will be bad. if the i don't think is mercury, i think we have an opportunity where it's cheap. so you are bearish. >> this is near term. this is a great company firing on all cylinders. i want to take advantage of i think poor technical set upand options. i look at the april 11th, weekly put, the morning they report their earnings. you could buy the april 11th weekly 59 put for $1.45 about

2.25%. what i would do right here, if you get one big move like we had this past monday on the downside, will you have a cheaper spread put on, you have multiple events between thousand and then and the potential for geopolitical risks. >> why do you think the stress test will be a bad event for j.p. morgan? >> i don't think it's a bad event. i think you have the potential to add volatility to the space. >> what is the best possible outcome? >> that's the flipside, but, you know, a lot of these sflams had a very good run. so you have to figure even if it's a coin toss, which way that goes that there is some risk to the downside. he pointed out earning, i don't know it's a surprise they won't be all that terrific. we know the fines they had to pay. a lot of the numbers are baked into the cake. >> i'm taking a look at equities more generally. >> about this trade. you will have not a lot of time to spread out of it or trade

around. my question why not sell a culprit. options are cheapish. >> they're cheap. they are like multiple points below where it gets to before events. i think if you get any sort of volatility, geopolitical, like i said, or something comes out of the stress test. i think the bomb will go off. >> i want to get j.p. morgan, that could be doing a bank job on your. short of carrying a risk. a big best to define the risk. now let's turn to the pig story of the day, that, of course, is better than expectt reports. that's not happening this time around. let call to the charts the chart master. hey, carter. >> hey, let's have a look. something not quite right, tesla notwithstanding a lot of the major auto manufacturers are not acting right. we have a lot of charts here.

i will draw where the year started. the beginning of the year, toyota is down, the stockmarket, itself, is up. do it again with honda, yours started here, honda is down, stockmarket is up. do it again with volkswagon, down, honda, the year starts here, stockmarket is up. auto manufacturer down. here's general motors, a big one, again, sparkts up. stock is down. here is the entire shooting match. this is hyundai nissan. this is the entire global auto index. what i see is a well defined trend, which you see over and over and over. and finally, we have broken trend. now we have thrown back to the under belly of the line. that's a very difficult spot to be in. now, two more things. this is that same chart of all global auto manufacturers relative to another very important index, which is u.s. home builders. notice the lag between how cars

are performing and houses are performing. that gets to performing and gets to consumer. so here's the trade, ford, a well defined trim line. you can't deteriorate any straighter than that. it's clearly a break in trend. if you want to talk about toping formation, whether it's head and shoulders, what have you. this is a heck of a neck line the presumption is we have a break here. we can't all be tesla is winning, they're all losing, something is wrong. >> thanks for that, carter. mike, you agree with carter when it comes to the fundamental also? are they also bearish? >> this is an interesting thing, that i are probably trading at a little less than 11 times. >> that sounds good. they look at enterprise value per ebita. >> that looks good. the thing, you can't look at cyclical companies like the autos that you can to look at kimberly-clark or procter & gamble. the situation here is you need to take a broader look.

when you spread that auto more, what do you see? we see it is trading above its historical evaluation, the past two or five years. the company lost $2.33 a share. in the long ternlg you add it up, it is trading about 30 times that number. if you see a rising rate environment, that doesn't really see from my perspective a lot of consumers running out buying cars, taking advantage of cheap financing. you can take a cursory look. looks good, a deeper look, not so good. >> so you are bearish. a simple trade tonight. >> i'm looking at the june 15th put. i'm liking j.p. morgue isn't not that high here. so i think this is an opportunity. i'm giving myself time for a bearish event to play out. i can look for it to spread it. this is a situation where also the price action is not looking that good. the broad market starts turning itself, it will not catch it. >> i like to say i am bullish on

gm. i like the idea between ford looking out, looking out four months here. i think these stocks can be coupled. when you look at the growth rates, i think gm is set upest better. i don't think you can argue with buying the money put. looking out four months. >> i think that's the same. the longer day it is, it makes a lot of sense, water dated options, each day, until you get closer to expiration. another thing we haven't talked about is the fact that all of these legacy auto makers, the unionized auto makers have a tough time, go everyone the fact that vw will come in, put a plant from chattanooga, i think all these guys are really in trouble. got a question out there, we'll answer it in our 101 extra. you want to check it out. here's water coming up next. one $5 stock is up 50% this year. >> it's a mule. >> no, it isn't, weirdo.

it was all in the charts and we'll tell you where it's going next. we're on our way with the rich and famous. >> you may want to think twice about. that that's because high end growths are seeing low end returns. it could get a lot worse. find out why when "options action" returns. [ indistinct shouting ] ♪ .

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 where we look at our winners. zynga the ugly duckling of new internet stars. here's how they made money. on "options action" it's the only game we play, risk less so you can make more. that's what carter did on zynxa. he said it was time to get in the game. buying the shares for a risky stock like zynga. >> that can mean serious losses. so to avoid buying the farmville, a call for 42 cents to make money, shares arrive above 4.50 or above 4.92 by april. it takes 42 cents to get in on

zynga. >> this game -- >> no, it ain't. so to spend less, he pulled not one but two equal calls for 24 cents. between the lower strike call and the 24 cents he collected on those two higher strike calls, mikes a reduced his costs down to 18 cents and fwlou to make money, mike only sooedz needs to see zynga shares rise more than the cost of the trade for above $4.68. >> i created the perfect system. >> not right. if windows shares rise above $6.32, mike could be on the hoof for infinite losses. >> we are at def con 1. >> to prevent that mike bought a call, now between the 42 cents he's paying for the lower strike calm the 24 cents he is collecting by selling the two

middle strike calls and the 7 cents he is paying for the higher strike call, he is shelling out a total of 45 cents. that's the most he can lose, in order to make money, he needs stocks to rise above 4.75 by april expiration. since the time of the trade, zynga shares rallied over 25%, making this trade a winner, leaving one more question, what will these two gamers do now? before we get to that, let's see how much money was made, had you bought zynga at the time of the trade, you would have made 25%. mike's trade costs 25 cents and can be sold double that for a return of 100%. wow, mike, are you sticking with this? >> it's interesting, we talk about these butterflies, one of the things we are looking for is the stock to go to that sweet spot. we would like that to happen on expiration, this situation happened a little sooner maybe than i would have liked. i think this is an opportunity

now for to us take profits on this one, even though unlike most, if the stocks continue to rally, we wouldn't lose money, this is about as good as it will get. carter, are you sticking with this trade? >> i think it met its price of judgment. when the pattern is played out, we take the money and go. >> dan, is that what you want to do? you like to pu push the envelope on the stray? >> the correctional call these guys made. he actually made 100%. it was a lot of work to do that. they've taken the premium. they have the conviction on the trade. >> you are racking 100% on the call? >> you see what happens, you have to hit the mouse button three times in a row to double your money on my fingers, i'm not going to do that ever again. >> the thing about this, you have to cross your fingers, hope you get to april at this price. >> coming up next, supermarket stocks, they're blooming. why call foods are falling

short. the answer might surprise you, we'll have that story coming up. we'll be right back. .

>> i got a question for you out there. is the organic arugula wilting?

shares of whole field have suffered a miserable start to 2014. so is it time to get out of these fancy food stocks? carter, what do you see? >> time to get out for sure. let look and figure it out. i'm not going to draw on the first two. safeway, kroger, let's go being. the same pattern. these things are basically going up, working well, take a look at there. the fresh market, whole foods, down, appreciate 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's happening in whole foods, same thing. you got a recent quarterly miss, a second quarterly miss. that's a bad problem. ten there is the pattern, itself. if this is not a head and shoulders top, i don't know what one looks like, it's well formed. you have a perfect neckline here the presumption is, again, the drop in gap, this drop in gap

and the next within we think is imminent. it looks to us as we're going down to 45. keep in mind, basic supermarkets are doing very well. kroger, safeway getting bought out. >> that is not the case with the whole foods and the fresh markets. >> hey, can i take a shot at that? i think we have a chart of mine. >> we are doing charts, dualing charts, my favorite. >> i think i'd label it the triangle of death in whole foods. >> i remember that. >> can we bring that up? it is head and shoulders top. look at that pick. >> that whole triangle is above that gap from all time highs back if 2012. i think that reenforces the point, if you have another piece of bad news, it may not be that standard 10% gap like we seen on the way down. >> here's what i don't get, we have high-end retailers doing well, coor's is doing well, why

don't they spend money on food? >> i'm not saying they aren't t. retail games haven't been quite that extensively, people kept waiting for shoes to drop. these stocks, actually were not that cheap. whole foods was trading at a whole premium. you don't see growth and something that's priced for it. this is what happens. >> i think people love starbucks and they fell out of love with starbucks. it bunsed being. i think the same thing true with whole foods. people lined up their bmws or expensive audi to get into whole foods. they fell out of love with it. why? it's expensivep. it's crazy, if they canfall fall back in love with it, the stock will do well. >> you know who else fell in love with it? competitors. >> wal-mart. >> not only that, when you see the consolidation we are having, the safeway. these guys are going after that market share. they know there is an appetite for it. for gluten free or whatever else they sell.

i think it's the competition. >> you know what they sell. you go to that place all the time. actually, you don't buy anything probably. let's get to your trade. >> i want to look out actually. i agree with carter wholeheartedly. i want to look auto. the 1st of may, they are likely to report tear fiscal-2. they are not particularly cheap right now. today when the the stock was 5370, i bought the april, marks 50-put spread for 80 cents. i sold one april at 50 cents and a may at $1.30. it cost me 80 cents. i wanted the stock to go, that is the break down level. i want to own the put for the event. if you get there and can finance the purchase of these puts, you will be set up. >> i love calendar trade, ai love them in this situation. i might consider pushing the may options out further. >> why? >> one of the things we noticed lately, scott highlighted the at the beginning of the show.

he said, notice the fixed didn't drop that much. what this is telling sus there is fear baked into the options market. so you can use those proceeds to find those longer out. those decay more slowly than those mays. i think that's the way i prefer to play it. >> i think like was right and i was right. >> coming up next the final thoughts. [ 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. ♪

[ 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 call from the options pit, stocks. >> options are pretty inexpensive for this week. how to buy a put in plp. >> we will get a carter now. >> we got four whole foods, be careful. we think their youp side risk is not nice. dan. >> it's the triangle of death. i love the culture. >> yeah, i would actually love to make that calendar spread a little broader, a longer dated option there.

the other thing is, cyclical stocks, you have to look at more than disconnect 12 months from the value. >> i got a two-fer there. our time has expired. thanks for watching, for more "options action" check out the wek website. we'll see you back here next friday at 5:30 p.m. eastern time. have a great weekend. >> i've had air filters in my house. i've tried tons of different things to try to deal with my allergies, to deal with trying to get cleaner air inside my home, and i haven't found anything to be effective. airocide is the first product i've dealt with that actually makes me feel better when i wake up in the morning. i have found that airocide has helped me so much to deal with my allergies that i would recommend it to anyone who has trouble breathing or wants cleaner air, whether it's allergies or asthma or just they want healthier air in their home. the back story of airocide is