then money, then things. now, you stay safe. bye-bye. . this is "options action." tonight. >> $100 billion. >> well, maybe not that try. one hit triple digits. we'll tell you how to cash in. plus, forget open table. because old tech could still be your best bet and we'll give you the fame traders are buying. and sure shows what biotech did the woke. we will tell you why there are

more gains to come. the action starts now. live from the nasdaq site, i'm melissa lee. these are the traders in time's square. it was a quick. the s&p is closing you on the day, today's move following a similar pattern, check out this cart. each time a geopolitical crisis cleared up, the s&p experienced a pullback. so can we experience a similar result this time? it's the biggest gain for the 84 this woke. >> it's interesting, because we are looking at oil in the context of the last year or so, if we go back and take a look at previous geopolitical events or market turmoil. go back to 2011, we saw crude oil go up about 20 bucks and fall more than 20 if 45 days that follow it. it is higher on the 84, but it is not going on a wild wild

speak. we know it's the geopolitical turmoil. water interesting, tow, is the vix is not sharing the same concern. the oil markets are saying this is an isolated problem on tear end. >> what did we see this week? gold up a percent, equities up a percent. we saw a little bit tomcat me, yes, the vix is off a very low base. it closed 10%. last 84 it was off seven-year low, earlier, they talked about ties crises situations, how we is rugged them off. those are in a volatile environment. when you think of the different moves we had if an asset class, can you almost say in a slow trading period, maybe it's the start of something. >> the riskoff would be the concern about the correlation of assets, when riskoff happens, what happens? everything goes down towing.

pacific, in previous crises, what you saw is equities and crude were positively correlated him everything els fell, that's not what we are seeing. >> at the same time, this is early on. i don't want to turn this into an oil production, what will you see production? >> 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, i mean, the market has not fallen. options prices have not risen, you get these different things going on, these are the clues you should be thinking of doing something. >> to me, back to the crisis fadebook, if you traded when those asset crisis move, you would have made a lot of.so i want to look at oil. we have a crude chart here, it's a great looking chart. when you look at the breakout

105, those last three instances, i couldn't get through 105 him i think it's related to the rebels in iraq. maybe you see a test of that higher high. you want to sell it. it's a trading opportunity. >> so you are using uso for a trading opportunity in. >> usa etf. i think we get backed up toward 40 that would be the prior high, i think you look out of the.and i think these things trade -- listen, i'm not a park genius, a lot of commoditys trade technically. if i have a failed breakout of 40, i'd like at a 38, put spread, it costs about 45 cents paying 65 cents for an august 28 put and selling the august 26 puts at 20 cents, my max loss

there is that 45 cents. i can make almost three times my money him i'm targeting tech next am levels. 38 would be the federal government support level. then tricks is the 200 day moving average, which would be a big level. >> absolutely, commodities trade heavy. i think the fundamentalals are good as well. let's bear in mind, demand, the united states is falling our diplomacy on middle east crude is continuing to increase. we seem to be headed towards enerand energy and dependancy. >> to me, you want to fade these sorts of crisis moments because we know, history tells us, crude is not going to 130, pause we are not having that moment. it's a low roeblt. >> appetizi-- low probability.

>> mary thompson is at cnbc breaking the apple story down. >> the results on the average the total football of apple contracts have traded both puts and calls have increased 60%. the increase was expected as the stock had gotten keeper, so, too, the options, maybeing it volatile to trade. the dollar declined in the first week of trading. in may about $300 million apple options traded every day, the week, that number fell to about there were 100 million. what does this all mean? now the stock is cheaper, perhaps some investors are more comfortable buying or shorting themselves, and have less of a need for those options. >> where are shares of america's popular stocks? let's have a see. >> let's see if we can figure it out. this will start with the sector, which apple is the biggest part.

this pecks up the picture since the low of march '09. what we know, of course, is when an santorum stays in that channel, if you will, the probablys are we will continue to do that. we are due for a little more, this has strength from enemies and microsoft and we think ultimately a little higher. one thing that can add to this is, of course, apple. here are two charts, apple versus the xlk absolute and obviously am has been a big willi laggered. here is a two-year chart relative, two-year chart relative. xlk, apple. i held the xlk as a constant. what was important is we held the le. now we look leak we are complete this formation and make it back to parity, if you will.

final cart, here's the absolute chart at apple. seven-year high, split adjusted. if you like to name your patterns, you can call this a cup and hand him. we know the stock has just jumped from 75 to 95, a little back off. ultimately, the conclusion should be a perfectly symmetrical move back to the high. we think you get to parity at 100. >> so a higher move is what carter has seen. dan, back to the fundamental story, we are entering the weakest quarter for am. we don't have a catalyst? >> it's a iphone story. that got it sparked. people focus on the dividend raise and buy backs. i think that's a part of it. i think people want to see them selling more iphones. this quarter who is going to go out and buy a new iphone when they know the 4.7 screens are coming out in the fall. i almost think they get a pass.

the higher it goes, have a ball, it's up 7, 8% here. to me it's a risk that that product falls flat in september. >> i see a potential point of resistance. what do we have? earnings in july, a fawn event. have you the new operating systems and the devices that come with it. everyone will have to wait to see when that shakys out. it's kind of hard, this is a level where everyone wonders if the law of large numbers apply to apple. >> we saw riskoff in the markets yesterday. we saw apple pull back after that 20% rise. >> i think appetizingle is a huge risk. apple is 3.5% of the s & p. the xlk he was talking about, it's 13.5. so does the market, so goes apple. >> you have to say, there is an oldic pression in which stock is

entitled to do something, it is entitled to pull back from 95 to 92. perfectly formal reaction. should this stock hit the past high. the odds are very high it gets to 100, 10% higher from here. >> meek, you have a trade. >> if you follow carter's advice, i wouldn't buy the stock right here, the options are expensive. people trade less notionally. i think it's important to know you can use them to your advantage, i'm looking at the october into spot. it paid about 4.5 bucks. you will get to make a bullish bet, costing less tan 5% of apple shares right here. >> even though the price of options is really low, the stock sets up really well for put sales for those of you who want to get if. if you look at the cart, that

$85 level is the 50-day moving average. it was the level the sock consolidated to for a month before it took off. i'd look out to look to sell the 85 puts and do a risk reversal and buy upside calls. >>ly admit apple ends up well for the put selling. the reason is at the end of the day, underneath all that is a buck of cash. the downside is more mootd. >> it sound like both of you might say,ty about a stock replacement strategy. >> that's why put-sells make a lot of sense. >> send us a tweet. if you want the hottest news off the options floor, there is obviously one place to go. >> good entell? >> this tape will self-destruct if five seconds. >> shares of the chip giant are surging and one trader sees it going even higher we'll tell you how to make money. plus, how does mike co-feel

ability biotech? >> you. >> it's not quite that strong, but he does have a way to peak.and he'll show you how when "options action" returns. ♪ 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.

♪ [ 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.

. >> talk about a biotech bo nan have a. the by otech biotech is up if a month. on "options action" it's how we trade like 69 tick geniuses, that's what mike did on biotech, he looked at the biotech etf under the microsoft and figured it was going higher, one share would cost more than $20,000. >> what would you little maniacs like to do first? >> well, for starters, how about spending less? to make a different bullish bet, he sold the strike put for a $10 credit. now shares of the etf stay at 235, he gets to keep that cash. mike sees profits at 225 at july expiration. below that, he could run into

big trouble because by selling that put, meek 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, mike ten bought the july president for $6 and created his bull put spread but he did something else, he put the odds in his favor. he sold the higher strike put and the lower streak put, meek took in a total credit of $4. that's the most he can make on the trades. mike won't see losses until the etf falls below that high put strike price by more than the $4 he put in or below $231. below that level, mike be see losses, by boy tag 225 strike put, meek has protected himself below that level. in other words, mike found a way

to do something the greatest scientific minds haven't been able accomplish, make money, whether the shares go up, down, or nowhere at all? since the time of the trade, the etf has surged about 6% making the trade a winner. but doctors everywhere still need to know one thing, what will mike do with his biotech trade now? that's a good question and answer, mike. this thing has made about half the money you already kept. have you to be careful with your limit orders. i would probably close this and roll this out? >> carter, what are you seeing with ibb? >> this was the highest mark and had pounding off the march high. we retraced a good percentage him we think the retracing has a little more left in it. we would stay long the pattern. >> 275 was that high. >> if you look at a dig i be ig stock, netflix, when you get back to that high, you kind of

reclaim but falter. we think you get there but don't exceed it. >> all right the good fuse doesn't top, there are time for the outside call times too, we look back on not one but two winners. because on that same show, a good show, he made a bullish bet on twitter. sales rallied almost 20%. what do you do now, dan? >> this was a risk reversal. we use the put for the downside call. so right now the september 26th put is about a ten delta, the options stockmarket saying there is a 10% chance you cover the money. you cover it at 60 cents, now have you this september 37 call at the money, this is really important, people, that's 50 delta, there is a 50% cans that will be money. you will want to do something, i would say given the move the stock has had, you probably sell it by having a higher strike

call, one other then, mech nailed this yesterday on fast money. he was talking of a massive buyer in september, how many did they buy? 80,000 to open? >> this is definitely you want to stay long that call and look to spread it. if you take a look at what facebook did after it bent right into the seller, when it started to rebound, it recovered strongly, a lot of people bailed out soon. >> on a fundamental basis, we have the management basis that could more tend good user engage. . we have these world cup pages carter on the technical side, what do you see? >> after the unlock, right, all the shares, you are encountering now where that event will occur. you returned to a considerable level of all red supply, basically 3940. so we would be inclined to not get along here. >> coming up federal governmene

for intel. one trader thinks it can get even better. find out why when "options action" returns. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

[ bell ringing, applause ] five tech stocks with more than a 10%...

change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

. shares of chip maker intel surging after they boosted second quarter forecast due to strong computer demand by businesses, the excitement carried over into the options pit. it saw some very big bullish trades. so, dan, what did you see today? where do you see intel heading? >> the stock was up 3r77%. to me, this chart, we will talk about the options trade. the 11-year chart touched ten-84 highs at 30 today. one trader in okay, they took off a bullish bet, they sold 25,000 o. october 30 calls at 1.08. rolled it up to 75,000 about doctor 2 million. when you think about it. the break even now is 12%

higher. you are getting back to all time highs in the last 15 years here before the tech bubble. so to me, this is not a stock you want to chase up here. look at the move we had over the last year or so, when the company finally after missing quarter of quarter says enterprise pc demand is better, they guide up 5% in the out quarter this is a level to me i think you want to fade, the expect eights massively high, they really need a big raise for this stock to keep moving. >> we see a lot of stock where it hasn't been anywhere for ten years, that brakeout is more believable. >> right. >> and stronger. >> right. i guess the issue here is where a gap occurs. when you are at a well defined low, that's an important thing. it's a run away gap. when you are at the top of the range for ten years, you have a

feeble gap. it often is a bit of an exhaustion gap rather than a break away gap. we look at it in the sense, you eeked out a slight new gain, it's not a convincing type of thing. we would fade it. >> we are looking at a ten-84 chart, if you look at revenues, it doesn't tell you a good story for this ga name. i won't be convinced because of today's announcement that is telling us the secular head winds have somehow turned around. this is a taken where we have seen negative top lean growth year on year three years in a row. so from my perspective, this is not a growth stock. it wasn't last week. it isn't this week, option, maybe that would be the only way i would play it on the put side. >> the boost if pc is business pcs, that's because of xp. that's no longer supported. maybe a one of thing. >> they have new management, a new ceo in there, they have not

preannounced positively in years, if they have used this bump sense microsoft stopped supporting xp because businesses went out and bought pcs, notice they didn't say anything about consumer marks or tables or smartphones, so really july 15ing will be a very interesting report. >> coming up next hour on mad money, get yourself ready for father's day, it's kramer's annual family affair show. primes will be in your college fund. stay tuned for that, coming up next the final call from the action's pits. [ 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.

♪ [ 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. . it's time now for the final call trkt lastword. >> get short intel. >> happy father's day my dad and father-in-law. >> mike. >> options are cheap. so for another week that's our good news, that's what you should use if you want to get

short intel on apple. >> it looks like our time has expired. i'm melissa lee, for more insight, check out optionsaction.com. watch for the daily segment. don't go anywhere, "mad money" starts in a few seconds, happy father's day, everybody. have a great weekend, everybody. >> female announcer: the following is a paid presentation for the new zumba incredible results system featuring the new zumba rizer brought to you by zumba fitness. >> zu-- zu-- zumba! [ cheers and applause ] [ cheering intensifies ] [ latin music plays ] >> male announcer: get ready, because the number-one branded fitness program in the world is better than ever.