this is "options action." tonight -- we're not l.l., but there's one sector options traders see as the best place to play catchup in the market. plus, facelift. not that kind, joan. facebook. and how high do some traders see apple going? >> $10 million. >> not quite that high, but the

answer could shock you. the action starts right now. >> live from the nasdaq market site, all the traders are here. stocks rebounding from yesterday's selloff, but there is one name america is watching tonight, and that's google. now commands a market cap just shy of $400 million. this could have implications or facebook, reporting next week. why? >> well, we know the story. it's been the upstart. up 150% in a year. they've been taking share against google in mobile advertising. it's a great secular story right now. google with a $400 billion

market cap, facebook has $150 billion. people are looking at this market share gain continuing. >> and twitter is not doing very well. down about 8% from the beginning of the month. so, you could benefit from this sort of decline in twitter stock. >> i think that's true. probably what's most true is that google has improved itself over time. we're still looking at consistent year on year double digit eps growth. and talking about monetizing mobile. but really, we're still in a

relatively young industry. and you should just be looking for consistent revenue and earnings growth. that demonstrates that they understand the business they're in and managing it well. >> carter, what do you see? >> well, the s&p peaked here in early march. and we know -- excuse me, bottoms in june. and google was able to make a run for its past top. and the presumption is that facebook is going to follow suit. >> kyle? >> you look at the chart, it's a good-looking up. google rallied today.

facebook worked its way up very simil similarly. and you would much rather bet that the momentum is going to continue. facebook up 150% in the last year. you would rather play for a new high than a retracement back to the line in this environment. >> and we have to look for a significant turn in trend to get exceptionally bearish in this and a lot of names. and we're looking for a turning point. and i don't think it's here now. >> i wouldn't buy facebook shares here. but as a trader and someone that likes to look at options, it was in the money called butterfly.

you could have bought the august 65, 72.5, 80 call butterfly. i breaks even at 67.25. max gain -- that's the prior high for march. a one-day move of about 8%. i have this wide profitability range, a 15% between now and august expiration. and my max risk, 225. >> this is a thoughtful trade. options prices are quite low, but this is ally a stock where

options prices aren't as low as others. decay is working in your favor if the stock just stays here. that's because of the earnings announcement. >> and let's move on. in a week where -- telecom, the best-performing sector of the week. and it wasn't just the stocks, options were bullish, too. at&t, nearly 2 1/2 calls for every put. and the chart master says this could be a great catchup trade. carter, what are you seeing? >> well, let's take a look. some beautiful graphics.

utilitie utilities, the sector, reits. and look at the charts. a comparative chart, a lot of lag from tellco and the potential catchup trade there. and the longer picture, telco lagging. and what i see is the following. a well-defined level. 160. 160. 160. and the presumption is that it's setting up for a textbook breakout. you can draw the lines another way. the head and shoulders bottom, anything you want. the neckline. but there's a lot of tension

here. and a lot of breakout potential. and this one, the correlation has broken down, speaking to the catchup trade. and two more. the stock itself. verizon. a well-defined trend. a lot of tension as you work into the wedge. and guess what's happening now. we've broken out of the wedge. a very bullish setup. and the long term trade. a fairly important double bottom. the all-time high at 60 from the 1999 era. i think you make it back to the high, 60. >> is there going to be a breakout, mike? >> well, at least from the equity investor's view point,

looking at probably 4% topline growth. but these things are trading a couple of turns stronger than the market. and a name like verizon, all of the revenue coming from the united states. and some fallout from the high-yield market. this is the place to get it. and it's all domestic. so, you can buy it at about 13.9 times next month's earnings. get a cheaper yield off of it. the options are exceptionally cheap. so, i'm looking out to the january 15th calls. $2.10. 75 cents in the money already. so, the stock only has to get to

$52.10 to make a profit. >> we're back at 15-year highs in a lot of tech names. telecom really participated in the tech bubble a couple years ago. 60, that's a really interesting target. if this thing goes parabolic, the nasdaq and the market, it's likely to participate. and looking at a stock like veriz verizon, i'd love to own it. calls do not look attractive to add yield to a long stock position. which almost speaks to, you buy the calls and stick with it. >> exposure to early 2015.

you're not risking a lot, and a potential for a lot of upside. >> send us a tweet if you have a question. or check out our website. the hottest news and videos throughout the week. it's like "people" magazine for people that like options. >> some traders are heading into apple earnings next week. and if you thought microsoft's news was impressive, why are some traders making hugely bearish moves ahead of earnings? 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.

[ 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.

4%. that's how much traders expect apple shares to move next week. here's how they made money. >> on "options action," it's how we trade apple like geniuses. risk less to make more. and that's what they did with their bullish bet on apple. carter said shares are looking fine. >> a perfectly symmetrical move back to the high. >> mike said, let's make this happen. we agree, but there's one small problem. 100 shares would cost $9,000.

be but mike bought the october call for $4.50. so, he needs the price to rise above $96.64 by october expiration. it gets better. as the stock rises, that call will gain value faster than apple shares. meaning more money in mike's pocket. and since the time of the trade, apple shares are up. making this trade a quick winner. that leaves "options action"'s biggest fan with just one more question. what will these two apple fanatics do now? >> who knew tim cook was such a fan? but who isn't? a return of almost 18%. now, we have a big earnings for apple next week.

mike, how are you planning to make even more cash? >> this is an interesting situation. we weren't hoping to make 18%. we were hoping to make considerably more than that. and the good news, because we bought the october options, we're not dealing with the accelerated decay. if it was a little bit higher, it may make sense to roll to an out of the money strike. but i think we're a couple of dollars away. i'm going to stay in. >> carter? >> well, there's nothing wrong with the chart. and the principles are the same as google or facebook. we're approaching the top. and that top, september 21st a year ago. and we're at about $94.

so, we think, at minimum, we'll get to the top. so, we'll stay. >> i agree. and what bugs me as a trader, i hate that people think it's got to get back to the prior high. we talk about the name almost every day. going back to $7.02, the high back in september 2012. everybody talking about iphone 6. well, going back to iphone 5, the absolute high was when it came out. september, that's when iphone 6 is coming out. i think the calls, they're playing it beautifully. when they sell off, i think the stock gets bought, but i think that's dangerous. remember the sigh kol ji. >> well, you're actually buying

higher eps on a first-year basis now. even if you own the stock up to its previous high, it's cheaper than before. >> and we just saw google today, the environment where you bet against apple, but it won't? >> no. >> and you can have a magnet to 100-plus, and also see the stock sell off on iphone 6. >> well, we remember the mania before. >> i don't feel like the mania is the same. not as many hate tweets when we say anything slightly negative about apple. >> well, the iphone 6, it's

actually a nice time to be in an outright options position. >> and if the stock does go higher, can it hold it? >> well, it's approaching the high. when you get to a past top, you contend with memory. people from that top, saying i'm back to where i was. i'm out of this thing. so, you contend with the supply. >> and get to the september launch, very, very quickly, after labor day, they're out. so, the higher the stock goes, people could think that the iphone 6 isn't what they thought it was. why did some savvy traders bet against microsoft?

we'll explain when we come back. when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. 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.

with the incredible runs of intel and microsoft, you may think we're in a 1999 time warp. but despite this move, some traders think the run might be over. mike? >> well, today, one thing that was interesting, the stock was up in sympathy with intel. but microsoft, the options ran high. and there was a trade in the morning, what looked like a buyer of 12,000 of the august calls. a bullish trade.

but they got sold all day, 23,000 of them. and closed up about 14%. so, a lot of activity, it's hard to tell. but if you think about it, it could just be one holder and the stock may not go a lot higher. this massive breakout to the 15-year highs, then came back down. and i remember this. this was total mania town. the stock just broke out. i would expect it to consolid e consolidate, with the new management. and this is intel in the same period. this amazing, long base here. in some ways, earlier in the week, looking at the guidance, i was less optimistic. but these nice deals and

valuations and balance sheets, that's almost something you want to buy on a breakout. i'd probably be favoring intel here. >> i love when he goes up to the smartboard and walks through charts while carter is here. and watch his reactions. >> he's quite facile with these things. in '99, it was a steep, unrelenting ascent. but now, these are not analogues here. >> and are they going to make an

announcement, 18,000 layoffs. it just doesn't smell good. this is not a growth stock. i'm not crazy about their products. it's hard for me to get enthusiastic. >> good work, dan. coming up next, final call from the options pits. ♪ 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.

[ 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. time for the final call. the last word from the options pits. >> we have earnings from verizon and at&t next week, be there. >> and facebook, i think that's a good way to avoid risk. >> and facebook, here we are in earning season.

makes the calls. >> for more "options action," check out our website and our daily segment inside "fast money." for more, 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. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate you and teach you. call me at 1-800-743-cnbc. or of course, tweet me @jimcramer. talk about uncertainty. with all the tensions in russia and ukraine and israel and the