pretty much out of time, guys. thank you for joining me. a big and long weekend. come back on tuesday and hope everything goes okay on sunday in the meantime. fast money is coming up. melissa lee, what's on tap? >> we have good, existing and new home sales data points. we're going to ask one of the most heavily shorted names out there, trulia. >> perhaps he can answer the question. over to you guys. >> fast money starts now. live from the nasdaq market in times square. traders, tim stooe mower, john, steve and john. the housing recovery, can you trust it? housing stocks jumping today on stronger than expected new home sales data, and better than expected existing home sales yesterday. take a look here. can we believe this? just yesterday we were throwing out doubts about home depot

there? >> brian kelly -- >> you said a little bit longer. >> give it a couple days. and the price action since that quarter, we talked about the quarter not being great, and we have held this level a number of times. we have put in another base for the next leg higher into stocks. i'll go out on a limb, it's 79 and a quarter. on tuesday, it was a buy. take the new range up into the mid to high 80s. >> does that mean everything is good. people are buying plants and boards and paint and so on. >> they are. and names that are overweight, owens corning, ashland. they had pretty good numbers a couple weeks ago. you're starting to see the materials side of the trade. the housing market is deceiving. it's not that strong, it's sluggish. but multi-family is very, very hot, apartment and rental is very, very hot. there's less supply out there. we're well off the 20-year average in terms of home seamal

but the number is good. >> multi-family, not necessarily the home builders. not terribly expensive, dr horton, 17. >> those type of names are recovering because they have a more expensive clientele. but the real name in it that's been beaten up has been kb homes. a client has been extremely bullish on kb homes. it looks expensive and highly shorted. but not really if you take in a deferred taxable asset which they're not allowed to book yet. right now, trades at three times book. it's really 1.6, or 1 times book if you take the deferred asset. plus, factor in that federal regulations are loosening, and you will see more liquidity into the market. it's just about the interest rate, that's a big factor. but the numbers revised higher,

but kb homes is not recovered. that's the dark horse. >> you like home builders? >> we do. we have strong activity in pulty and others in the last two weeks. today it was in louisiana-pacific. that's siding, anything to do with some of the interior of that home in terms of getting the walls up. not the wall board itself. but this stock could have a nice run. it's down about 13% in the last month. i like it here at under 15 bucks a share. it pushes back to 17. >> i meant tack tangible book. >> i like the chart on that. and the street is more or less lined up this way. the large cap home builders, underweight or neutral, but the names on a valuation basis look interesting at a time when home sales are not going -- we're 50%

below 2005 averages. it's not going to happen soon. >> and pete flynt, the ceo of trulia. we have gone a couple of strong data points. at the same time, your chief economist said we will not see the big increases in 2013. the biggest on a yearly basis. where are we in this recovery? >> so in a couple of areas where we're pretty far advanced, and some far behind. existing home sales just shy of 5 million right now. and the steady increase in prices, but we haven't seen the steady increase in volume. that's inventory constraint. you saw the inventory went up double digits april over march. a lot of inventory. you can't have transactions without the inventory.

we're seeing that. and on the new home side, it's a little bit slower. today was good, but look over the next several years and see much better volume in that market. but we haven't seen that yet. a lot of that is down to unemployment in the youth segment. we are looking for employment and household information to drive the overall home market. the good thing for us as a business, the huge market is transitioning from offline to online. that's a $27 million market. while we see it in terms of volume and prices and rates, the market we're going after, massive markets shifting from offline to online. in terms of the competition, they called you a strong number too. and size and transactions, that's compared to zillow. are you at a point where it's an advertising war and you're going ton spending, spending, spending in order to get the agents listing with you?

>> so we're the leader in providing software to agents. so we're the number one in term of providing services to real estate professionals. we alled 7,000 subscribers in q1. far exceeding our nearest competitor. we have a massive lead in terms of providing services. where we're focussed and start again this year is a consumer marketing campaign. we're a massive service, but we need to increase our awareness and engagement with consumers. that started in q1. we're starting to see the impacts of that in terms of consumer engagement and traffic. approximately 50 million uniques in april. so we're really happy with that. and it's a big market. we're going to spend money, be aggressive, be focused on winning transaction-ready consumers. but it's a different game than

our competitor. >> melissa mentioned the shortage in the stock. i'm not going to comment, but traders or investors think it can be commoditized. what are the barriers of entry? what would you say to the folks who suggest that maybe the shorts are wrong, and you have a leadership position that's only going to get stronger. >> we started trulia almost ten years ago. this is not an overnight success. we have been working hard to build a massive consumer audience. we have approximately 50 million consumers. and then a massive base of real estate professionals. this is a marketplace that has natural effects. it's a market that a couple of players can exist at sale, but not much more. and that's just the nature of the fragmentation. there are a million real estate agents in the u.s. it's very hard to attract those consumers. and this is a traditional industry where we built

relationships with thousands and thousands of brokers across the u.s. the category is largely the names that are going to be the leaders, you know those names. it's share fight, growth, rather than new entrants into the market. >> pete, thanks for your time. pete flynt, the ceo of trulia. about 18.5% are short for them, and 20% for zillow as well. it's not just them that's the target. >> they fall under stocks hit in the last couple months, not making any money. they are growing the top line. and look at the chart, during a very difficult time for what people might call momentum, the stock traded extremely well. it's held up at 35 bucks, traded now in 200. and i think it's interesting. what pete is saying, they have a stickier customer base. that warrants it. >> trulia or zillow, zillow is

much better year to date and over the last 12 months. >> cohenfuls buying, he went from 4.9 to 6%. and during the last period, the stock exploded from 30 to pushing 40. so he's nailed this one, stick with him. >> and would you rather game? that's a fun game. >> today, trulia. it's bounced off the levels that timmy talked about. and steve cohen, i think more bid in trulia. and activity. facebook. >> just as we led into this show with kelly evans, if i had to choose between the two social media stocks, this -- >> you would rather? >> i would rather, absolutely, tim. and somebody else much bigger than me put in 35,000 contracts

out in july. they bought those. they sold the 70 strike above it, same number. so that's 3.4 million shares they'll control between 67.5 and 70 in july expiration. it's only about a million and a half dollars, but they could have a huge wind fall if they're right. >> it's friday before the memorial day weekend. would you rather? twitter or facebook. >> i'm in twitter. i would rather there. but it's very close to the 29.5 level, which has been the low, the recent low. feels like guys are pushing it back to the ipo price. but yesterday, a sniff of an activist, you saw the stock rally back, and carl icahn said it's not him. why only one activist? see the action in the social media short.

i think you can see a bounce. i'm hanging on a little bit longer but turning blue. >> i am long too, i wish i wasn't. >> would you rather a traditional memorial day? >> have a little fun for the weekend. >> and plan the memorial day context? >> rather go to the game sunday night or watch what a movie with subtitles. >> godzilla. >> i'm going to break. hp stock turning around on comments on cnbc. what she said and why you should buy. and amazon giving away fire tvs. is the gary abusy ad to blame. >> hello, lamp. >> hello, gary. free research r, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you

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here's what we have to say after the story broke. >> it's about revenue growth and you're not seeing it. given the run the stock has, you have to sell hpq here. >> and the stock was down, and meg whitman spoke to squawk on the street about the job cuts and the bet on the future. >> so while no one likes to reduce the workforce, this will be good for our customers and good for hp. it'll make us a stronger company. obviously we will be able to create capacity to invest in the growth engines of this company. we're focused on business 3-d printing, not for customers. we'll announce a 3-d printing technology at the end of this year, and we think there's a real opportunity here. >> and on those comments, the stock turned around. is your mind changed ? >> no.

you're buying hope now. she may have it right. and i'm sure those 11 to 16,000 people are thrilled it's going to be a stronger company without them, and the margins will improve. but this is not a great quarter. the move you have seen is reminiscent of the moves at others, those are better. namingly microsoft and oracle. you're buying hope at 33 3/4. four-times normal volume. i was wrong yesterday. >> buying a stock is about buying hope to some degree. 3-d printing, seems like it's a catalyst. >> this is a company that's started to prove they can hold on, cut costs, generate cash flow, and they can be ready with new technology. i think betting against big cap tech, at least a reasonable valuation is a bad move. the stock's been sideways. i'm not sure this one has its

mojo. i would be sidelined. >> next up, google, working on a tablet with 3-d capabilities. expected to have a 7-inch screen. production of the first 4,000 will begin in june. >> google was search, and then youtube, but now you look at wearable, the self-drive cars. so much. no one knows what the integration is going to look like. they're at the forefront, making acquisition after acquisition. i think you buy the stock. there's a case to be made that you can be diverse if ied and buy google and amazon. amazon has been pummelled, but they give you everything. >> amazon, offering a promotion for the fire tv that will let users try it for 30 days free of charge. sending the e-mail, and claiming that anyone who received the message is eligible to register for the free trial offer. you're an early adapter --

>> and i'm an amazon prime member. >> did you get the e-mail? >> it would have gone to the wife. i bought these on always -- >> let's not go there. >> you can get it on ebay for less than 30 bucks. the fact they were not moving this item, the fire tv, for 99 bucks -- >> but they initially sold out. >> they only had 5 million maybe. >> gary abus busey, he's so goo. mcdonald's is using him. >> i like him, but this product, not enough people wanted it. and that's why they're having to give it away. when was the last time they had to give away a product everybody wanted? never. the reason they're trying to do it is get back in. it was priced too high when it came out, it is. and just giving it to you for 30

days and send it back. >> that happy meal mascot -- >> that was freaky. >> what's your favorite gary busey movie? >> point break. >> i was just about to say that. tip of my tongue. big moviers of the day. footlocker up 2%. we have seen competition and upgrades. this is a chart that looks interesting, nibble. >> air row postale, down. >> a slightly smaller loss, but came on less revenue than expected. a lot of cuts. i'd stay away. >> worldwide wrestling was a pop. the move, 36 -- 3%. >> this time last friday they had a horrible day. the bottom was earlier this week on a 40 million share day. you can get long and look for

the move to the mid 12s. the stock might be a buy. >> regardless of the dividend yield? >> come on. >> all right. . >> a pile driver. she just dropped a pile driver on you. >> speaking of drop. down 2 percent. >> recently, made a run at the 200-day moving average, 879. i would look for it above that level. wait for a close above that. >> #chicken. up next, vladimir putin making histories. the comments on the sanctions on russia, and what it may mean for the u.s./russia multi-national stocks. i make a lot of purchases for my business.

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visa and mastercard vowing to stay in russia despite a new law allowing russian officials to confiscate funds. vladimir putin speaking to cnbc earlier today. he addressed the sanctions placed against his country by the west. take a listen. >> translator: these sanctions are absolutely illegal, unlawful, and, of course, they decrease -- they make our relations worse. we are now hearing about the third package of sanctions, and i have a question in that regard. why? >> what does this do to the r e russian trade? >> i was meeting with companies, and they were seeing if they got one. it's the equivalent of a political oscar in russia. that's how serious they took it. the st. pete forum, i have been there, not a lot of people showed up are western companies leaving russia?

no. jeff, a big fan of the show will sit down and tell you, until the white house says no, ge has a very good relationship. one that's at least strategic, and they need american corporations as much as anybody. this is the point. but like mcdonald's, busiest store in moscow. and the largest dairy was bought out. and the kraft spinout. these are companies that have real strategic businesses that are benefitting on russia. >> going back to the jay carney trade. >> oh, yeah. if you look at the march bottom in the rsx, it's up 23.5% since that level. can it go higher? next resistance is a buck and change higher. but let it level off here. because you are going to get guys chase, let them peter out and come back. >> march 26th, we should have them on. >> thank jay carney for giving

us the best on the russian trade that's existed. quick programming note, i will be live on tuesday with exclusive executives from pat and dave, and famed capitalist and entrepreneur marc andreesen. time for the final ahead of the long weekend. >> ibm, great long-term, but sell it here. >> rite aide and i'm standing up because i got my shorts on, and it's good for a little charity. thank you very much. >> just looks weird, though. >> riteaid. i bought it. >> thank you. >> kb h. for all the reasons at the top of the a block. >> memorial day wasn't created for barbecues. >> it's for would you rather -- >> no to remember the people who protect us. >> oracle.

orcl. >> after the break, forget record highs, there's a crucial sell signal sign. tell you what that is on options action which is next. that's it for us. catch more on tuesday, 5:00 p.m., i'm be on palo alto. meantime, have a great weekend, stay tuned for options action. o. you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung.

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this is options action. tonight, drug super bowl. ♪ catch me doing a massive drug conference next week could make or break a number of biotech stocks. give you the inside scoop with a special report. plus -- ♪ take my breath away that's what traders are saying about the stock market as fewer are making record highs. and one is screaming higher in the wake of apple's beats deal. >> isn't that special? >> what it is and how you can

profit. the action begins now. live from the nasdaq, i'm melissa. these are the traders and in colorado. and in the best week in a month, momentum names are regaining momentum. netflix, yelp and tesla, is this a sign that the rally is just getting revved up? get in the money and find out now. go to you, these are serious games, and they look like they're on the mend. >> i have a lot of skreept simir and about these in particular, hard to get your arms around, netflix, trading at 150 times earnings. the other ones, no earnings to speak up. 13 times revenues. carter was mentioning before the show. he was talking about penthouses in hyde park going for $250 million and beach houses in the hamptons for $167 million. are i don't know what to make of the valuations, but they have

been propelled by cheap money and a lack of someplace to put them. the market is strong, it's going to support the stocks, and the vix reflects that at less than 12. >> it's really a phenomenon when u're deeply oversold, it's a positive bounce. is that a setup for the downdraft? we're in that camp. figure it out. >> it is puzzling. we're witnessing the below the 200-day moving average. the vix is complacent, but we have the bounce back in the high-momentum names. >> a lot of these bounces -- all bounces are not created equal. how is that? okay? netflix, rallied 30%. it's a specific story. very large players involved. a whole bunch of competition issues going around. who knows what the partnership landscape is going to look like. that stock, from 400 to 300 right back to 400. that's a no-touch.

i'm not going to get involved. caught it on the short side, i got my face ripped off on the short list the second time. that's on the band list. the rest of the names, i'm not impressed with the bounce in amazon, the bounce in yelp, and linked in, for instance. these are three nasty-looking charts. mentioned the rustle, and the s&p closed and all three up on the year today. that's the first time in a long time today, but the rustle looks sick to me. >> yeah, the structure of the russell is terrible. that's your point. the issue is we know the s&p and virtually unchanged. it's under the surface that parts are getting hurt and bouncing back. and equities anding a got are getting nowhere. and the mean reversion that's taken place. this looks at the russell growth and value over the last two years, and you see how, of course, we've had a reversal of

fortunes. there's a collapse in growth, and a reemergence of value. but look at the same chart on a five-year basis, the spread is still quite epic. that makes the case, dan is making the case, you should not be chasing some of these bounces. >> that being said, i have to make one point. you can't short a dull market. we talked about, the spy has a failed break youout, that's the to go for. that closed at 1900, that's a beautiful consolidation that you can see in the large cap index. >> there's a big difference between sitting here and saying we're going to short this and saying i'm not going to participate and try to chase what are overbought winners by going after the momentum stocks. we're all on the same page. i don't see how people get enthusiastic if you're taking a look at what's going on under the surface. >> tonight, a trade on twitter, walk us through the thesis. >> this is interesting.

it's disconnected with the market when you think about it. and i have to tell you, looking at the stock today, it had the lowest closing low ever today at 3050. to me, this is one that, you know, the fundamentals are what they are. we don't really know yet. the company has not common stra demonstrated that they can engage users. facebook did right out of the gate as a publicly-traded company. user growth is anemic. they have two quarters since they have been public, and they've really missed on those levels. so to me, the next identifiable catalyst is q2 earnings, probably in early to mid-august. that's going to be the opportunity where investors and analysts alike, let me tell you, analysts are mixed on the name. 8 buys, 16 holds and 8 sells. they have an opportunity to see if they should be publicly-traded. make one other point.

twitter has an $18 billion market cap. if they had not gone public, i'm telling you this would have been one of the hottest private properties out there. if you think about the fact that facebook paid $19 billion in cash and stock for what's app. you have to look out to september. i want to put a trade on here. probably what it breaks 30. 26, the ipo price, big support. if we get a switch down next week, this is a trade. it's a place holder. define a range to get lock on the down side but also on the upside. >> i like this tried. one of the reasons is this was a name before the ipo, a lot of people speculated, what do you think it's worth? the number was 12 billion bucks. that was before legitimate revenue growth. 2015 revenues probably around 2 billion bucks. and look at facebook. when you have oversupply of stock, which you have here, this is a situation they are starting

to see growth. this is unlike the netflix and teslas of the world. this is a lot of skepticism. >> today, it was 30.65, i was looking out to september because there's no august options listed, and i want to catch that next earnings event. today when the stock was 30.65, you could have sold the september 26 put for $1.45, and used the proceeds to buy the september call for $1.45. cost you nothing. what you have done is put the stock on 26 september expiration. start losing from there. at 3, you have unlimited risk. there's a lot of asymmetry to the trade. between 36 and 27 you wouldn't lose anything. mark the market between now and then, as the stock is closer to 26, you'd make money, and make it as it got high perp this is

creating a wide band for something that's a volatile situation, a controversial story. let me tell you, if you get a move like facebook did in 2013, once they're able to demonstrated to street and investors how they were going to monetize their user base, this stock could go 40, 45, 50. start skipping up like that. >> you get the long stock if it's put to you at the ipo price. and the stock doing three times the revenues that they were at the time of the ipo. that's when you need to know. >> we're stuck at the lock off of 30. there's no indication that you should do anything but take a wide band. >> no fear. the vix hitting a 14-month low today. what's that mean for stocks? >> here's how it lays out. the vix is the fear gauge of the market. it gauges where options are price, with the market volatility. closed below 11.5 today. what's crazy is that the vix has only gotten below that 11.5 mark

one other time in the last seven years. so what's happened recently when the vix has fallen below that 12 level here. as you can see on the chart, we circle them, it's come ahead of near-term weakness or pull backs in the market. on the other hand, options traders aren't predicting turbulence here. five times as many calls as puts traded today. but many were sold at the bid price. meaning that a lot of traders are betting against the spike in the vix. they're selling away any upside in the vix. so a very interesting trade on volatility to watch. back to you. >> thanks so much. the market at all-time highs, the vix at multi-year lows, have investors become too come place e entitle. check in with carter. >> the day to day volatility are high. the real issue is a breath issue. and breath is a very important thing and it's been weak for months. here is one way to measure, it's

the advanced decline line, and i've used a broad index. the new york stock exchange come positive it, stock only. you have a series of higher highs and higher lows, we have a stall that's taken place for about four and a half months much it's not improved even as the market's gone higher. another way, this is even worse. this is the s&p over the past two years, and yet if you track the percentage of stocks in the s&p or the new york stock exchange composite that are above the average, this peaked a year ago and declining since. it's a function of fewer stocks participating in the rally. where to go and look for the complacency, it's the dow jones transports. here is the dow jones itself versus the 20 transports.

this is a two-year chart, and obviously quite clear that the spread is quite extreme. year to date, the dow is unchanged, transports up 8%. look at longer term charts. this is the five year chart, again, dow jones industrial, 30, versus the 20 transports. the spread is quite epic. here is ten years. you're starting to get the message. and here is as far back as we can go to the 1980s. this is not sustainable. and our bet is that this is where the complacency is as great a risk as anywhere. a one-year chart looks orderly. but the principle is this, so far above trend, and it's a wel wel well-defined trend, play for the mean reversion, and as it fails, we will make the bet it will stall. go short the iyt. >> mike, how do you implement that? >> ima think the easiest way too

this, and selling at the near term volatility, i think options are grossly underpriced. i'm going to buy the december 140 puts in the iyt. pay $6 for those. and to finance that, sell the july 140 strike puts for $2. what's interesting, i get net long options, obviously if volatility pops, take advantage by seeing the increase in value, but the other thing is, if the institutional traders selling those vix calls are right, we actually might see a brief period of relatively low volatility leading into it. i'm using the near-dated options to advance the long puts overall. >> dan, i have a feeling you like this trade. >> i do. but on the show a little more than a month ago, i tried to pick a top in the iyt, it went straight up. i think if you do this, you have to do what mike's doing. even with vol low, you are

financing the longer-dated puts. in this market, it's going to break out. the large caps, iyt will be part of that. look to finance the down side for the mean reversion. >> send us a tweet at the options. right after the show. and tonight, mike has a bullish trade on mankind. in addition, you'll find educational material and the hottest options news. check it out, coming up next. drugs and money. >> stingers, pal, stingers. >> no, we're not talking about miami vice, we're talking about the biggest drug conference in the world. and it could make or break biotech next week. and the good, the bad and the ugly. dan had a number of winners and loses. which he's sticking with and which he's folding when options action returns. ♪ ♪

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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. . it is the pharmaceutical e equivalent of the super bowl. game seven of the nba finals and the world series. all in one, hence the faux sports music. can we expect any blockbuster announcements. meg is breaking that down. >> so analysts say this year is a big pharma focus meeting. that's what we're hearing, but, of course,s it the bioteches that always move. and there are names that are watching closely. there was a data drop, unwas insight, they have a improved drug, and a hot drug in immeow know therapy.

and analysts looking for more data that could reverse the declines. more data at the meeting. another is clovis. expecting more at the meeting which could be good. and an approved drug, pulled last year due to safety concerns, back on the market. looking to see doses and the patients. and the big mover, that was bristol meyers got downgraded after the data, with the immeow know thera -- immuno therapy. see this if they do that after the downgrade. >> thanks for that. one thing you notice about the charts, most of the names peaked beginning of march. so will this help? >> yeah, the big space in bicycle tech was specifically the oncology drugs.

t the cancer drugs in particular. that was the growth opportunities. they trade at astonishing multiples because their speculati speculative. a lot of companies in the same space, one is cell gene. and the way to capture the plays without the risk on the high volatility with insight or clovis, both are expected to move 16 to 20% in the options market, just play ibb. take advantage of the fact that options prices are up. not only because of this, but there are health care conferences. goldman sachs is having one. sell a put spread on ibb. the one that i'm looking at specifically is the july 225. sell the puts, and protect yourself for 6 bucks. you're collecting 40% of the distance between the strikes. you're taking advantage of the facts there's a lot of news in

the space between now and the end of june. and you get to collect money if it just sits here, which is what ibb has been doing. >> ibb is dominated by the big names. and they are not expensive. so you have that underlying component. >> but what's your take, carter? we were discussing this during the break, and you said modestly, you said i did call the top back in the end of february, precisely the top, by the way. what do you see here? >> here's the thing. once you have something extended, like the transports now, and it does indeed correct a certain percentage, do you press the short and cover some and go from there? at this particular time, the ibb is a pair of twos, not bearish or bullish. fair money, dead money. >> that's how we're trading it by the put set. >> at it again. and a winning upon car a trade, and a loser.

but now a plan to make for money with tech stocks. find out what it is when options action returns. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

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with the mobile trader app. from td ameritrade. . talk about streaming higher. shares of pandora up 9% this week. here's how dan cashed in. on options action, sometimes risking less to make more isn't quite enough. sometimes you want more cash. and that's just the case with dan's bullish bet on pandora. they thought the shares were about to sing a happy tune. >> i think it could be in play and reasonable, and could be the sort of acquisition target that makes sense for a lot of deep-pocketed players. >> but just buying the stock. come on, dan, 100 shares set you back $2,000. so to spend less, he brought the september 28 strike call for

$1.50. he needs it to rise above $28, or $29.50. but spending a buck 50 to get in, dan, you're ferlgting our number one rule. >> you cannot make friends with the rock stars. >> actually, it's always limit your risk. so to cut costs, dan sold the december 35 strike call for 50 cents and created his call spread. but he did something better, he made making money easier, and between the buck 50 and the 50 cents with the higher strike call, dan is now laying out just one dollar. and now instead of needing it to rise above $29.50, but he needs it to get above $29 expiration. >> he should work for nasa or something. >> or star in options action. because since the time of the

trade, shares have arisen 10%. all are screaming the same question, how can we make even more cash? before we answer that, let's see how much dan has made. shares are up 12%, so not too shabby. but dan bought the call spread for a buck, and it could be sold for $1.40. how do you make more cash from here? >> you sit on your hands and don't do anything. see if the apple/beats deal finishes, who's speculating who's next. this is one where i think do very little. you have it where you want it. we chose out of the money for a purpose. we have a nice range of potential possibility if this stock can just go up another 10, 20%. >> all right. but it wasn't all dan -- tastic for you, the qs struggled. how are you halgding this?

>> traders know, you have to cut your losses. the etf broke out here. the thesis was large cap strength, follow the smaller cap higher valuation. the options i bought were 50% what i paid. i cut them and look for a better entry. >> you think soon though? >> i think it's very soon. doesn't matter if it's the qs or the russell, and i'm looking at the rust se that. having short deltas, i don't see how that's a bad move here. >> up next, the final call from the options pits. ♪ ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today

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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. . time now for the final call. last word. dan. >> yeah, if twitter goes lower, bullish risk reversals. >> transports are outperforming the dow, sell iyt. >> options are incredibly cheap.

do not sell them. >> looks like our time has expired. i'm melissa lee. check out our website, and the daily segment inside fast every weekendday. see you back here next friday for options >> 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 to educate, teach and put it in perspective. e-mail me or tweet m