martin, we really appreciate your being here. >> thank you. >> and thanks for the car. >> and for bringing the car by. >> you're leaving it, right? >> you're welcome. >> and this guy over here says in 20 years, he's going to be able to buy one, so -- >> that's the dream. you've got to keep dreaming! >> thanks, everybody. now it's time for "fast money." melissa lee, over to you and the gang. >> thanks a lot, kelly. have a great weekend. "fast money" starts right now. live from the nasdaq market site in new york city's times square, i'm melissa lee. traders are tim seymour, brian kelly, steve grasso and dan nathan. tonight's top story, global volatility. stocks extending yesterday's sell-off on the heels of a slightly weaker than expected jobs report. the dow's lost almost 500 points over the last four trading sessions. the s&p down nearly 3% for the week, the worst in more than two years. in europe, major declines across the board on renewed concerns over russia and portugal. germany's dax breaking below its 200-day moving average for the fir time in two years. even asia under pressure today despite strong china manufacturing data overnight. what is going on right now, ambassad

ambassador? >> i don't think things here are as bad as across the eu. pmis in europe were weaker, but china was great. u.s. numbers this week, which is causing the tension, and i don't think there's enough here to get so blown out of the water, but i get what's going on. on a relative value basis, people have been looking at the entire landscape saying with need to take something off the table. i'm surprised markets traded down as much as they did yesterday and surprised they didn't come up off the payroll today, but china was very resilient. emerging markets remain resilient. two days in a row they have out-performed developed markets when most people would think if the fed's raising rates, these carry traitst trades will be most at risk. i don't think they are. >> i think that's exactly what's going on in the market is people are readjusting their expectation of what's happening with the fed. i think the most accurate thing you can say about today's jobs number is the fed is in no rush for the exit at all. so, people, even just a week ago were saying, listen, we're going to get an interest rate increase a lot faster than the market's anticipating. now we're just readjusting to that. you saw that on the bond market

today. and if that's the case, it's actually pretty good for emerging markets, because emerging markets get hurt when the fed raises rates. >> just to get your bearings here on the s&p. this is the first time -- yesterday was the first time it actually felt like there was some urgency for the sellers to come in and lighten up on positions. but we broke the 50-day yesterday, 1,953. 1,910 the 100-day. to ease credit, he said 1,950 was an important spot? we stopped on a dime, 1,960. >> but it was a nice consolidation after maybe the biggest down day of the year, or at last since january. as far as the jobs number, you just said adequately, the fed is in no rush. >> adequately, thanks. >> well, adequately. they're not in any rush to raise rates, but they are in a rush to end qe, and that to me is really -- you know, and we've been talking about this for a year now. at that point, when qe ends, that was that put, right? now, they can talk about rates and they can talk about keeping them down, but at some point,

volatility was really kind of kept down in the dumps, and now we're starting to see that pick up. we just had that fed meeting on wednesday. we know qe's going to be done in october. and i'm just going to say, if the unemployment number at 209,000 or whatever goes below 200,000, all of a sudden do people start to panic? do they start saying do they ratchet up the qe again? >> i understand, the put of qe is still there. it doesn't matter, the fed -- [ everyone talking at once ] ultimately, they will step in, if need be. >> think about it this way. if they go in october and there's no more bond buying, and then at some point in the next six months they go back up and start buying bonds, you don't think that that is a huge vol event in the market? >> it will be massive. >> i think that's a tough thing to envision for me at this point. i don't think they're going to be raising rates. if you look at fed funds, after the last couple days, fed funds are unchanged for december, 2015 and '16. as a vol guy, i would think you would be selling vol this afternoon after what we had. to me, i sold had some ibm puts,

which did a very good job. the russell totally underperformed the rest of the indices, but i don't think this is a panic time. maybe as steve's saying, there's a couple more points to go on the index, but at the end of the day, i think you should have been fading vol on a trader's perspective at the end of today. >> but to go with it, i think there's always that put, i think is a big mistake, because that sends such a signal that they have no idea. and the point of diminishing returns? you want to talk about that's the least of which i'm worried about. i'm worried about people actually saying they have no clue whatsoever. you can't rewind this again. >> to button this up, trade update, you are short the dax -- >> covered it today. >> why today? >> it's down 7% or 8% within a couple weeks, so i just had to take the profit. doesn't mean i don't think europe still doesn't have problems and i'll look to reshort this, and also the euro stocks i would like to reshort. >> i've been short the dax a long time. it's em-focused but absolutely russia-based. >> morgan brennan has the latest on berkshire hathaway. >> thanks, melissa. we're just getting quarterly

earnings from berkshire hathaway and operating earnings per class-a equivalent share, $2,634 per share, ex-items. that beat expectations of $2,482 per share. but keep in mind, only three analysts actually offer estimates for berkshire$2,634 p. and revenue, $49.76 billion. and the book share increased as well. >> thank you so much. >> and after briefly spiking yesterday -- here's guy. >> thanks for having me.

>> what has changed on the ten-year data to today? >> well, perhaps the world was concerned about it a couple of days ago, but it doesn't change the long term picture. the reason, at least, the main theme within the markets, a little bit of wage inflation today may mean goods inflation down the road. but it's at least an 18 to 24-month period before that happens. >> and i'm curious about your thoughts on high-yield junk? >> well, they've really underperformed since the middle of the year. given up all their outsized

gains. and there's a divergence between -- there's not a lot of liquidity in the street to absorb that. we'll see some more fundamental investors jump in. >> and you seem relatively indifferent to the move, or unimpressed to the market moving data points. are we watching the wrong end of the curve? are the fixed-income guys saying we're going through a major change? >> i don't think we're there. the first six months of the year was about the fed ratcheting

down their expectations for interest rates. and the regime change we're seeing made a greater focus on inflation. what i'm focused on is inflation break-even yields as a predictor a couple years out. >> thank you for your time, guy. and let's get our traders' picks around the market. >> well, citibank, that is how you play it. better for citibank in terms of

inflati inflation. stay in citi. i think there's a lot of potential for growth there. >> i think you stay with ewz. you have a bit of a cushion. an election coming up. could see a regime change. and you get a .25% yield. >> apple seems to be a safe play. the iphone 6 coming up, and the non-death of the macbook. >> i'm going to disagree with that. >> what do you disagree with? >> i'm actually, it was my final call last night. i'm short qqq, long qqq puts.

i'm talking about the trade on the qqq, down 10%. i just want to make one point, when you have people telling you apple is a protection trade -- >> what's yours? >> i just said it. were you listening? >> i don't really get that. ultimately, if you think the market is falling aapart, high multiple stocks -- >> i wasn't listening. >> clearly. well, one stock is a safety trade, el pollo loco. it was flagged as a potential red flag, and the day before it

went to ipo, the s&p had closing highs. so, would you rather -- >> we love this game. >> would you rather, el pollo loco, you can vote as many times as you want. >> those are tough choices. >> i wouldn't know what to do with that. >> you said are there none of the above as an option? driverless car ipos, moving more than 50% in its first day. find out what the ceo has to say about the companies long term plans. that's next.

ah, got it. these wifi hotspots we get with our xfinity internet service are all over the place. hey you can stop looking. i found one. see? what do you think a wifi hotspot smells like? i'm thinking roast beef. want to get lunch? get the fastest wifi hotspots and more coverage on the go than any other provider. xfinity, the future of awesome. so, we told you to keep the votes coming. give us your -- looks like el pollo loco has taken the trophy about your best safety play.

>> that's ludicrous. crazy. >> shares of mobile eye, soaring. the software company makes camera software that helps drivers avoid collisions, and also can be used in driverless cars. and the ceo telling us he doesn't care about the stock price. >> people don't buy a go pro for the thing, but for what it does. when people are creating and managing that much content on our platform, it becomes go pro channel programming. now on youtube, xbox, et cetera.

>> at some point, he's going care about the stock price. >> but if it's going to be a content company, then maybe it's a tuck-in for google, for youtube. i think you just use the iphone eventually. i wouldn't buy the stock, it's not a hardware company. >> i don't think it's a media company, either. >> i wouldn't buy it. >> you want to talk about take-out, ask john chambers about what it was like to buy flip. >> there was no vision for flip to be a media platform. >> it doesn't make sense.

you take your iphone, upload your videos to youtube. >> and most people don't duct tape their iphone to their head and jump off a cliff. but they have to create the content faster than anybody else. we're in the period of doubt for them, i wouldn't touch it until it gets to $32. >> well, there will be followers. but there's no way this valuation stands up. >> and jewel auto sales, getting boosted by incentives. >> i think ford is doing a great

job. they're not discounting the f-150. i love chrysler. they grew 20% in the numbers. a lot of people think the auto numbers is somewhat stacked up in terms of inventories. i don't. >> i always choose ford over g.m. you're running into a wall here. >> what's the wall? >> i think you're outsized. all the good news is factored into ford. people are moving away from a o aut autos, from the stock. they're buying autos, but they're not buying the stock. >> i'm not going to listen to

anybody. i'm going to break. and some big-name earnings are coming up. which ones will our traders pick? that's next on "fast money."

time for pops and drops. big moves of the day. expedia up 6%. >> well, they seem to be doing everything right. but i want to let it settle in, look next week and see if it's still at these levels next week. >> and p and g. >> they're going to cut costs,

investors like that. this is one you could probably play against its $80 level. probably okay here. >> and linkedin. >> big pop. this, to me, truly almost a monopoly brand. linkedin has it. they're growing internationally. i think you can stay in the game. >> and control4. >> they came in with earnings last night, right in line. come weakness in canada. at $15.50, i'm in. >> and a pop for loving your job. -- launching a new career matching site in december.

aiming to have the perfect match between employers and prospective workers. >> is that like dating your boss? >> you've been through this. how did it go for you? >> good for getting a raise. and which one of the new earnings reports are you excited for? >> well, disanedisney, they holo this. they've been fulfilling and holding on to this the last four quarters. >> i find it interesting, kors, because of the selloff, we'll see if it's a onetime issue or

if they can turn things around. >> and i've been watching activision. i don't look like a gamer, do i? >> not that kind of gamer. >> i'm watching activision. i'm also watching electronic arts. >> michael likes activision. >> i'm watching it to see how it performs. >> dan? >> well, first solar. if you believe the forward guidance, it's probably pretty cheap. right around $62 today. the options market implying about a 9% move. i'm keeping an eye on this one.

>> so, does this mean you're in it, or not in it? or just tradeable? >> i'm keeping it in mind. we don't trade on friday before the reports come out next week. >> time for the final trade. let's go around the horn. >> precision cast parts. titanium, not flowing as rapidly in russia. look at the name, been sold off. i like it. >> pcp, always reminds me of an afterschool special. and bk, i would sell.

>> and mobile eye. i'm the most excited on the desk about self-drive cars. you can game in a self-drive car. if you want to be in this space, you don't have to worry about google. you can be in a long stock here. >> and stay tuned, "options action" after the bell. >> that does it for us. see you back here monday at 5:00 p.m. next up, "options action." stay tuned.

♪ >> this is "options action." tonight -- that pretty much sums up the market this week. but you won't believe the shocking reason it could get worse. and auto shares of ford and g.m. are plunging, and they could get even rougher according to one record. and on a painful week, why aren't so-call safety stocks

providing any safety? we'll tell you where you can hide. the action starts now. markets in disarray. fear coming back in a big way, is this a welcome break from the complacency, or the start of a serious correction? >> dan, why does it feel worse? >> i'm the resident skeptic. people that watch this show regularly, we've been talking about the weakness in consumers and home building, and industrials. looking at the indexes, they're holding up. it's concentration among some very big components of the indexes.

that's the reason to be skeptical, when you look under the hood, there is some weakness there. so much performance, that means they're crowded. and you start getting the cascading selling. >> 85% of stocks are lower than last week. basically, what really is going on, we're talking about some of the larger stocks have been supporting the market to a degree. and the other thing is, looking at what happened to us yesterday and today, it's clear the market is going take a nosedive as soon as it anticipates what the fed is going to do, not when they articulate it. they were expecting a better jobs report. if we had a one-tenth downtick,

we could have seen worse. >> and talking about since last may, last june, it's down, what, 7% from the highs then. we're going to see more volatility. >> and when volume spikes, it spikes exceptionally. >> i want to go carter. a week ago, we were close to record highs in the s&p 500, and now we've got our knickers in a bunch. are we overreacting? >> well, it's the year where nothing is happening.

germany, unchanged to down. u.k., unchanged to down. here's the real issue. this is the russell 3000. 98% of all investable capital. breadth has been declining. that's a problem. and right here, 52-week highs, we're at almost a low for the past 12 months. and the reciprocal number of 52-week lows, we're at a high for the past year. it should be the beginning, not the end, of the selloff. >> and we were saying there was one resident bear, but it seems like most of you are skeptical. dan, let's get to your trade. >> well, the nasdaq qqq, 98% of

the entire nasdaq 100 were at the highs, and the index were at highs. the top companies are holding it up. it feels like the entire nasdaq is on the shoulders of the iphone 6 launch. i'm looking at the cues, and looking to october. when the stock was $94.75, paid $2.40 for the put spread. sold one of the 85 puts at 60 cents. 2.3% of the underlying stock price. this is in the money, this spread. and over history, september, october, kind of rocky months.

a lot of anticipation for the iphone 6, maybe a great way to play it. >> usually, you don't want to go way, way out with spreads. but the payout ratio is nice. >> and it sounds like you're really bearish, apple. so, why not just do apple? >> well, apple has been the kind of stock that you don't want to pick a top. it could go 100, could go 105. i think there's too much good news in microsoft and intel. google, facebook, we know the issues there. if we get a large cap selloff, the qqq is going back down.

>> and it's a question of how long you are, and when you want to be a little bit less long. >> good point. and talking about autos, after strong sales numbers, today they were one of the worst performing industries. the light numbers come despite a big rise in discounts. in july, the most in four years. both ford and g.m. dropped nearly 1% today. and we saw some bearish activity in the options market. so, are all the put buyers right? will there be more pain for ford ask and g.m.? >> i think the people going after the short side are right. let's look. here's a composite of about 20

oil and another 20 housing-related stocks. and the recent breakdown, these are highly cyclical assets. starting to diverge from the market, and the market will foul them. this is a quality name, and it just broke trend. and daimler, renault, it just broke trend. harley-davidson, just broke trend. general motors, it broke trend months ago. one of the biggest laggards around. and basically, the pattern sets up like this. you can draw your tops many ways. this is a well-defined way. this is not cool. this is a neckline. >> that's a first.

carter saying it's not cool. he must mean business. >> well, they've had a strong secular tail wind. american cars, they've been trending straight from the lower left to the upper right. that's strong. and a much better product mix. sub has outsold cars for the first time in years with the most recent sales reports. and the chinese market, slated to grow. so, this makes it seem very cheap. but the problem is, we're close to $100 crude. that could affect auto sales. the fears we saw this week, the fear that rates could rise. that is also cause for concern. and the fact that the stock

looks cheap based on forward estimates, those could be wrong. and you can buy it for about 75 cents, $1.25. i don't want to go out too far, 50 days until expiration. go to december, it will pay off. >> and the percentage of older vehicles on the road is the highest in many years. >> well, gas price is the magic number. not just croude prices. if gas gets above $4.00, people will turn away from suvs.

and the numbers may actually be softer because of production issues. >> and i like targeting $30 to the downside. carter's chart, it's a triangle of death. a failed breakout there. the momentum has left the building in this space. i don't think this is the right spot. >> if you have a question, send us a tweet. and we have white-hot options news online. we call it optionsaction.cnbc.com. >> the safety dance, that's what

traders are trying to do. and we'll explain why tradould actually be flashing a buy sign. that's when "options action" returns. 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." live from times square. we told you about the vic surging. could this time be different? i came all the way over here to the smart board. >> well, this is the start of the vics over the last year.

this recent one, moves of 50% of greater off 52-week lows. the fed has been buying a lot of bonds. but they're going to be done soon. so, the traders thinking about more volatility. now, 70%. closed at 17, well below the long term average. and you can see the inverse reaction here. look at what's going on. a few months later, up about 10%. and the s&p was about 30% last year. you're seeing this convergence, we're seeing a spike, the s&p come in a little bit. and this, over the last six years, including the financial

crisis. we haven't seen levels like that. every level, trailing the fed buying bonds. what does this tell you about what to do with the s&p? this is the trend line, a series of higher highs and lower lows. grinding higher. this line, if you're asking me, what does this 70% spike mean? if you're looking -- if you think, take it to the bank when it spikes like this, wait until the trend line, about 1,860 on the s&p 500. >> do you agree? would you wait, mike? >> yes.

and when it spikes, there's a lot of uncertainty. and we get a little bit of a pause button. everybody trying to figure out, get ahead of the fed's next move. we're not going to get that until we get additional data. but i'm not expecting the market to get more volatile from here. >> carter, what do you think about the 1,860 trend line? >> well, we're more in the 1,760, not 1,860 camp. >> they've been great sales of vol, and great opportunities.

if you're one of these buying the dippers, wait until it gets back to the trend line. i wouldn't try to do it beforehand. coming up next, we'll tell you what went wrong with the safety trade, when "options action" returns. 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.

when the world moves, with the mobile trader app.

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. don't look for safety here, the market's worst week in two years. bad news for mike and carter. on "options action," it's the only way to make a winning call. risk less to make more. and that's what they tried to do with their bullish trade on verizon. >> i think you make it back to the high, $60. >> so, he made the trade.

and just buy the stock? don't just phone it in. that could cost you $100,000. to spend less, mike bought the january 50-strike call for $2.10. so, he needs them to rise above $52.10 by january expiration. and mike is spending less, so he can make more. if verizon shares rise, the call will rise faster than the stock. meaning more money in mike's pocket. and every "options action" fan has the same exact question. what will he do with his call now? >> here's what's frustrating

about the trade. it was working out, but past is p prologue. why didn't the safety stocks work, carter? >> well, it's about why the yield play, the so-called bond proxy didn't work. nothing has changed on a pattern basis. a lot of time to trade, but we like it here. stay the course, no problems. >> what are you going to do? >> definitely stick with it. and the price of the option rose a little bit, despite the fact that the stock is below $50. it's only down about 20 cents. and this is an inflati inflation-adjusted proxy. if we're concerned about rising yields, we have a lot of time

for it to play out. i'd stay with it. it's a nice bet. >> and what happened the past week? >> well, to me, for a company as big as verizon and at&t, saw a huge move and gave it all back, it's massive. i think the thesis is intact. it broke out on the $52 level, the 52-week high. i think you get back in here. >> it's big tech. you get yield, from intel and microsoft. they're basically utilities. >> and it's the exact opposite of what dan is saying.

>> well, this has been going on for a long time. you're getting this 3%, 4% dividend yield. but no growth, and people are going to figure that out. >> when every bubble breaks, people are doing to throw away the most overblown stocks first. the safety stocks won't decline as much. coming up next, the final call from the options pits. [bell 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.

[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. i want to get to a tweet, because this subject has come up a lot.

james asks us, ideas on micron? >> i'm not inclined to buy them, not chasing it here. >> well, david is long on this one. thinking the street is not where it should be on the forward numbers. they've had a massive bounce back to profitability after losses. and revenue growth has been massive. right now, the street is at a consensus, growth of 8%. you probably don't want to own it after a triple. >> i'd look for $27.

>> carter, the final call? >> well, forget about general motors. >> i like 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. other people want to make you friend, i want to make you money. my job is not just to educate you, but to entertain you. so call me at 800-743-cnbc. every time you think you've seen it all. every time that we thought there can't be anymore scandals as best as the