ukraine. good or bad, ten seconds. >> keep our fingers crossed they've got to get this election done on may 25th and putin doesn't want to do it, so there's more to drop. >> that's flappable you managed to fit that in. happy mother's day. have a great weekend, everybody. "fast money" is coming up in a few seconds. melissa lee, round out the chart for us. >> we've got the one chart for us. this doesn't smell good for the markets. >> over to you. >> "fast money" starts right now live from the nasdaq market site new york city's times square, i'm melissa lee. our traders tonight are pete najarian, guy adami. the tech giant has been sitting on a massive cash board and sitting on the sidelines of silicon valley rival made big purchases this year. apple ceo tim cooke referenced it last month during a

conference call. >> we're not in a race to spend the most or acquire the most. we're in the race to make the world's best product that really enrich people's lives. so to the tune that acquisitions can help us do that and they've done that and continue to do that, then we will acquire. >> so is beats the right company for apple to buy or should apple buy something else? i mean people have been grousing that apple has been sitting on this cash because they've not been doing nothing and now they're grousing because they think it's a lousy acquisition. >> i don't know that i'd call it a lousy acquisition but i don't know where they'd pull $3.2 billions out for some he headphones. certainly beats, it was traded around a $1 billion eva when carlisle decided to jump in there in september and now am deems this to be a $3.2 billion

company. that's where i have a problem. i want to see acquisitions but i want to see acquisitions the right way. i don't mind the size. somebody bht uarlier this year, today, about whatsapp. that's too much too. $3 billions or $19 billion, either way, these two acquisitions, we're paying far too much. that's the part i don't like about this. >> this is about streaming music because downloads are on the decline. >> i think it's partially about streaming music but this is a product apple can take and run with and go global. i don't think pete is respecting tim cook's gangster right now. first of all it's a billion in sales and profitable. number one. number two, yes, the evaluation is up but sales have quintupled. you have a profitable company at a reasonable evaluation. look at skull candy, which is probably traded if you want to comp and this company's much better. and keep in mind they have 60% market share for headphones over $100. they basically own this market

and so apple is buying entree. now, now, is jimmy iovene going to be a great for the streaming side? is dr. degrredre's endorsement to help? i have no idea but it's only gravy. >> does apple really want to be in the headphone business? this is about where the music industry is going. >> is it? >> streaming. >> >> is it because i can't believe i'm about to say this. pete makes great points. is this about the business solely or is this a toe dip into fashion apparel industry. i know that sounds crazy. people wear these as a fashion statement. i see josh brown walking around with them and the music is not even on. you wonder if that's why they like it. >> listen. you're right. the fashion side of it has been underappreciated and it's a big deal and it's a status thing and people like to walk down the streets with them, but it's not

global yet and there's a lot of room. if people want to look trill, this is absolutely how do it. >> i'm thrilled. >> trill. >> trill? >> these are the trillest he headphones on the market. >> you want to be trill. >> ask your kids. >> i'm sure. >> it's a tiny acquisition but it's the signal. google osh facebook bought oculus. you have facebook making all kinds of acquisitions, hey, in the future this is going to be a $2 billion industry and apple comes out and buy some headphones. that's the problem. it just fell flat on the market. >> speaking of google, guys, ghoul google is trill. >> how do you spell it? >> two "l"s. >> the apple deal might be news

to us but we've got someone who called it in april but as an april fools' joke. let's bring in joe, variety contributing columnist. great to have you with us. >> great to be here. >> you're purely writing that in jest. >> not purely in jest. the people are cracking me up. they're analyzing this from a tech company level, an apple level. the bottom line is apple is desperate, clueless. steve jobs is dead. they have no vision. just because steve job said i'm never going to get a streaming company, i don't believe to it, they adhered to that philosophy to the point of death. track sales are down. this is about getting into the streaming music market. when i wrote about this back in april, i wrote much more seriously than i usually do on april fools' because this is the only option for jimmy iovene and apple is clueless and dep pras. >>

desperate. >> i think it missed boat on streaming and so now it's trying to catch up. to that point, though, do you think this is the best acquisition or would have it been better off spending the extra billion or whatever it is for spotify whrks has an $4 billion base. >> >> spotify is going to cost more much more than $3.2 billion. one can ask about the functionality and scaleability of the present beats purchase. they've had a number of hiccups since their launch but if you want to pay less, get the headphones. i'm looking at this the other way. i'm sure jimmy iovene says i want to close this out, you get everything. don't forget they got the new market person and they know how much they can sell in beats because beats is the number one seller of headphones in their apple stores, but this is about the streaming service. don't forget that apple dominated with the one-step slun with the ipod, the itunes store, and they were about dominance, dominating in the i phone

market, ipad market. suddenly the dominance philosophy is suddenly gone. apple's margins are usually north of 30% but they're losing market share around the world. the number one streaming service around the world is youtube. youtube dominates everything. spotify is making some inroads. apple is a day late and $3.2 billion short, okay? itunes's radio can't even compete with pandora. at least they seem to go into lapp. in countries besides america which pandora has not done. will they succeed. that's a different issue. if they do succeed, who cares if it's $3.2 billion. look at the itunes store. they had to make a move. they should have made it earlier. >> bob, thanks for your time and commentary. we preev yat it. bob leather sets of variety. they made a headline. apple midlife crisis.

>> oh, god. >> isn't it true, they're late to the game when it comes to streaming. >> they came late to the table a lot of times. they can't create tablets, they just did it best. >> they didn't buy it. >> they bought itunes. look it up. lefsetz is right. they do need do a better job in streaming. this is the avenue they've chosen to take apz after dealing with all the options. the deal is not even eight hours old. >> it's a maybe deal. >> let's see if maybe they made a right decision before lighting it on fire. >> first of all, the interview -- i mean that guy was at the lost boy set. did you see the collar up? he's lost in the '80s somewhere. that was the craziest thing i've ever seen. that's not about is this going to move the apple stock. is this a foray into the -- as crazy as that might sound, business. that's what they're putting in place.

i looked up trill. can i given you -- >> yes, please. >> adjective used in hip-hop culture for someone considered to be well respected coming from the combination of true and rule. >> true and rule. why wouldn't it be trull. >> you're pretty trill. >> damn straight i am. >> say something after that. >> throw up a sign. >> they should address the supply train. >> what do you mean the supply chain? >> try to get the margins better at ample by getting supply chain and getting in there and acting that way and get the margins to raise to the upside and get on the innovative side. this is absolutely ridiculous. >> let's get to the chart of the day here. this is one you've got to see. many are taking a look at the russell 2000 as a warning sign. it's inching off about 6% from its recent high. now, if you're a believer that

the economy is a-okay, this shouldn't happen. >> well, this is what's troubling about this. the theme du jour, the theme over the last couple of months, the economy is growing. once we get through this winter freeze that we had, europe is probably slowing, china is probably slowing. if the u.s. is growing, you want to be in the small caps. everybody is coming on and saying u.s. is growing but the investors are growing with their shares and they're selling the small caps, they're sell you the stocks that get all the growth from the u.s. and it's troubling if you think that things are so great. >> let me throw this out at you, brian. we looked at the data on this. there have been nine instances going back to 2010 in which they even had a corruption of more than 10%. the average is about 15% and every time the s&p 500 has also fall bin about 10%, that hasn't happened. the s&p is actually up with the russell below 10% some of you have go back a decade to find a divergence of this, and i would say it's not necessarily bearish to see people paying attention

to valuation and voting with their shares, yes, but deciding to go into larger cap stocks and get out of the more expensive russell. so i'm not saying the jury is out and the s&p won't eventually correct alongside of it but it hasn't happened yet, and it's not necessarily a sign that the economy is doing it. >> real quick, the february 5th loan, was 107 in the quarter give or take. we've obviously made a series of lower highs and lower lows since the beginning of march, but if this holds, the russell that is, that 107, 108 level, i wouldn't fade a bounce. that's maybe what happened today. >> we've got a news alert here. don has the details. >> melissa, guys, here's an interesting story coming out of dow jones on the wire. they're siting sources that bill is backing allergan, his biggest investment in hedge fund history. also detailed the details ofover all profits so far at a goldman sachs event this week saying

that ackman had made paper profits of almost $1 billion already on his stake really going after allergan. so, again, a billion dollars almost in profit is from bill ackman's stake in going after allergan. also it's his biggest investment in his hedge funds history. ackman getting a 38% deal on buying allergan. remember, the shares are up 35% just over the course of the past three months. so, again, nice moves here. again, dow jones citing sources that ackman has gotten 38% on allergan. back to you. >> if this does smell awful, i realize he gets all the legal team behind him and everything, they've crossed the tees and dotted the eyes and all the rest of that, but his biggest trait ever happens to be on trade where he's part of one company that's going acquire the other company and he starts acquiring

huge mass amounts, his largest ever? god, does that stink a little? a little bit? >> amen. yes, yes. >> yes, it does. >> and it's legal. there's nothing wrong with it but it doesn't pass the sniff test. >> what's interesting. he's up 18% this year, ackman, at least as of the end of april and everyone was so earthquake to right his obituary last year between jcpenney and herbalife. >> will photos be the next battleground for social media, and is the 3-d printing trade over? reporting earnings this morning. is today's big dip a buying opportunity? that's next on "fast." [ female announcer ] there's a gap out there.

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josh. >> yeah. it used to be. now that a piano has been dropped on it, it's flachlt it's about 35% off the ties. one of the worst looking stocks imaginable. can i just -- i'm done. >> come on. go ahead. >> don't be a sore loser. >> it's not a good stock right now. >> the problem with the sector, they're not going to get any love whatsoever. over time this is great technology. it's innovative but it's going to be very tough to own these names. >> ralph lauren giving 2015 guidance and warning profit margins will decline as the retailer looks to spend more cash to expand stores. shares down 2% today. pete. >> slowdown in growth. you mentioned the profit margins. those are the two things the investing public does not want to hear. this isn't something new for the company right now. when you look at the company, ralph lauren has been heading south wheenwhile the s&p has

been moving to the upside. it seems right now like the stock is broken. it did bounce off the lows today but i tlirng are more lows in front of it. >> next up, twitter looking to take on instagram with its renewed push for users sending an e-mail to current users saying twitter were sharing standout moments and not just with text. our new photo features make it a snap. >> it's what they need to do in order to remain relevant in the world we live now. you've got to continue to keep up with all the rest of the guys and gals out there. how do you trade the stock? great job pointing tout lockup. i didn't think the last quarter was bad at all. the photo was actually decent. but when lockups and evaluations get in the way, this is what happens. they brought it up. i think on a bounce they can get there. >> pete, what was the options activity on twitter? >> it was extremely heavy today. the last couple of days since the huge drop that the stock has taken, it's got an little bit bigger and actually into the weekend, thursday, friday, huge

volumes in twitter. there's been buying by -- >> worth a shot. >> no, not at all. this is a terrible move for them frankly. mine all they're trying to do is go after instagram, go after everything else. they're chasing after it. they're making same mistake that blackberry made and what they should focus on is their core users and they should have the same symbol or logo that blackberry has, twitter means business, blackberry means business. stick with that and that's where your app at. >> what a nice slogan. >> #trill. >> drop the mike. >> coming up next. >> technically trill. >> he's got the skinny on the health care. he brings the activity to the options market and straight ahead why mannequins and the car pooling just don't mix. stay tuned. we asked people a qu,

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time for pops and drops, big move over the day. a drop for rocket fuel down 20%. j.b. >> like everything you can ask for in a bad stock. missed revenue. guided the run earnings. i would stay away. >> a drop for radioshack down 10%. pete. >> revenues have continued to drop in this company. they're talking about all these store shutdowns and they've actually reduced that number. they still sold off the stock. it looks like it's heading to zero. >> drop for ta'umy. >> i can't believe i'm going to say this. i can't believe i'm saying this. trade it down to where it held in september. it held there again today. it isn't rich on valuation and there's another shortage -- pete's laughing at me. >> he thinks you're nuts. >> there might be a short covering rally. >> to me that makes sense. >> to me too. >> that's trill right there.

>> to me that's smart analysis. >> it's a trade. it ooh's trade. >> it's a trade. >> netflix, up 2%. >> up 2% today but it's got a couple of problems going for it. one, their costs are going go up, we know that. secondly more importantly back in january i actually figured out what netflix does and thought it was a pretty idea and i pretty much topped it. i would stay away from netflix. >> and a drop here for dummy drivers. police in massachusetts say a motorist tried to bypass rules for hov lanes by placing a mannequin in the passenger seat. the state trooper spotted them as they attempted to get on interstate 93 and quickly pulled them other. now they'll be doing their ventriloquist act in front of a judge. >> they should get tased for that. >> there's a moustache on the dummy. he went so far as to color in a

moustache, that's fantastic. >> because that would be so much better. >> the officer got suspicious when the dummy looked like john luke picard in "star track." >> why wouldn't you put a hat on it? why would you have a bald mannequ mannequin. >> at least a baseball cap. >> listen. >> let's get some unusual activity. you've been seeing heavy call buy. >> if you go back to april, they had a call for about a buck and a quarter. today they're selling, a little over three dollars on those. rolling out to the august 45 calls. another 5,000 traded as was the same number back in april as they were buying the may 40. folks are looking at the stock. they think it's going higher and it looks like it's going to break out through 45. >> let's talk about what has gone on in the markets this week. we had the o'on. he was great to come on after a

disappointing quarter, right? correct? stock was on. and the stock continues to fall. there seems to be no support here. >> because there's a credibility problem. that's the problem. within three weeks they issued. they did two secondaries and the manager sold shares. stocks trading at 26. this was two weeks before the end of the quarter. they're going to have to do a lot of work to get investors back on that. >> guy, what's your take on that. >> we mentioned it the other night. the rise in the s&p, it should be doing a lot better. s sa man tex is starting to do better. >> go around the horn. pit boss. >> i think there's upside from here. >> josh. >> sun power hold 50g day on this pullback. thing it's buyable. >> beakers. >> i like gold things. shiny thing, buy it. >> deke. >> rangers game. >> huge game.

i'm already for it. >> you jinxed them the other night, jerk. >> symantec, and we announced it -- don't roll your eyes. good-bye. have a good weekend. good-bye. >> cramer is sitting down to get the whole picture. that and much more top of the hour on "mad." that does it for us on "fast." meantime don't go anywhere. "options action" starts right after this break. here at fidelity, we give you the most free research reports, customizable charts, powerful screening tools, and guaranteed one-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and e-trade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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"options action." after apple's beat by dre deal, what's going be the next tradeover. plus. it's the world that has been pulled over your eyes to blind you from the truth. >> the truth is only a handful of stocks are holding up the market. we'll tell you which ones and why that could spell trouble. and, that's what tesla shareholders are saying this week and we'll tell you why it's about to get worse.

the "action" begins now. from the market site, i'm melissa lee. apple is looking to buy beats for $3.2 billion. everyone is asking the question, what's next. here's what's so interesting about the deals we're seeing. whatsapp, tumbler, beats, what about the private companies? >> think there's plenty to be had. let's take a step back and see what happened this week. the market actually went sideways. we started the week. we had the twitter lockup ipo or ipo lockup. it broke. and the thing just careened down 20%. and the next night we had t theally baba coming. ite going to the big the biggest ipo every and then we have the biggest market cap company in the world buying or thinkingly knowingly, we don't know yet, theory going to buy, you know, beats by dre. it seems there's a lot of tech stuff going on.

i've got to tell you if you're thinking about it with not so rosy glasses on i, issue got to tell you -- >> it feels like a frenzy to me. probably the late stages of the bull market going on. we see valuations above the historical averages. everyone is fired aunld loot what happens when a little bit of bad news comes out of these things. they get absolutely eviscerated. to me it's like the late stages of the second tell 2.0 rally. >> part of it is google and facebook are going head to head like a couple of kids in the sandlot that they want to buy all of these companies before these new companies get public. they're racing to put a stake in the ground and get a space. think it's like what happened with the cloud space before with hp and dell. it worked out great if you owned those names. didn't work out so great if you owned hp or dell. the point is the companies are relatively small, except for

whatsapp. relatively small. >> this brings you do your original question. >> you see the momentum stocks. you say all of a sudden these are cheaper targets potentially. >> we don't know that the beats thing is going to happen. their streaming service has about 500,000 paying users. what's the logical extension? the one thing i'll say this is not apple's m.o. they don't buy versus building. they chose one of the smallest players in the market if this is going to half. somebody, like to scott's point, maybe it's google, facebook, who knows, may want to leapfrog the next one which is amazon. and you have pandora, a publicly traded company. they have 76 million users. if you think about it, if you want to become a player, that's what you do. >> or spotify. >> you said it in the last show that spotify is valued at $4 billion. you know what? pandora is valued at about $4

billion 4rks$.5 billion. it's almost been cut in half from the all-time highs in early mafrmt but -- here's a big but. this company trades at five times the sales. let me tell you. yelp has a little less than $4 billion market cap. so on a relative basis, you can make an argument that this is a kind of cheap new economy company. >> this is one of those -- i mean first of all, is there anybody here who doesn't know somebody who's on pandora all the time? i will tell you in my own house one of the things that happens all the time, did somebody forget to hit the button, do you know what i mean? it's going all the time. i think they have a very interesting business model. five times sales. let's not forget a lot of tech names can have really astonishing margins when you get down to it. let's assume you can achieve 40% margins. that's not off the charts crazy. at five times you're looking at a very reasonable multiple. plus they've got growth and a big footprint. that makes a lot of sense.

>> what's the trade. >> you've got it, lady. let me tell you. like today, i'm not a big fan of these names. i'm actually short still low and netflix in put spreads. to me i think it could be in play, it could be reasonable and it could be the sort of acquisition target that makes sense for a lot of deep pocketed players. when the stock was at 22, i looked out to september and i bought the september 28-35 cost spread. that's way out of the money. i paid a dollar for that. i need a massive move. to 29 just to break even on september. but let me tell you something. this is the sort of thing if somebody's going to pay for this, they're not going to sell for much below the previous highs that probably gets you to a 30%, 40%, 50% premium. that's why i wanted to get out of the money, get out as little as possible to make six between 29 and 35. and you know what, i have shorts on in this space against it. this is a speculative trade.

i'm starting with this way. generally you don't want to do deep in the money, you know, chunky bets on something that's speculative. >> scott. >> dan makes a great point that this is speculative but he also makes a great point that even though it's money for a takeover, it's not an outright call. you might think if you're going to bet on a speculation, he's making a bunch of calls, he's reducing the cost by a third by turning it into a call spread and i think that buying calls or call spreads is the only way to get long because you look at the chart. it's really uggie. you hit 40, roll over convincingly, lower highs and lower lows, so the only reason to be long here is because you think it's a takeout candidate, but, you know, he's risking a buck to make six and that's a pretty good deal. >> who would buy it? who do you think would buy it? i mean if the premise is here that pandora is a powe den chal candidate, who's the buyer? because otherwise if you can't identify a buyer -- >> maybe a merge were netflix. there's a ton of things. this is my point about the

market and all the craziness in tech, we don't know what's going to happen. if things are going to get weird, they're going to get weird. we don't even know. >> if they can use the stock as currency, it makes a heck of a lot of sense. it's hard to believe. >> on a tough week for stocks, consumer staple stocks have actually been the best performers. more gains to come. tom chu at headquarters with more on this. >> all right, melissa. stocks like coca-cola, walmart, proctor & gamble, they rose on the day. we did see them come out and buy call options. now, in walmart and procter and gamble, too many traded as put options. and in coke, nearly four calls were traded for every single put. now, the volume wasn't necessarily huge but we're seeing a bullish expectation. this is a sector that is up 4% on the year, far outpacing the broader market overall. so, again, some of these big

names, again, especially consumer staples showing nice "options action"s. back over to you. >> the question is are those bullish traders right? got go to the chart master. carter worth. what do you see? >> this is a fear based approach to markets. people who don't like what they see but have to be long. big pension plans and so forth and so they buy defensively, but usually it comes to an end. let's take a look. here is just to set this up going back to the early 1980s the sector, one of the parts comprising the whole. staples versus s&p. and, of course, we can see this is just an epic period of performance over this time frame. so by that score alone, you have to wonder what's really left in the trade. but more immediately, the strength of the last six or eight months is taking the well define lows and highs of the channel, you can see this, yes, and mean aversion is a powerful principle. to overshoot this by all accounts implies that there will

be be some revisiting of the top of the channel which is about a 10% move lower from here. now, here is the index again. again -- and i would, if you will, draw the line like this. we've reached the top of this sort of thing. and, again, we're thinking back like this. lot's do it one other way. this is a five-year chart since this current bull market began and this is the xlp, the actual in strument you can trade. you can again see how well defined the channel is. it responds beautifully over and over and over and when you overshoot the top you have a chance to reavert. you go back to below or a little bit of the range. let's talk about fear in number form. kraft, general mills, procter, you know all of these names. look at the "p"s. average is 21. this is earnings gross over the past year. the results are zero.

zero, and yet people are willing to pay that kind of price for this. it's a fear-based kind of behavior and it comes to and more often than not. >> not even keeping one inflation as far as earnings growth is concerned. does this seem familiar to anybody? >> shocking. >> i thurng we did this exact same thing about a year ago in the staple stocks. these trades, they sort of track ten-year u.s. treasuries. everybody goes running into them. and then the corporate yield falls. i don't see how anybody would want to potentially chase this trade. where do you think these things are honestly going to go? i think you're right. have people who want to maintain a bullish stance. that probably represents the call buying you see there. but the smarter bet is probably on a downside move because when there is an equity market downdraft, the safe stocks are going to get pulled down. >> you've got a very simple trade. >> very simple. we're looking out to september. we're going to buy the xlp, one of the nice things about staple, they have relatively low volatility.

that means the options premiums are going to be cheap. this is a situation where on the index it's even cheap efrmt this is a really cheap way to make a bearish bet. >> it's definitely cheap. i'll just say given the price action and so many other sectors, i'm more in the camp that i want to press weakness here. if you want to go after those staples, i get it, but that costgo right there, i'm long puts on that. that trading at five times and the technical setup is a disaster. ite verse contrary to what's going on in the slp. i'd rather press the weakness. >> if you press the weakness, you're going to end up selling some bottoms in some of the names that have rolled over. thing mike is absolutely trying to pick a top. that's the case. but he's also doing it really inskpebsively. now, if you think it's not going to go down, you might think it's going go sideways and you might want to sell a call sprid. you don't collect very much money and you risk a fair amount of money. he's risking a little bit of money. >> you want downsize leverage. >> that's right.

he's spending a buck 15 and he's going all the way out. >> got a question out there, send us a tweet at cnbcoptionsaction. that's on our website right after the show. in addition to scott, you'll find great trader blogs, educational material and hottest options gossip. believe me it's hot. maybe not so much. check it out. it's coming up next. >> what do tesla shares and these people have in common? they're both doing the electric slide, but it's about to get worse for the carmaker, we'll tell you why. plus, why are some traders betting big on a twitter turnaround? >> it's a strategy. if it's any indication, twitter could see a huge move higher. we'll tell you when "options action" returns. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves...

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from td ameritrade. lsh epicfail. since the start of this year, the stock has lost half of its value. dan has been bearish but you did see interesting bullish activity, dan. >> yeah. you know, listen. the stock broke at $40 right before the lockup and it was lights out. they had a down 20% day. on tuesday a lot of traders were trying to figure out what's the lever. here's the thing. there was no technical support anywhere. it went public at 26. it went much higher. where do you buy. so one of the things that was kind of interesting today, you know, the stock has been hovering, you know, above 30 for the last few days since the lockup. and this morning when the stock was 31.84, there was a really interesting trade call where a trader actually sold 2,500 of the september 27 puts for 220

and bought 500 of the september 35 calls for 3:20. that trade cost them a dollar. when you look at the graphic over here, what is he really doing? between 27 and 35 on september expirati expiration, he risks that dollar or $250 in prime yum and on the upside hae has long exposure unlimited above 36 bucks. when you thing about it, where was it? that's going to be a really interesting level when you think about it going forward and if you're looking to get some levin and you're looking to take advantage of the next thing here, this is really why i think the traders sold the put to finance the purchase of the call. implied volatility while it's down a lot in the last couple of months it's likely to go down lower when you think about the fact the lockup expiration goes low. so if the trader thinks it's going to come in, he doesn't want to own premium and that's why he tried to help finance it. the last point i'm going to make is this. twitter, the sentiment is really, really bad. thing back to facebook.

that was a bust out of the gate. twitter is still up from its ipo price and look what happened on facebook. as soon as they looked at it, user face, bam, just like that. at the end of the day they may be thinking about the q2 report that's going to come in august. i think that's the time they can basically demonstrate to the street they know how to monetize. >> what's interesting about it, too, when you take a look at facebook's performance it bottomed in september 2012 and that was one month after the lockups began expiring which co-inspires roughly with where we are with twigger. >> interesting thing is, of course, when people begin to turn the course, they begin to see some of the revenue growth we'd hoped for. when we saw this thing, a lot of people talked about what they thought a reasonable evaluation would be. the company had about half as much revenue at that time as it does now, valued at about $17 billion. i look at the situation and think, you know, it makes some

sense to sell some downside puts in this thing because there's going to be a level in which the people who were originally interested are going to have an opportunity to buy in similar ways but they have a whole year of transparency in which to deliver. thank's an interesting place to start looking at it. >> sometimes you can say there's such a thing as follow money. >> that's one of the reasoning sells putting is -- >> that's true. that's what this show is about. >> you can throw that under the market and say, listen, if it really catches, maybe i'll get to buy that. >> that's a great. but if you think you like it at 32 and you think you're going to like it at 27, i think you're going to love it at 22. i don't see a reason this thing stops. it's not facebook. they haven't figured out how to monetize mobil. it's going downhill. it's going downhill fast. they don't stop and turnaround.

they get ugg will and mushy at the bottom. >> here's the thing. i'll button it up. it probably goes back and makes an attempt at the ipo price. some of the earlier insiders and earlier vfrmt c.s said they weren't going to sell. they're simply going to sell the next time they have an opportunity, especially if things get uglier. >> coming up next, twitter wasn't the only high flyer taking a nosedive this week. there are concerns about electric carmaker tesla. so how bad could it check? we'll find out when "options action" returns. ♪ [ 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.

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only from xfinity. tv and internet together like never before. ♪ ♪ ♪ [ 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. it was an awful week for tesla, the stock plurnging 14%. that was very bad news for a certain pair of "options action" all-stars. take a look. on "options action," just

because we risk less doesn't mean we're going to make more and unfortunately that's just what happened with mike and carter's bullish bet on tesla. carter said tesla's shares were about to accelerate. >> time to make your bets. we think the resolution is up and out. >> all right. aisle hop on board. but just buying the shares. 100 shares would cost more than $20,000 or roughly the price of -- >> a new car. >> to spend less mike instead bought the september 215 strike call for $25. now to make money mike needs the stock to rise above that strike price by more than the 25 bucks he paid or above 240 by september expiration. but mike, really? paying $25 just to get into tesla? >> it seemed to be a good idea at the time. >> so to reduce his costs, mike then sold his september 255 strike call for $12.50 and created his call spread, but he did something else. he made making money easier and here's how. you see, between the 25 bucks he

spent on the lower strike call and the $12.50 he's collecting on the higher strike call, mike has cut the cut off of his trade to just $12.50. that means mike just needs tesla to rise above $2.15 by more than the $12.50 he's now spending or above $227.50 by september expirations. >> i love it when a plan comes together. >> me too. but sadly that didn't happen here. and since the time of the trade, tesla has fallen 8% making this trade a loser. >> boo. >> now coal and carter are barely on speaking terms over a trade gone bad. but, guys, between all the acrimony, let's not forget about the trade because "options action"s fans are all asking the same thing, what will they do with tesla now. >> hopefully they can make up. >> all right. let's answer that. carter, we've got to go to you. what does this tell you? >> it was violent, quick, and

bloody. this is the trend line and there's the break. what matters from my point of view is this and this. this moving mechanism. we closed today on the average around 182 in change and when we would use today's low as your walk away point which is 177. if this doesn't come to life now, it's ore, walk away, but we would give it another hour, another few points. give it the average. after that, you've got a bigger problem. >> what do you do, mike? >> we're at taping point. one of the reasons we put this call on in the first place is from a fundamental standpoint it seems awfully challenging to change the stock at those lofty valuations and still has. the good news is we lost obviously lost a lot less than we otherwise would have. i think i'm with carter on this. we'll wait and see how this resolves itself, which we're going the find out very, very shortly. >> it's not resolving itself to

the upside. this is a 2013 stock. listen. i gave you a lot of guys credit. it's over. the sentiment and the psychology of the market is great. it's great, great company. >> it has potential catalysts here. let's be honest. everybody is waiting to figure out where the gig ba battery factories are going to be. >> it's going be in a bmw factory. i love the fact, love it, that carter's being ruthless and taking the loss. you have to do that. >> all right. coming up next. the file call from the optionings bids. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪

all on thinkorswim from td ameritrade.

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find your sleep number setting only at a sleep number store. know better sleep with sleep number. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim from td ameritrade. time now for the final call. the last word from the option pits. carter. >> reduce your exposure to the overpriced no groulgt area of consumer staples. >> scott. >> happy mother's day. >> happy mother's day. >> a cheap way to buy downside

in the staples. >> looks like our time has expired. i'm melissa lee. for more "options action" go to our website and also, of course, check out the daily segment inside fast every day. we'll see you back here next friday at 5:30 p.m. in the meantime, mad money starts right now. my mission is simple. to make you money. i'm here to level the playing 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. my job is not just to entertain you but to educate you. so call me at 1-800-747-cnbc or tweet me. another week where it gravita