then money, then things. now, you stay safe. bye-bye. . this is is "options action." tonight. >> $100 billion. >> well, maybe not that high. but one trader made shares that will soon hit triple digits. we'll show you how to cash in. plus, forgive open table, old tech could still be your best bet. we'll give you the name traders are buying. and, well, that's cheesy, it shower shes what biotech did the week.

we will tell you why there are even more gains to him co. the action starts now. live from the nasdaq markets, i'm melissa lee. these are the traders here in time's square. well, that was quebec the markets are shruging off the least turmoil, today's move following a similar pattern, check out this cart. each time a geopolitical crisis is cleared up. the pull back always recovers and rallies higher, so the we expect a similar result this time? oil's biggest gain for the year, this woke. >> well, it's interesting, because, of course, we are looking at oil in the context this is the last year or some if we go back and take a look at previous geopolitical events or park turmoil, go back to 2011, for example, we had a couple month period, we saw crude oil go up about 20 bucks at that point, fall more than 20 if 45 days that followed it, this isn't as incred bring volatile as you might expect.

it is not going on a wild spike. we know what the response is to, the geopolitical turmoil, the vix is not sharing the same concern. it seems to me, the oil markets are saying this is an isolated problem. >> you say that, this week what do we see? gold up 1%, bond up 1%, equities down, the s&p, we saw a little bit. to me, yes, the viy closed seven or ache-year lows, so really that chart, those are in higher volume environment, when you think about the moves we had among different asset classes, you could say in a slow summer trading period, maybe it's the start of something. >> the risk off, when it

happens, correlation and everything goes down together. you saw equities and crude were positively correlated that time. people were taking everything off the table. everything fell. >> at the same this is early on. i don't want to turn the into an oil discussion, if we see the rebels move into the south of iraq. >> people should be more than they, are actually, i think one of the phenomenal things the market has provided for folks over the course of the last couple weeks is that you have still got a phenomenal opportunity to hedge. the mark has not fallen, options prices have not risen. you get these different things going on, these are the clues you should be thinking about something. >> to me, back to the crisis playbook, if you faded every one of those spikes, when those asset things moved, i want to look at oil. we have a crude chart here, it's actually a great looking chart, when you look at the breakout

above 1015, you look at that prior hire high, those last two instances or three instances, they couldn't get through 105 i believe it's the stuff going on in iraq. if the rebels interrupt production, maybe that's the spot i think where you go if and you want to tell it, because it's a trading opportunity. >> so are you using uso, what's the trade? >> uso etf. if it gets up to a one-84 chart of it towards 40, that would be the prior high, i think these things trade, i'm not a macrogenius, i know a lot of commodities trade technically, i'd look at an august 3836 put spread. when i priced it, paying 65 cents for an august puts and selling the august 36 puts at 20

cents, my max loss there is that 45 cents. i can make almost three times my money. i'm targeting technical levels. 38 would be the federal government support level and ten 36 is the 200 day moving average. >> yes. slightly commoditys do trade heavily. the fundamental also are good case as well. let's bear in mind demand is falling. our dependance is continuing to increase, we seem to be headed toward energy and fps right now. so with those two factors if mind, i think people would be very foolish at this point to think crude is going to rip right here based on what is going on. >> to me, you. to fade these sorts of crisis moments, we know, history tells us crude is not going to 130, we will not have that event. >> let's talk about apple. they are having a worst week in a month. it has had an unexpected impact

on the options market. >> i know, the results have taken some by surprise, on the average, the total football of contracts traded, calls have increased, it was expected as the stock had gotten keeper on a dollar basis, so, too, have the options, making them more affordable to trade. while volume totals are higher the dollar amounts of the contracts declined in the first week of trading. in may, about $300 million of apple options traded every day, but this woke that football fell to about $100 million. what does this all mean? mou the stock is keeper again on a dollar basis, perhaps some investors are more comfortable buying or shorting the shares, themselves and have less of a feed for those options. >> pare, tanks for that. so where are shares of america's most popular stocks headed next? carter, what do we see? >> let's have a look, see if we can figure it out. this will start with the sector,

apple is the biggest part. the picks up the picture since march of '09. what we know, of course, when any instrument responds well to the top or bottom of the can el and stays in that channel, if you will, the probablys are it will do that. we are do you for a little bit more. that has strength from apple, so forth, microsoft was a little bit higher. one thing that can add to this is, of course, apple. 450er heir are two charts, am versus the slk, absolute. apple has been a big laggered. what is impressive apple's recent strength relative. here's a two-year chart, absolute, here's a twof-year chart relative. being again, absolute, up slk, apple. here's relative. here's what's important. i held the slk as a constant. what is is important we held the low. now it looks as though we will

complete this formation. final chart, here's the chart of apple. here's the 705 high, split adjusted. if you like to fame your pattern, can you call this a cup and hand him. we know it has jumped. a little back off, ultimately, the conclusion should be a perfectly splet trickal move back to the high. we think you get the party to 100. >> a higher move, so in terms of the fundamental story, we are enentering what is traditionally the weaker story. we don't have a catalyst? >> it's an iphone story, that got this walery sparked. a lot of people focused often the dividend raised and the buy backs. so this quarter who the heck is going to go out and boy a new iphone when the 4.7 screens are coming out in the fall. i don't get it.

i think they almost get a pass. it will trade 100. have a ball, it's up 7, 8% from here. to me, there becomes increasing risk that falls flat. >> i take the least resistance there, we have earnings in july, a fawn event. the new operating systems, everyone will have to wait to see how that shakes out. it's kind of hard. this is a level where the larger love of numbers will apply to apple. we have to think about that again. >> we saw apple really pull back. after that rise and today again earnings finished higher. >> i think appetizingle is a huge risk for the market. apple's is 3.5% of the s&p. i think it's 5% or something from the nasdaq 100 t.slk he was talking about is 13.5%. so me, so goes the mark, so goes apple, so goes the market.

>> there is an old expression in which stock is entitled to do something. it is entitled to pull back from 95 to 92. should this stock hit the past high the odds are very high it gets 100. >> the good fuse is positions are inexpensive. all tow people seem to be trading less, i think it's important that you can use them to your advantage. i'm looking at the october '92.14, that's a convenient strike. 4.5 bucks tore host t. price is relatively low, you will get tote a bullet print without risking a lot. >> you know, i would say even tow the price of options is really low, this stock sets up really well for put sales, for those of you who want to get in than committing a long prem

dwrum. you look at the chart that, level is a 50-day moving level, it's the level the stock consolidated to for a month. i'd look to sell the put and do a risk and buy upside calls. >> i will admit apple among the names out there sets up well for downsouth island put selling as well. the reason is because at the end of the day, underneath all that is a big bucket of cash t. downsouth island risk is more pouted. >> it sounds like both of you goes might say, think about a stock put replacement strategy. >> got a question out there. sends us a tweet at cnbc options. options actions@nbc.com. here's what else is coming up. good intel? >> this tape will self-destruct if five seconds. >> chips of the chip giant is are surgeing, one is going even higher. we'll tell you how to make

money. plus, how does mike koe feel about biotech? >> you, me. >> it's not quite that strong. he does have a way to make money. he'll show you how 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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. biotech bo fan za, it's good news for our friend mike koe. here's why. on "options action," it's how we trade like scientific geniuss, rick less so we can make more. that's just what mike did with his bullish bet on biotech. he looked at the biotech etf under the microscope and fixed it was going higher, one shares would cost more than $20,000. >> what would you little maniacs like to do first? >> well, for starters, how about spending less? for a different bullish bet, he sold the july put for a $10 credit. notice shares stay at about 235, he gets to keep owl u all that cash. pike sees profits as long lo as the sales are above 225 at july expiration, below that, he could

run into big trouble. that's because by selling that put, peek could be forced to pay $235 for shares of the ibb, even if they fall all the way to zero. >> so what do we do? >> well to define his risk, meek then bought the july 225 put for $6 and created his bull put spread. he did something else, he put the odds in his favor and here's how. between the ten bucks he checked by selling the higher strike put in and the $6 he spent on the lower strike put, mike put in a credit of $4 that's the most he can make on a trade. even if the ibb falls below 1235, meek won't see losses until the etf falls below that high put strike price by more than the $4 he took in or below $231. below that level, mining will see losses, buying that 235 strike put mike protected

himself below that level. in other words, meek found a way to do something the greatest scientific minds haven't been able to accomplish, make money whether the shares go up, down, for the where at all him sense the time of the trade the etf surged about 6% making the trade a winner, but doctors everywhere still feed to know one thing, what will mike do with his biotech trade now? let's get straight to that question and answer, mike. >> the answer, very simply, this thing made half of the money, you have to be careful with the limit orders, i would probably close this and rom this out. >> carter, what do you think ability the ibb? >> it had some of the worst pounding down 20% off the march high. we retraced a good percent avenlg of that, we think the retracing has a little more left in it. >> do you think we could reclaim those levels again? >> so what happens, you look at a netflix or a priceline in this

space, when you get be baaing to that high, you falter there. we think you get there you don't exceed it. >> it will be quite the upside from here. the good news doesn't stop. the upside call times too, we look back on not one, two winners, the same show, a bullish bet on twitter, shares rallied almost 20%, what do you do now, dan? >> we sold the downside put and used the proceeds for the call, so right now that september 26th put is about ten delta, the options market stled is about a 10% chance that will be in the money. now you have this september 37 call that is at the money, this is really important, people, that's a 50 delta, a 50% chance that will be money, you will want to do something, that is worth a lot more than you paid for it. i would say given the mood the stock has had, you probably spread it by teleselling a

higher call, take the risk off the table. mike nailed this yesterday on ""fast money,"" he was talking about a massive buyer, if september of the 50 calls, 80,000 of teets calls to open. >> you definitely want to stay long and look to spread it. you look at what facebook did after it basically went right into the seller, when it started to rebound, it really did recover strongly. i think a lot of people bailed out soon. >> on the fundamental basis, we had the manage:shakeup in terms of user engagement. we have world cup pages that could monfy, what do you see? >> dan was calling for trouble. after the unlock, all shares, you are encountering now where that event occurred. so you return to a very different little of all red supply. that's basically 3940. so we would be inclined to not go long here. >> coming up next, it has been a huge day for shares of enthem.

one big trader can get even better, find out why when "options action" returns. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.

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[ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

. >> shares of chip maker intel surging today after the stalwart boosted due to businesses. the excitement carried over to the options pit, it saw twice the volume in big bullish trades. dan, what did you see today, where do you see entell heading? >> the options volume was off the hook. oms it had to be one of the biggest gap days higher in years. when you think about this cart, to me, i want to bring it up here, it touched the ten-year highs at 30 today and so, you know, one trader in october, they took off a bullish bet. they sold 25,000 o. october 30 calls at $1.08. they rolled it up to the october 33 call buying 75,000. that's about $2 million. when you think about it.

the break even is 12% higher. you are getting back to leak all time highs in the last 15 years here before the tech bubble. so to me, this is not a stock i think you want to chase up here. look at this move that we've had over the last year or so, when the company finally after missing quarter after quarter says the enterprise pc demand is a little better guide up, 5% in the out quarter. this is a level to me i think you'd want to fade, because the expectations massively high for july 15th, they need a big beat if raise for this stock to keep moving. >> we see a lot of stocks, where it hasn't been anywhere and there is a massive breakup. it is more believable and stronger. >> right. i need to foe where a gap occurs. when you are at a low, i gap off the bottom, which facebook did, that's an important thing. it's a run away gap. when you are at the top of a range for ten years ago you have

a feeble gap, it wasn't a conventioning gap, it is an exhaustion gap rather than a break away gap. so we very much look at it in this sense, it's a big move to a different level. while you haven't eeked out a gain, it's not a convincing thing. >> we are looking at a ten year chart, few look at a ten year chart of revenues, it doesn't tell you a good story, i am not going to be conventioned because of today's announcement that is telling us the secular head winds have somehow turned around. this is a company where we have seen negative top lean growth year on year for three years if a row. that's not keeping up whenflation, from my perspective, it wasn't a growth stock. options, that might be the only way i'd provide it on the long slide. >> in terms of this boost, business pcs, that's because of xp, that's for the longer supported. maybe a one off thing. >> it could be, a very interesting move. they have new management, a new

ceo in there. this company halls not announced positively in years. if they are using this little bumpitative gotten since microsoft stopped supporting xp because enterprise businesses went out and bought pcs, notice they didn't say anything about consumer markets or tablets or part is phones, july 15th will be an interesting report. >> coming up next hour on "mad money," get yourself ready for father's day, kramer's annual family affair show, tonight, prime to be in your college fund. stay tuned for that, coming up, the final cule from the options pit. [ indistinct shouting ] s

. time now for the final call. carter. >> a great super tech pair trade, get long apple, get shorten tell. >> happy father's day,py dad and my father if law. >> mike. >> options are cheap. so for another week, that's our good fuse, that's what you

should do you want to get shorten tell. >> it looks like our time has expired. check out the website options action.cnbc.com, watch fast for the daily segment. don't go anywhere, mad money starts if a second. happy father's day, have a great weekend, everybody. >> announcer: the following is a paid presentation for derm exclusive instant anti-aging, brought to you by beachbody. [ cheers and applause ] >> wow. hi, everybody, and welcome. i'm deborah norville -- journalist, author, wife, and mom -- and today i am joined by grammy-winning music superstar chilli of tlc. woo-hoo! [ cheers and applause ] and television phenomenon turned entertainment reporter mindy burbano stearns. [ cheers and applause ] now, what do i have in cn