♪ this is "options action." tonight, jackpot. vegas gaming revenues are soaring. but what is the unlikely winner traders are betting on? >> and we'll tell you why there's a problem with yahoo and where you can cash in.

and we'll tell you what it could mean for the market's rally. the action begins right now. >> these are the traders in times squa one major question looms, what will send stocks higher in the second half? dan, what are you thinking? >> this week, we got some earnings. nike last night, they were fine. dupont gave a disappointing outlook. the stock got hit hard. a holiday-shortened week next week. when investors get back, they will be focused. bank stocks, many report in the second week of july. that's going to be really the first look at some of the largest companies, what they're

thinking for the second half of the year. >> this is a space that some investors love to hate. probably what they're going to be announcing, people would be buying them hand over fist. -- the diverse financial -- they're even cheaper. trading at about 11.5 times. obviously, there's a lot of concern. so much headline risk, regulatory risk. >> and did you see that? the three money centers, down over the year. and some up. and to me, that's interesting, because investors don't know what to do with them.

and looking at european financials, closed down a quarter of a percent down this week. if you were looking at these, you would think they would be having their annual drop. and they think they can go after -- >> and what got them into trouble, what they're doing here in the united states. and the dark pool allegations could apply to all of these banks. and u.s. regulators are going after them, for billions. >> and bank america is a perfectly fine company. so crisis this summer. but they had a couple of black eyes well-documented this year.

the rejection of the stress test, and the q 1 wasn't that great. trading volumes are not great. nothing was happening. that's not great for the banks. >> we know that already. >> we do know that. but maybe it's as good as it gets here. and for bank america, they actually had expectations for q 2 that are a little bit better than others. that chart right there, it broke that uptrend that's been in place for two years. the outlook, when they report q 2 in july, i think the stock goes lower. today, it was $15.35, i actually bought. i looked at july 11th, sold that

at eight cents. and the trade cost me 24 cents. hoping to finance a holiday period with slow trading. making a bearish bet, but doing it, kind of threading the needle a little bit here, i want to be there for this earnings event. >> and we have a situation where you're reluctant to sell options because they're so cheap, but -- you go back to august of 2011, we were trading nearly double that amount. that's the kind of reduction in volumes we're seeing. holidays, you rarely see a lot of activity. so i like a trade like this. >> so, stocks versus options.

you want to short bank america, unlimited risk. but moving on here, winner, winner, chicken dinner. vegas revenues are soaring. >> well, we learned today that las vegas revenues rose 17%. but where the strength is coming from. baccarat revenues. it's the life blood of macao. brings in seven times the revenue that vegas does. and some volatility in some of the casino stocks. the hottest calls were at mgm,

which some analysts call the best way to play a vegas resurgence. i don't know about you, baccarat, i can only see james bond and you, melissa, playing. >> i don't gamble at all. >> and we had a big event, the floyd mayweather fight, that probably accounts for some of the uptick we're seeing in baccarat. but i've also been there a couple of times each year over the last couple of years. looks like foot traffic is up, and seems like they're on the mend. he spoke to mgm.

they have ties to china. also are awaiting approval of a new casino in massachusetts. so, another potential area of growth. i would go with this one. >> and you have a call calendar. walk us through. >> i'm just looking at the july to january 26 call spread. you can buy them for about $2.50. i just don't see a whole lot going on throughout the month of july. because of the holiday and people are going to be waiting on earnings. >> and just technically, this chart acts very, very well, and

a third of their sales come from macao. this chart looks like it's ready to break out on the slightest bit of good news. >> that's a triangle of death. >> it could be. and i'm battling with that one. but if the tables were to turn, maybe the money is moving back towards vegas. i like the trade. and in this environment, you have to go with these calls. >> do you like dan's bet? it just goes on and on. what fun we have at "options action." check out our website. got the hottest options, news, and videos.

here's what's coming up next. it's the most anticipated ipo of the year. but we'll tell you why it could spell doom for yahoo. plus, it's the one thing on every trader's mind. that, and why ge is underperforming the market so badly. that's when "options action" returns. time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade.

[b♪ll rings] time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. welcome back to "options action." we've got a change in the indices to tell you about. the s&p 500, u.s. steel will be

removed and replaced by martin marietta materials. think gravel, sand, the stuff that goes into concrete and asphalt. u.s. steel, being demoted. mlm in, x out. u.s. steel is about a $3 billion company. >> and both are sort of plays on the u.s. economy. >> martin marietta, probably more on housing. looking back to the housing boom, those were some of the rock stars of the last bull market. the immediate impact is not going to be as positive. and the other thing, of the two,

i would expect martin marietta to do better. i have more hope for that portion of the economy, housing, than u.s. steel. >> and ali baba, could its public offering cause trouble for yahoo? >> well, they want to sell 40% to 50% on the ipo. let's start with the activity. yahoo, 2.5 times above the normal daily volume. that activity caught my eye in a week where yahoo was newsy. their ceo slept through a big

meeting. and ali baba chose the nyc to have the ipo, and let's talk about yahoo. 2013, rumor all year long about ali baba. investors kept thinking about what it meant for yahoo. the stock up almost 100% today. almost a 45-degree angle. but 2014, almost gone sideways. down 15% on the year. here's the year to date chart, this circle. when ali baba finally filed for their ipo, cratered here. it was clearly a sell situation.

the stock recovered, and filed an amendment to the s-1, bam. the stock recovered a little bit today. but the point i would make, all year last year, it was buy the rumor. this year, sell the news. and the options, with the big seller, this is implied volatility. look how it's moving up here. this shows you this is a name where a lot of stocks with implied volatility, yahoo's is ticking up. people are worried, marissa myers is going to be on the clock here. investors are saying they don't trust that she's going to make good decisions with their money. >> she's spent a lot of money on

little companies. >> and the story for yahoo has been largely their investment in ali baba. go back tofa a company valued somewhere between $80 to $90 million. once this starts to trade, they're going to have the cash and the underlying asset, that's going to be more volatile. >> look at what we had with the notable lockups. whether it be twitter, facebook, stocks have been volatile on the back of any sizable lockup.

>> good points. to me, think back to facebook. i know it was a long time ago, in the stripring of 2012. white hot heading into the deal. and all of a sudden, it wasn't. and investors have awarded ali baba the largest market cap in the world. >> coming up next, general electric, one of the most widely-held stocks. but it's missing this year's rally. we'll try to explain why when we return. 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.

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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.

what's wrong with ge? with the market up, one of the biggest names is actually down 6%. that's bad news for dan nathan. >> "options action," titans of industry, and risk less to make more. and that's what dan tried to do with his bullish bet on ge. thought it was headed higher. but buying 100 shares would set him back almost $300,000. and the july 28th call for 16 cents, he can buy at that price. -- more than the cost of the trade, or by $28.16 by july

expiration. anything below that, and dan will see losses. and it gets even better. if ge shares rise, the call will increase in value faster than the stock. meaning more money in dan's pocket. but since the time of the trade, it's dropped more than 2%. making this trade a loser. now options fans wondering what to do with the ge trade now? well, if you had bought 100 shares on june 6th, you would lose $75. what do you do now, and why do you think that ge is not participating in this rally? >> well, the prior high was $28.

if you go out of the money, and don't spend a whole heck of a lot, you're making a speculative bet. right now, those calls that i spend 16 cents for, or 5 cents, i don't know why it stopped participating. >> first of all, this wasn't one of the growth industrials. despite the fact that they paired -- let talk revenues. $180 billion pre-crisis. been stagnant since. earnings stagnant. it was a cheap bet, though. >> i laid it out, their future

earnings are -- worth a nickel. i don't think you're selling. i'm sticking with them. maybe it gets back above $27 and you have a shot at breaking even >> coming up next, the final shot. time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade.

[b♪ll rings] time and sales data.

split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. welcome back to "options action." some breaking news with regard to american apparel. dovcharney looking to acquire an additional stake in the company he founded. if this were to happen, it would give him over a third of all outstanding shares. back to you.

>> always an interesting one to fool. thanks. let's go to one of your tweets. looking at selling the july 125 puts on zillow. >> well, you have a couple of things working in your favor. the stock is moving at a 45-degree angle. you can sell them for about two bucks. that's nice. but this was trading at $120 or a little bit lower earlier this month. this is a stock that can move. you may want to consider not selling. >> and we noticed this, it was fantistic. >> final call. >> well, i think you want to

finance puts in july. >> and what we were just talking about here, there are still some opportunities where options are high. meantime, "mad money" starts right now. \s . 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." well come to cramerica. other people want to make friends. i'm trying to make you money, my job is to not only to entertain, but educate you. tonight i want to talk about the big picture, building wealth in general, not that i don't mind individual stocks, because