>> did you buy the mayweather fight. >> i didn't buy it but i think i should. >> we'll go in. we can watch the fight together. >> thanks to our panel. >> "fast money" coming up in a few seconds. melissa lee what's on tap. >> thanks guys, i'll take it from here. >> where's the hat. >> what happened to your hat. >> oh, i left it behind. but i've got my mint julep. no, i wish. we'll talk apple. apple is losing market share to samsung in the tablet market. apple was one of the big technology sto technology stocks to finish in the green. we'll dig deeper into these numbers today. stronger than expected april jobs number overshadowed by a labor force declined and reunited fears of ukraine and russia helping send the early morning rket rally into reversal mode. brian, kelly, it's interesting because, the tlt --

>> it's very interesting. bonds have been climbing and yield versus been falling for awhile. actually since the first of the year we had this flattening of the yield curve which would say sometime in the future we would get slower growth. then you saw the jobs number. it was good. we could argue about the labor force participation rate but still we're creating jobs in this country yet the market faded. ha that's why i think the market sentiment changed here. what we had for the last four or five years is everybody saying good news is bad news. completely reversed the psychology has changed. >> it's funny. i'm totally the opposite way. i actually bought the tbt today. if you look at the bond market, at 260 to 280 yield range all year. i think a lot of the market was positioned to be short into this market. it's one of the moves. i think it was short covered and overdone and i think ukraine did that. you don't go into the weekend short the treasury market with ukraine going on. ukraine trumps everything going on in terms of the macro data.

yields are going higher. i don't know that they're going to break 280 but i say with the numbers we got today, the three month friend on private payroll, so again smooth it out for the weather. we know today was spring loaded but still around 225,000 jobs we're back to where we were a couple of years ago. >> the 12 month moving average was 197 average. that's not too great. but what's fascinating about the -- >> but that's the whole point. 12 months is looking back. we're now kicking into high gear. >> all right. what's fascinating about the markets is you can take the same set of data or charts and it's like reading tea leaves. people come out with two different se nary yos. >> i'm probably in between. i've been in the rates are going lower camp for awhile now and i still think tlt is going to push up toward 115 but i have to be honest. i would have thought if that happened which it seems to be happening the s&p would be lower than where we are now. so that's my conundrum.

it's better compared to where we have been but still lousy compared to where we should be given all the things that transpir transpired. we can have that conversation. that's why people are so perplexed by this whole thing. i still think the bond market -- >> you still say long bonds. >> yeah. >> lower yields. >> lower yields. >> obviously, tim touched on one hinge that's very important. ukraine is driving this market. who would have ever thought we w would all be sitting here a couple of months ago thinking if the fomc would take the backseat to anything. that's what is going on right now. if you look at the day lay chart and s&p and cross it with gold, the s&p wants to head lower. it's looking for an excuse at this point. >> i don't know. i think there's some real fundamental reasons why people aren't necessarily buying into this market. i mean, we know that chuy ma is slowing. so and i'm not saying it's going into the can but i'm saying that we know that's slowing. we know that europe is probably not going to do qe anymore which was baked into their prices

there. so you have a slowing. >> i'm not sure you do know that. >> well, they haven't done it yet and the markets are telling you they're probably not going to and there are hurdles to them actually doing it. >> but again i could take the total opposite side. chuy ma has been sideways for two years. it's not falling apart. u.s. is actually accelerating. it's the biggest economy in the world. it's not going crazy. >> right. >> but to say we're going to go downward in yields and break through lows we hit earlier in the year when the data is improving off a terrible winter i'm surprised by the move. >> all i'm saying is the growth isn't strong enough to justify the evaluations and that's what we saw in the momentum melt down that i unfortunately got caught in. that's what we saw. the growth just isn't there. if we muddle along it's not enough in the market and that's why i think we're going sideways in the s&p right now. >> the rotation we have seen in terms of adding momentum stocks into things like energy, does that continue? >> i think the energy story is

real. the whole fracing thing isn't going away any time soon. we talked about psx forever. exxon mobil had a big move although i think we're in nose bleeds for alm. it's real. >> the drillers are probably, even though they have atrotious charts. >> the only things that look really impressive are lmg or the large integrated names. the large integrated names have been the beneficiary of the rotation. i don't think it last. you saw where they went. they went into amazons and twitter and a lot of these different names. >> let's get back to berkshire hathaway. courtney has the details at headquaters. >> this is the berkshire hathaway shares, earnings

falling below estimates at $2,149 versus 2,172. revenue coming in at $45.45 billion. the book value increasing by 2.6% to more than $138,000 per share. those are the details that we have right now. we know we'll get so much more this weekend and as we start to get more we'll bring it back to you guys. >> thank you courtney reagan. can we regard berkshire hathaway as a barometer of what's going on? >> they're all over the place. they're in housing which warren buffet this morning talked about how it's okay. it's just not that great. railroads, obviously, that's the heart of the economy right there. you can take something from this and say maybe we're not as strong as everybody thinks. >> but some of these sectors had a good run. the transports have been keeping pace with the dow and we're one or two per cent off the highs.

fed ex projections are they will be growing 15 or 20% this year. i think if you break down the numbers, we haven't had a chance to do that, it's important to see how that breaks down. the financials also may be where you see this number. >> i don't know what they could comp for berkshire hathaway in terms of book value and where it's trading. but i will say -- i hate to even do this. if you look at the day-to-day, it's a 52 week high if not an all time high and then reverse and close lower on the day. i think it's worth pointing out. i don't know if that means stocks are ahead of itself or not. >> the stock over the past year, take a look at shares versus is s&p 500, they're in a dead heat in terms of performance but the s&p 500 pays you a dividend of 2% which you're not getting with berkshire hathaway. one could argue that one would have been better off investing in the s&p 500. >> then there's the successor

risk where they have several people there but you continue know who it's going to be. the other take away from this weekend with berkshire hathaway is warren buffet said i want to find a bear. i want somebody to come tell me the negative story and nobody has shown up. to me, that's a sign of complacency in the market. >> you're the guy with the bear suit too. >> that's the point. everybody including myself said you can't be short this market. you can't be short this market. i'm here to tell you i'm short the market. >> that's it right there. you can stop it right there. >> 0 squared. >> oh, oh. i didn't know that's what he went by. >> he doesn't. i give nicknames to people, right? >> true. >> that one wasn't that great. i'm going to move on. >> you say that because it's me. if steven said it you'd be like great nickname. >> she would have dicked me out of the studio

. >> the controversy is sure to be a hot topic of dits cousin tomorrow. take a look at what was discussed last night about the recent vote on executive pay. >> a fair amount of no votes and what they authorized at this meeting the other day, they don't have to do. they can is put it over a longer period of time and we'll see what they do. >> we should note carl icon weighs in on the coke versus buffet battle moments ago. icon tweeted i have written what i believed to be an informative piece of why buffet is wrong on coke which will appear tomorrow. >> i think you have evaluations here. the carbonated soft drink market is under pressure. some of these trends are a result of marketing effort and misapplication. they claim they have a marketing

story. the elements whether it's green mountain or energy drinks it's something they're thinking about. i'm not sure they need to chase these things but at 19 times, people are chasing after growth in this sector. i don't think you should be doing that with coke. >> somebody just slapped a $51 price tag. but it's all the right points. look at the chart, though. here's a stock that traded up to 43.5. we made the recent 52 or all time high effectively of 43 and change recently and haven't failed yet. i'd rather buy it under break out. that sounds completely counter intuitive to a lot of people. i'd rather buy it at 44 than to try to buy it here. >> we should note don't miss becky's first interview with warren buffet, charlie munger, and bill gates. it's here on cnbc. don't miss that one. and carl icahn on cnbc on the

halftime report at noon eastern time. coming up next, is apple close to losing it's strong hold on the tablet business and why it's days of being the top tech player in the game might be coming to an end. plus pfizer raising it's bid to buy astrazeneca. one last chance to up the bid. stay tuned.

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. projecting $106 billion. turning down pfizer's increased bid today. let's bring in meg. what's going to go on? >> that's right. this monday pfizer is due to report it's first quarter earnings. now just on the top line analyst looking for revenue to decline 10% to $12 billion. eps up about 2% too. about 55 cents a share. but more importantly pfizer is going to be reporting separately the pnls for its three business units. these are their innovative products. including companies with patents expected to last on their drugs

in 2015. in areas like cardiovascular, neuroscience and pain. and also vaccines and consumer and then the third one was established products. some already expired or were expected to expire through 2015. the reason this is so important is pfizer is looking at astrazeneca for its pipeline of drugs on cancer. so we're going to see the strengths of the vaccine's oncology consumer business for the first time here. also very important investment thesis for pfizer is the idea that with the three separate business units pfizer could be expected to break up in 2017. there's some debate over whether some of the parts of pfizer's value is as strong as people are expecting it to be. john boris i was talking with earlier this week thinks the street might be overestimating this and we'll see whether pfizer is coming from a place of weakness and if that could be driving motivation from this deal. >> is there any thought that we'll get a better understanding as to how far pfizer is willing

to go. >> yeah, it's interesting. all eyes are going to be on this vaccine's oncology consumer business because of the cancer franchise there. now we saw early stage data from the breast cancer drug earlier this month and that disappointed the street a little bit. so people are going to be watching this closely because it has implications for what pfizer needs to get from astrazeneca. we talked about this pipeline that astrazeneca has. that's an important key there on monday. >> thanks so much from that. meg joining us from headquaters. we have the names that option traders see as the next take over target. what are they? we'll name names tonight. you want to know. >> yeah. >> it's a hot sector. >> into a parfrenzy. >> can you give us a trade on pfizer? >> i'll play the game. i don't necessarily know if it's an earnings play. i think it's evaluation play. it's cheap. they made acquisitions before.

they bought american home products or whatever they called it for a ridiculous amount of money. they're still trying to play catch up. it was a steal at the time and we said you can go back and archive the fast money tapes. into earnings and out of earnings. >> really impressive. what do you say now. >> burns. >> i just know he's never seen him ever in his life. anyway, i'm going to move on. apple losing it's market share to samsung but it's fighting back by going after the buzz factor by hiring a buzz marketing manager, tim. >> it's depends on how you want to twist the data. apple has 41.7% of the market. that's actually positive. the company is going after i think a very interesting marketing angle here but it really comes down to the products. there's an announcement today that they have new biometric ear buds. so the wearables business, it's about what do you have for me.

>> i can only imagine what yours would measure. but i think expecting apple to deliver something here without a real product means that the stocks trade sideways. we had a great run off the earnings. it was impressive what they're doing in terms of capital reapplication. >> look at all of these ears. >> that's disturbing. that's the worst video. we should put up a warning. >> look at my ear. >> a warning. >> no, don't. i don't want to scare children out there. it's not clean to them. >> have the wax vak. takes everything right out. >> maybe this is a wax vac technology. >> i would be looking to pick the stock back up at 565. not a broken company. needs a couple of catalysts. second half expecting more china. >> thank you for bringing that. >> somebody has to. >> somebody has to trade here on this show. >> fast money.

>> snap chat's newest update allows real time messages. >> do you know what was there before facebook? my space. do you know what was before my space? friendster. they should be worried about these little companies and think about taking out more and more companies. they should be taking out a lot more companies. >> did you have friends? >> i didn't. >> were you on friendster? >> no. >> i'm kidding. i'm kidding. >> not nice. she's not a nice human being. it doesn't make me feel good. >> anyway, coming up, we get a trade update on brian nelly's coin as a digital currency hits the market today. we have much more straight ahead.

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>> they are under investigation or former unit of them is under investigation for weak future's trading. down 1%. if you like this name, don't worry about this. >> pop, to move 1%. >> i can't believe i'm going to say this but you can buy this stock here. you had a huge sell off traded down to where we stopped in november. the stock against a 350th stock. >> a pop for estee lauder. >> did you make that up. >> yes. >> this is the company. the luxury brand, the travel detail and luxury space and beauty department is booming globally. new afternoon markets. >> conoco phillips. >> i think you have a little

time. i wouldn't be a buyer here. >> all right and we have a pop for smoothie. burger king customers in china are enjoying a new menu item. the poo poo smoothie is a drink with the word derived for the mandarine word for cola. >> i don't know what they put in these poo poo smoothies but it's outstanding. it's like caddy shack when he is cleaning out the pool. >> you know the story and the miscommunication there. >> i'm not going to bring it up on air. >> it's unfortunate. >> led zeplin. >> we got communication. >> we got that all the way from china. >> i'll take a pull.

>> we share germs. we want the trade update here. today it's officially going public. so very exciting. >> yeah, so when we made the coin last month the mining technology had gotten so fast and so much ahead of the software that it had to go back and revamp the coin. so i worked with guys at digibite that are fantastic. they have a thing that fights off a mining attack. so today we're able to go public with the coin. you can trade it on austin global exchange. i have a central bank type of mechanism in there to stabilize the coin. it's pretty exciting. next up it's already accepted at a bunch of different retailers and online and hopefully some day we can buy gold with it too. >> wow. >> yeah. >> growing upright in front of our eyes. >> it's big. >> i want to quickly touch on twitter the price action today wasn't that big. it was up and then finished the day lower here and of course

we're looking to look up 313 million shares potentially could come unlocked when you take out the insider shares that they say won't be sold. so you're long. >> i'm still long. $40 is the key level in this stock. it's below it currently. i thought it had great price action yesterday. i thought it was the net recipient of new money coming into the marketplace. but this is one that you're definitely going to have to let it breathe for a week or so. i think if you can get past that lockup without too much damage you'll see people start to take flyers back out. >> letting it breathe, another for its stale. >> oh my gosh. i have to tell you. >> tbt, bought it. after those numbers today bond rates are going higher. >> i take the other side of that. i buy tlt on monday morning. >> energy but remember these guys on the desk said amazon was stale and that looks pretty fresh to me. >> i'm a watch away from --

>> well, after. >> western union, do you know why? if it trades well today, don't fade it. traded well today. don't fade it. >> tonight on mad money, panera got earnings but if they could soon rise again. plus investors looking for the best hot stock. cramer has the play at top of the hour. that does it for us here. see you back here on monday. options action is upright after this break. stay tuned. on car insurance. everybody knows that. well, did you know that game show hosts should only host game shows? samantha, do you take kevin as your lawfully wedded husband... or would you rather have a new caaaaaar!!!! say hello to the season's hottest convertible... ohhh....and say goodbye to samantha. [ male announcer ] geico. 15 minutes could save you 15% or more. [ male announcer ] geico.

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this is options action. tonight, the new fear gauge. there's a surprising indicator that is spelling big trouble for stocks. we'll tell you what it is and how to protect yourself. plus, drug deal. >> you want to waste my time? okay. i'll call my lawyer. >> we're just talking about the next big pharma take over. >> turn your love around. >> that's what traders have been doing when it comes to tesla but will the love continue into earnings. why some traders are betting on an earnings blowout. the option starts now.

>> i'm here with the traders in times square and austin texas. the market has a new fear index. it's called the ten year bond. despite a better than expected jobs report it made a new year to date low. the question is the bond market pricing a big sell off in equ y equiti equities. tensions in ukraine factored into this but you're loving this. >> i'm a bear. listen, it's funny. we're the option guys so we get asked about them all the time. they're down on the year right here. so there's a lot of disconnects but if you look at a couple of other things like i just mentioned the bonds. tlt is up about 10%. xlu is up 10% and gold is up 8% on the year. there are investors that are reaching for some protection trades in a lot of ways and i think it's really important to note that this is a week that we obviously had the fed confirm they'll continue their taper and continue with their talk but, you know what, look at what bonds did. there's a really big disconnect. it speaks to the fact that u.s.

treasuries are the only asset on the planet. >> i don't want to get to wonky. when you take a look, it's like 13 or so. it did dip below and hit 12. it's not telling us anything. when you take a look at what's going on in the bond market it's confusing. >> i would agree with you. it's not particularly elevated although equities still are. so actually stock prices and the prices of options are both telling us that, you know, we don't have a whole lot of reason to panic although i'm a little bit skeptical of equities here. evaluations are quite full. perhaps a turn above average. it doesn't take a lot. could it be ukraine? well, that's one thing. bad economic data or marginal economic data like what we're getting, especially with job participation. those could be the cracks although the bottom really hasn't fallen out here now. the market sending us mixed messages. >> some traders would say what we saw was short covering going

into the weekend. >> here's the thing. something doesn't past the laugh test. we have a synchronized global recovery. we have stocks at all time highs and we have a fed tapering and yet the cost of money is declining. neither one of two things. we have more coming out of china being modelled in on the geo politics is about to get a lot worse. >> what bonds are saying here is not so much fear than confusion and then the fact that japan is going to have a four day weekend. we know they want to buy bonds in front of big four-day weekends. when there's stuff going on that they don't control that's geopolitical then they want to buy bonds. i don't think it's fear. i think it's confusion. short-term vicks got crushed today and the russell, the russell 2000 which lead the way down was actually the only major index that was higher today. i think people are throwing up their hands a little bit. they don't want to buy protection because they think the stock market isn't going to go anywhere this summer so instead of buying protection,

they are buying bonds as a place to park money not as an investment. >> there's a disparity in terms of how people are interpreting the bond market but dan you think this is bad news and you're expressing it when it comes to the nasdaq specifically. >> if you look under the hood, there's stuff going on. there's been a rolling sell off all yearlong. when you think back to 2000, or really 1999, the dot com bobble, we saw a run in those high evaluation names. those are the poster children for the bubble and all of those stocks topped out well before the s&p topped out in march of 2000. we're almost seeing similar price action right now. we know the sectors. it was bio tech and 3-d printing. amazon is going to be in every one of these things for the next 50 years. those stocks a lot of them have round tripped it. not facebook just yet.

i'm not saying we're any where near the bubble we had in '99 or 2000 but if you want to draw a comparison it's interesting and when you think about what we said about the vicks and the s&p you want to press weakness and not strength. that's why i'm looking at the nasdaq 100. to me i see the similar yarties. i wanted to look out a couple of months here and implied volatility, the price of options is relevently cheap. it's down a bunch. so to me when the qqq is 87, 70 today i bought the july 87 put for $2.40. to me what i want to do here is if i catch a move back toward 84 which is the low earlier in the month i'm going to look to spread these. this is a good way. if you own a lot of tech stocks. one big point about the qqq, 25% of the waiting is apple, microsoft and google.

the price action this week in yelp and linkedin it's horrible. sooner or later large cap is going to play. this is a cheap way to catch that. >> i think this is actually the right way to play certainly and the qs are good in smart choice. one of the things that can really elevate the value of puts on an index is when all the names are correlated and you have a relatively small number of names that are representing the bulk of the index. in those things start to move, plus when volatility is cheap that's not the time to look at spreads because you'll van opportunity most likely to sell options at a higher price and that's going to be a better opportunity to do that. >> we're talking about apple being such a huge portion of the q. it's had a huge run so you're selling the top to a certain degree in the q if you're buying puts here. i think this is absolutely a trade. i think you have to be quick on the trigger to either spread out of it or take a profit if you have one. the pe ratio is very different

than in 2000. so this is a trade -- dan make ace good point. if you are overrate these names you buy protection if you have to. >> scott makes a great point. it's a chicken way to short apple up here too. you guys talked about it on fast money. the only thing that comes out for wearables for apple is a disaster. the stock will come in 10% in the next couple of months. >> but if you had to choose you would push on apple. >> i didn't think the quarter was so great. the financial engineering got it up here. i think apple settles back in toward 560. >> the nasdaq did finish lower but one name stood out, tesla is shifting back into gear. carter is going to make a bold car tonight. >> of all the high flyers, high growth stocks, tesla we think is different. let's look at what we know. look at the damage. this is horrendous.

down 38. down 23. yelp down, yahoo! down. let's go to the next screen. year to date. year to date. and then we've got this. that's a real outlyer and this stock is growing at 3 times the the rate of the others in terms of revenue. let's go to the technicals. what's important? we had a massive run of $150 off the november low and we have retraced right now exactly half. $150 up. $75 down and that retracement leaves us right back at these well defined tops. in fact, here's the next top where the line is already drawn. we have a 50% retracement and that's exactly what it did here. a huge move and a 50% retracement. a huge move and a 50% retracement. heres the technical set up. we have a well defined series of high or lowers. lower highs. you can call it a wedge. you can call it whatever you want to call it.

it's tension and it gets resolved by news. the news certainings. now you make your bets. we think the resolution is up and out. close today, we think you get 125 out of this. >> that's carter's call. 125. mike, would you agree? >> this is from a fundamental standpoint and it's tough to make the case. obviously the gigafactory news is getting a lot of people extremely enthusiastic. there's a lot of big plain vanilla funds and they're not selling it and if there's nobody around to sell shares any enthusiasm is going to see the stock propelled higher regardless of the evaluations. this is one of those situations where it's entirely possible that the stock goes higher despite the fact that fundamentally it's hard to get to the current share price. >> what's your trade, mike? >> i'm looking out to september. there's not a lot of expirations between 215 or 215 call spread. this is where the options are expensive. you can spend about 12.5 for

that. that's a way to make a bullish bet without risking a whole lot in case the tech stocks head lower and this one gets sucked into the vortex. >> everything makes sense except if we were last year, okay? this is a different year. i think the jig is up with all of this stuff. this might be the last stock to break but it's going to break eventually. don't be fooled by the charts. i looked at it too. i'd say that looks like a great, great chart but it's a dangerous one too. if there's anything to shoot at its down quick. >> the important thing is, you know this, of all of the things that have been tested relative strength is number one and what's the stock doing? acting well. this week, last week, as other tech names get pounded from amazon to twitter this thing acts like a champ and the presumption is there's wisdom in that good price action. >> the other thing is what i was talking about before. there's big concentrated holders here. they're not going to bail for

the exits anymore soon. it's kind of hard to see where this stock is going to crack if you don't have any material sellers. >> that's the interesting thing. nobody is going to sell this because it's held so much by insiders. back to the trade. the interesting thing is mike is cutting the cost of this thing in half by doing a call spread that's $40 wide. so i'm happy to sell that upside call and cut the trade, the cost of the trade in half. >> wow, you guys, everyone was so matter of fact that no one is selling it i want to sell it. >> carter's call is 225. got a question out there send us a tweet at cnbcoptions. we'll answer tonight. scott has a smart way to get into biotech. you'll find education material and the hottest options news. you want to check it out. here's what's coming up next. drugs and money. after a slew of deals investors are betting on the next big pharma take over. we'll tell you one name seeing

unusual activity in a special report. plus dan told you twitter would drop on earnings. now we'll tell you why there would be more pain next week. that's when options action returns. ♪ [ bell ringing, applause ] >> options action is sponsored by think or swim by t td ameritrade. 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.

♪ ♪ ♪ [ 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. >> talk about drug deals. this year we've seen a biotech bonanza. what could be the next big deal and what is driving the action? meg is back at headquaters to break it down. >> thanks, melissa. what we're seeing is potentially a return to the smaller bio tech

names. some got high there. we have seeing in the bigger buyers they have a need for scale and they have cost cuts they want to employ and they're seen with reincorporated overseas. there's also industry trends driving this and a really positive market reaction to these deals. who could be next? i would talk to analysts today and they're picking name which is include incyte. they're in cancer and inflammation. they have big data coming. also biomarin. they're working in rare diseases. another one is shire. it's got that really coveted irish tax space and in rare diseases and then another one is puma that's in breast cancer. this one was built to be sold. their founder sold the last company cougar to jmj and the last one i'll end with is one we talked about before. they have a huge binary ooent

coming up this year with their combo data. that's another one people say could be a big potential buy. >> thank you for that. what deal are options traders betting on. to answer that question we can only go to one man. the one and only mike with tonight's. >> they mentioned 9 potential take over candidates. vertex and alexion are among the bigger names. we were taking a look and trying to see where there was unusual options activity. one of the names did stick out and that was vertex. they traded six times their average call volume. and then yesterday again about three times the average daily call volume. now they did announce earnings and you might think that's what this is about except what we

were seeing was a lot of act in the july 80 calls. those things are about $9. so we're talking about a nearly 30% move to the upside on a stock that moves about 3% on earnings. it's clear that isn't what they were betting on and they're going out a little bit further. so it seems if anybody is betting on an upside move it looks like vertex is the one they're betting on now. >> do you use unusual activity is your guide to what could be the next target? >> in a space like this action it can be. most investors at home will never know when the dates are and what the probabilities of some sort of bionary event happening. so a lot of times investors don't care what they're paying as far as implied volatility of options in these sorts of things. i don't chase it at all. >> coming up next a huge event could spell more trouble for twitter. we'll tell you why when options action returns. ♪ >> options action is sponsored

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>> but is it a good idea to go short? >> we'll have a different perspective. >> it can expose you to infinite losses. to spend less, it stayed put. dan needs twitter shares to fall below $30 or below $37.45 by may

expiration but spending 255 just to bet against the social network? to cut costs dan sold not one but two of the may 30 puts for a total of 60 cents and reduces cost to $1.95. now he needs to fall below the put by the $1.95 he spent or by $38.05 by may expiration. >> it's that simple. >> it's not. he sold more puts than he bought. he could be forced to buy the stock at that put strike price or in this case for $30 even if it falls below that level. so to protect himself against that, dan bought the may 24th strike put for a nickel. and now between the $2.55 he spent on that higher strike put the 60 cents he collected by selling the two lower strike puts and the 5 cents he spent on

the lower strike put he is spending a total of $2. that means dan will see profits as long as twitter falls more than $2 below the $40 level or below $38 since may expiration. twitter shares dropped about 10% making this trade a winner. now they're out in full force asking @cnbcoptions and @risk reversal the same questions. what will dan do now? before we answer that question, here's my question. what will next week's lockup expiration mean? if you back out the shares owned by top executives and early investors because they say they're not going to sell. that's 313 million shares still. >> i actually think now it's going to be a bit more muted than i thought at one point. the news was out. the stock didn't trade horribly. for all intents and purposes. the stock was down 24% and down basically 8 or 9%. so i think some people in the know think there's not going to

be a lot of stock to be sold but you have monday to figure this out if you have this trade which i do and have to figure it out on monday. one of the interesting things about this trade is if i just bought that 40 put i would have been unchanged. i got the direction right but the prices were so high. that's why i sold all of those options. what am i going to do on monday? i'm going to take a close look at this thing. i'm probably going to take the small win and move on. >> mike. >> you know, this is one of those cases we were talk about tesla twitter, because they are going to have the lockup. this is one i can imagine there's going to be a little bit of pressure on. you can stay with us. >> dan isn't the only one that made money. time for the double upside call, march. scott and carter teamed up to make a bearish bet against amazon. the call has been spot on. what do you see on the charts here? more down side. >> at this point it's round trip. we say this is fair money. not many actuals assured and in-turn buying it here.

so leave it alone. >> what do you do scott? >> you have to follow us on twitter. on wednesday amazon was stronger than the rest of the retailers so we tweeted out we would be offering at least half of this position. amazon was right at $300 which not an accident that that was carter's target. so we wanted to sell at least half of that put spread. it's now up at 308. i'd probably leave it alone hoping it settles down to about 300 but i'd be watching this. >> coming up next, the final call from the options puts. >> options action is sponsored by think or swim by t td ameritrade. ♪ 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

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was right about these biotechs. this is a place to play and can be quite pricey. you might look in the bigger names that actually have a business. >> consensus is to be short tesla and a third of the flow is short. take the road less travelled. play it on the long side. >> mike it's music to my ears because in this week's web extra we talk about my favorite options strategy which helps you buy a stock at the discount and if you don't get to buy it you get paid for your trouble. we're talking about the bio tech etf which had an ugly chart and found a bottom and came back a little bit. if you missed it you get a chance to buy that again. >> what bearish final trade -- >> what are you talking about? with the s&p chart the thing looks great. that's the safety trade right here but what i want to do is press the weakness in the nasdaq and the qqq. the options look cheap and i

really believe if we continue to see the price action we saw this week, linkedin, it's going to spill over. i like it out to july. >> our time has expired. for more options action check out the website and check out our daily segment inside fast. see you back here next friday. my mission is simple. field for all investors. field for all investors. there's always 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 teach and educate. so call me at 1-800-743-cnbc. or tweet me @jimcramer. we get the strongest employment number in ages and the stock market goes lower. dow dropping 46 points, s&p dipping, nas