clearly about a world where the dollar is going to be a lot more volatile than it might have been in the past. >> the strong dollar cap. be care whafl they ask for. >> and i'll give one last plug. >> my ceo rich handler. an amazing investment bank. >> you're not allowed to do that. "fast money" is coming up now with melissa lee. melissa, what son tap? >> welcome back, kelly. >> thank you. >> first of all. we're trading the g tap fallout. straight ahead. >> over to you guys. >> thanks, kel. "fast money" starts right now. live from new york city's times square, the traders a pete najarian, dan nathan, karen finerman and guy adami. coming up, the latest on the ebola outbreak chimerix rallying. we start off with our top story tonight. our split is a red flag for investors. hewlett-packard announcing today it will split into two companies, an enterprise business and pc and printer busy after ebay announced last week it was splitting from paypal

unit. investors initially cheered the moves or is this just another form of engineering? i'm going to you mr. grumpy pants. >> i actually think in this company in hewlett in particular, it's done from a position of weakness. i don't think it's a position of strength. and i think they have a situation where they've been perpetually restructuring. this is a company that bought $27 billion of their own stock back between 2009 and 2011 at much higher level there's. they destroyed a ton of value. they caught ton of costs. but i think mrs. whitman is done -- she has done as much as she can do right now. and if the sum of the parts, if the investors are saying this and analyst, then she has to do something now. i don't think there is much left for her to wring out. >> you like hewlett-packard for a long time. still like it? >> i think meg whitman had a plan. she has been executing her plan to perfection. she has been on board with some of tvx stock.

when you look at what she has done, she talked about how the plan has been executed. she has done that except for this last element that we're talk about right now which is the split. and i think she is just looking at the environment right now. see house this company can be much more effective if they were split. and because of that, i think she is making the right decision. she doesn't have an activist in there shaking and saying you've got to do this. she is doing it for the right reasons. she is inside. she has watched this company grow. she has helped it grow. and i think the stock is going to go to $40. >> what do you think, karen? >> in general i guess on the split thing, i'm sort of reluctantly inclined to agree with dan. because when things -- >> it's a compromise, right? >> when things are going great, then you have these conglomer e conglomerates that trade really well and they don't see the need to do that. it makes me think more often than not when things aren't going quite as well. it can happen in any market. especially now with shareholder activism, kit happen to anybody at any time. who has two very disparate businesses. >> at 9.5 times forward

earnings, regardless what you this about their growth, it is relatively cheap. but three years ago, october 2011, she said together we are stronger. >> yes. >> so clearly, a lot has changed. >> and she acknowledges that on the conference call. >> she acknowledges that on the conference call. i look at ebay and see how that has traded since their announcement you. had if initial run-up and then the stock is back where it started from 53 and change. i think the same thing could happen to hewlett-packard. it had this nice run-up, 5%. i think it could absolutely do a back infill before it gets to the levels that pete thinks it's going to, which i happen to agree but down before higher. >> in meg whitman's company, the hp enterprise company, that's the one that is going to be potentially opening itself up. >> and we talk about growth areas. you said you don't think there are growth areas. i would say the hybrid cloud. we looked at microsoft, everybody said where are they going to be going? we know where they're going right now. where are they make their best profits in it's in the cloud. i see all kinds of catalyst in

front of them right now why this stock could be a $40 stock. >> there is so many legacy business here, and they're not obviously humming to the point. how have they gotten any earnings growth? they have sucked out costs here there is no demand for a lot of their legacy businesses. so they want to spin one out. i would also mention the pc business, it sounds like it has been for sale for a while there is no buyer. you're splitting up a very levered company with very challenged growth. and i just don't see jumping in here. and i think guy makes a great point. ebay has filled in that entire gap since last week. >> that's a good point. i want to go back you had mentioned emc options activity and that you were in that trade. what was going on there with what has happened at hp. >> sure. >> do you think it paves the way, the split for some sort of deal with emc? >> maybe emc decides they're going to split. we talked about that for a number of years now, actually. when would they ever want to do something like that? not saying it's going to happen any time soon. certainly had monster option activity to tell us there is something bullish about the way

emc is trading right now. an earnings alert on the container store. dom? >> here is what we've got. we want to watch shares of the contain story right now. down by about 10% on 135,000 shares worth of trading volume. now the interesting part about this story overall for container store is that earnings came in line 11 cents per share. but their revenues were a slight miss. $193 million versus $199 million estimates. they also had weak full-year guidance. and they see that their third quarter comparable store sales will be flat to down single digit. so again, that's third quarter comparable store sales. also interesting that ceo kip tindol mentioned in his release that they expect typically 60% of their net income for a full year happens in just the fourth quarter. melissa, guys, this time around, he says it's going to be closer to 70% of full year net profits or income that are going to happen in the fourth quarter. so they're expecting a lot more business this time around. we'll see if it actually

happens, melissa. back over to you. >> all right, thanks, dom for that. karen finerman, what's the read-through? >> it's not a horrific quarter. it's when you have something priced to perfection like they were, it's a huge growth story, and then when they miss a little, you get a contraction in the earnings and a contraction in the multiple and a double whammy on the stock. >> it's 32 forward earns. the stock is not trading well, now. you're going to get a flush i think over the next couple days that will provide you with a pretty tradeable bottom. probably not tomorrow. but on wednesday a monster volume day tomorrow. wednesday might be a day to play long stock. >> this company since they went public, they basically missed on every quarter. they've had big down days the next day. it's going to be trading at its ipo price of $18 some time very soon. to me this is a by-product of the environment that we've been in where there has ban lot of cheap money or opportunities. this company should have never been public obviously. let's move on here. after spin-off announcements

between ebay? dan, good to see you. good to talk to you. let's start off with symantec. >> it has been a headache for the last decade. activism there's. storage business has really been the overhang here. we can see them getting rid of that, potentially sounding off to private equity. and that's really what investors want to see here, that they can focus on the cybersecurity opportunity. and again, you've had four ceos in five years. you know, there definitely needs to be something done here in the storage business in terms of selling that is the recipe that they need to take. >> who would be a buyer of the storage business? >> it would have to be private equity. just given the mature growth prospects there. that's more, you know, i think in line for private equity to buy that storage piece. you have seen some success lately, and that's really sort of front and center for a private equity player. >> you also think citrix is another candidate in that it's a

cloud business they could spin off? >> that net scaler business, that's really what we view as nonstrategic. that competes at five, could potentially buy. you could see ibm look at that as they focus more on the virtualization piece. you also have some activism there. you've had some potential management changes. and i think citrix is sort of front and center as one piece on the virtualization. that's their core competency. the other piece has been a little more of a distraction. invest worries like to see that potentially go away, and that could add we think 4 to $5 of value. >> emc obviously elliott has been in there. they want them to spin off and separate the business as well. now that hp has done it, how does that change the landscape if at all? does hp then become a player within this whole sort of triangle? >> yeah. i view that there is a lot more heat in the kitchen of the emc board and joe tucci himself. i mean, it is just clear that it is not adding shareholder value to emc.

i view it that this is going to be the third leg of the stool for emc. potentially their spin out of the m wear or sell a piece of it. ultimately there is two paths they can take. you look at hp-emc potential acquisition. but emc, they have to look at the golden jewel. and i would view that if they spun out as a number one acquisition candidate in all of the enterprise, tech, where cisco and ibm, oracle could look at that. but today after ebay last week, hp today, joe tucci is listening. i think the board is starting to remove the rose colored glasses. >> last quick question. we're out of time, dan. are you telling your clients to buy sim manhattan tec symantec or citrix because they could be splitting? >> semymantec continues to be a long road. i think any strategic investors have to look at symantec,

citrix. >> thank you. dan ives. you've been recommending semantic for a long time. >> symantec has not been able to get out of its own way. they finally named a permanent ceo. i think the business is pretty interesting. the stock has not done much for you. you talked about activist investors. i think that's going to continue to be a theme here. i think this stock goes higher. panw still works here as well i think. >> what do you think of these as potential split candidates? >> i think it's very interesting, symantec being one of them. but the vmware, that makes a lot of sense. i look at a that as a potential where it really does unlock something for emc, puts them in a different than where they are right now. suddenly you you've have a lot of folks knocking on the door, very interested in vmw. >> we want to ask our traders who is next to follow. so dan ives had his picks. let's go around the horn here. karen, what do you think? >> well, one that we own and one that i think is really ripe for

it is manitowoc. this is the manager of a crane business and a food service company. clearly it's obvious what the synergies are there to cnn. so you have relational in there. you're saying split these businesses. they shouldn't be together. in fact, manitowoc bought the food service business, it nearly took them down. they did it in '08. the timing was terrible. they did wit a lot of debt. these are two companies that very different profiles. i don't get that they should be together. relational is so good at that i am long. >> this is one that i think is logical. i think it makes sense. i shot it down a couple of weeks ago when you and pete were mentioning it after oracle. >> shocking. >> after they divided their management and they missed and they got in debt. i think it's something that people are going to suggest that it's almost like a three degrees of meg whitman, right? meg whitman was at ebay and they split. and oracle, he is a co-ceo that. >> split. i don't think it should happen. i'll tell you why. i don't think larry ellison wants this to be his legacy, the

company he has basically built by tens of billions of dollars in acquisitions just just to get here to have it split up. >> no longer ceo? >> he is chairman. and i think he made it very clear that he is still at the helm of this sort of thing, we're asking who is the next candidate. you're saying you agree with me and pete. >> no. i'm saying that i disagreed with you a couple of weeks ago. and i still disagree with you guys. i think this is one that is going to be because of the hewlett deal, it makes a lot of sense in that capacity. but i do not think they should do it. >> guy, what do you think? >> that was clear. >> that was crystal. ibm's basically has five business segments. and historically they have all complimented one another. i don't know if you can make the same argument. >> you let him have a pass here? >> are you drinking something on set? >> listening to him first. go on. it's like children here. guy, i'm sorry. >> i think ibm, they should consider it. i think they absolutely should

consider it. it's a stock that has not performed for at least two years, five business segments. you could probably spin out at least two. ibm came to mind for me. >> nelson pelts, i think see right on this one. hinge see wrong in coca-cola because obviously he is going up against the oracle of omaha who says. no dupont and dow are two different names. they have folks talk about how they should break themselves away from agriculture, split that from chemicals and so forth. i think those make a lot of sense. i think nelson peltz has done his work here. he talks 2 to $4 billion in annual savings costs. that makes a lot of sense to me. >> i got to say this. at the end of the last psych until 2007-2008, we saw this rush to lbos. i'm saying there is a little bubble here in the split. when you take these companies, you are splitting up these managements, right, that you thought were better running one company. and all of the sudden now you have a manager and a manager here. this is not something that i think is going to become a trend. i think it's something that we saw in tech because it made sense in paypal. >> saving your annual costs,

that's a different scenario all together. >> they put these companies together to save in cost. >> right. and once they have done that, then they can separate that out. >> carl icahn started this in ebay. this was his trade. i bet he sold a lot. that's one of the reasons why the stock has filled in this gap. >> all right. >> man! >> the break. >> i think if he did sell. >> that's a good point. the bankruptcy that shook the market today, we have the details in the fall of once loved apple supplier gt advanced technologies and how one of our traders was trading the stock. next, plus, a tale of two ebola drugmakers. we'll break down the fact from the fix on these biotech names coming up on "fast." when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead,

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here is a surprise today. gt advanced technologies, a supplier for apple and a number of solar companies tanking after announcing it is filing for chapter 11 bankruptcy. we spoke to the ceo back in march. take a listen. >> this is not just apple, you know. this company has got -- we introduce products that should drive three to $5 billion of incremental market opportunity over the next three to five

years. one of the rumors out there that we can't sell to anybody else or we can't sell equipment to anybody else. that's not true. the technology we have developed for growing sapphire and the an sill layer technology that goes with it, we're able to sell to others. the second half of the year, as you can imagine, we're quite busy right now putting equipment in place. the the second half of the year, we should be in a position to add substantial equipment revenue as well. have i the bulk of my personal wealth tied up in the company. and believe me, i believe in this company. i believe in its future and its continued growth. >> what a turn of events. it was a good trade for much of the year rallying on nearly 100% from the start of the year into apple's announcement of the iphone 6. there was wide speculation that it would make the glass for the new iphones. the stock dill sell off 35% when sapphire glass was not mentioned and dropped another whopping 90% today. but karen made a trade on the stock. and this was surprising because

this is usually not your thing. >> yeah. this is usually not my thing. but when the stock opened and traded below a buck. you know, we bought some at about 82 cents. and you and i were talk:00 it, trying speculate what happened here. this was such a shock. it literally came out of nowhere. a lot of times they talk about looking to the debt because they're much more focused on debt replacement, cash flow, things like that. the debt hit was absolutely blindsided here. and looking at the apple deal, there apparently seemed to not have met some performance metrics. the other thing that is so odd here is we haven't heard one more word from the company. >> right. >> that's amazing. >> this is what they're filing. they're facing a severe liquidity crisis due to circumstances that will be more fully described later on at a court proceeding. right now they're in a liquidity crisis that. >> is woefully inadequate on informing their shareholders. >> completely. >> we got lucky. traded up. and as these things do, the valuation on this little stub of equity like this now can really be volatile.

it's up. we sold it at 99 done. i'm done. >> you're out, out, out. not looking at the debt, would not be tempted by that? >> i'm sort of tempted. but we're really in an information vacuum, which is not a great place to be. >> we should not let guy adami in this. fast fire over here. he was bullish from september. take a listen. >> gt advanced technology. they had a huge sell-off. no, i think it actually put in a bottom. >> really? >> had a decent day today. i know it's only a $11.50 stock. it was up today. i think it flushd everybody. i don't know if it can trade back to 18, but easily back to 13, 14. big move. >> wrong. 100% wrong. actually i have no idea. >> 90% wrong. >> but karen's point, i think a lot of people were blind side. clearly, i didn't see any warning signs other than the

stock traded lousy into this. there were no warning signs to indicate this was going to trade down to basically 90 cents. dead wrong. that's about as bad as it gets. and i am sorry about that. >> there was one warning sign. and i'm not saying that they were looking for kind of a move, a 90% move. they weren't looking for bankruptcy. but on the day that apple released the phone, and you looked at gtat stock, it not only got hit, but it went from trading 14,000 puts a day in august to trading 40,000 puts that day. >> wow. >> now, forget that day for just a moment, be you go back to last week, on two days last week, it traded over 50,000 contracts on the put side buying october 10s, november 11s. extremely active. somebody was out there sniffing around saying something is not right. something is going on. now they weren't going way out of the money, but they weren't really way out of the money puts to buy. people were definitely positioning for something in the short-term. >> this is a heavily shorted stock. there were some people who were

41% of its shares ood were short. so dan, you're saying this is actual lay measure of sentiment here? >> i think it could. i think when people talk about apple and their suppliers and these massive product cycles where they ramp into these things, it can be such a huge success story. to me i've been saying this for a few weeks now. i think we hit a top in some ways. and thing is one example of it where there was so much trader focus on this name. this thing traded like a biotech over the last month or so. so to me, i think a lot of traders got washed out. i think it's a very dangerous situation. i think you have to remember that when you have a company that has pinned all of their hopes on one other company. if apple really did pull this line from them, they knew it was going to be lights out. so what are they thinking about? are they thinking we're going to drive down the cost of sapphire all over the place because they know how difficult it is, you know what i mean? >> when you say lights out, there is the underlying business. >> of course. the equity is washed out. but here -- this company will not be able to operate the way

they were when they had the $578 million line of credit from apple. they're going to have to be cutting production, cutting staff. it's not going to look anything like it did two months ago. >> gt advanced technologies is the supplier for solar companies. it is part of the guggenheim solar index which fell more than 4% in today's session. let's bring in collin rush, the senior analyst. great to have you with us. >> thanks for having me. >> what is the actual impact of this bankruptcy filing on solar companies? because across the board we did see a sell-off? >> i think it's almost zero. when we're looking at the capacity derns that are happening in the solar industry this year, we're looking at a $70 billion plus cap x asset across the industry, these guys will sell maybe $50,000 of capital equipment this year. we think the real story on solar is really the fact that the industry has gone below repair and a structural change in the cost of capital for the industry which is only making equipment providers like sun power, canadian power better plays as we go forward.

>> are there companies that will benefit from this bankruptcy? >> not really. >> okay. what we've seen is there has been a big cap in the solar industry. we have a lot of capacity. singlization go up across the industry. not in the wafer and polysilicon side yet. >> in teams of the cheaper capital you say the industry margin could increase two or three times because of the cheaper costs of capital. >> absolutely. >> who is going to benefit the most? >> initially the financial companies, sunedison, that have seen the arbitrage really play out. we've seen more competition among the yellow coats we think the value is going to go back to the developers and the equipment providers, the solar module manufacturers. >> so the yield coevolution has been a great thing. but we have on the horizon the big tax change in 2017. >> absolutely. it simplifies the cap structure to get rid of the tax credit. as we go from 11, 12% returns

unlevered down to something like 6%, there is plenty of margin here. wand the tax credits involved here, they're taking the bulk of the profits out of the industry and complicating the cap table. so the deal structure is complicated. it's slower. we think getting rid of the tax credit makes this industry more efficient and drives growth as we go forward. >> according to tesla, you covered that. you have a buy rating $253 price. the stock closed at 260, to me, something has to change. either you change your rate organize your change your price target. what is more likely? >> i think we change the price target. as we look at these guys ramping the giga factory and it's probably going to be sold into stationary storage for the grid we see an extra billion and a half, two billion profit that is not being accounted. we think it's 2018, 2019 where we see the value get realized and think the stock starts to reelect that over the next couple of months. sunedison. >> and karen is in it too.

>> that seems to be the best name right now. coming up, yahoo confirming it is the latest victim in the fight against cyberattacks we'll hear from the former homeland security secretary on his latest initiative into the world of cyberinsurance. stay tuned. >> "fast money" means trading. everybody's got to bring their best information each and every night. the entire trading day is the preparation for the show that night. >> it's idea generation. it's all about giving you a framework for how to look at the market. as the world as changed, our show has evolved. i am guy adami. i am "fast money." >> i am pete najarian. i am "fast money." >> are you "fast money"? go to the nbcuniversal store and order your "fast money" t. run with the big dogs. create things that help people. design safer cars. faster computers. smarter grids and smarter phones. think up new ways to produce energy. ♪ be an engineer. solve problems the world needs solved.

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some unusual activity, looking at goodyear tire. >> this is one of the names when we've seen unusual activity, it's normally been very, very telling for the future. november 23 calls here very aggressive. bought right after the opening first half over over 2,000 of these trade. some very aggressive buyers. but also going out to january, buying the 23-25 spread as well,

2,000 times. some aggressive folks coming in here. some stocks on the lower end of the range. you look at goodyear tire right now, it gets interesting. you see the option activity, it certainly raise as few eyebrows to say the stock is going higher. >> i'm curious. what is that 22-25? >> 23-25. >> how much is that? >> 55 cents. i did the spread. i went out to january and bought a little time. i look that better than the november options that expire in a few weeks. coming up next, we'll get an update on the latest ebola developments in the u.s. plus a deeper dive into the soaring biotech trade. brazil rallying, but dennis garvin says stay away. he'll explain later on. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today.

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welcome back to "fast money." we are live at the nasdaq market site. here is what is coming up. the latest on the ebola outbreak and which biotech companies have treatments but also have enough supply to deal with the epidemic. we're live at the cdc. and yahoo, the latest company to fall victim to cyberattack. we have the former homeland security secretary tom ridge to talk about a new product that could mitigate losses from cyberattacks. this is first on cnbc.

and facebook's what's app deal is now official. dan nathan has a very special "options action" on facebook coming up. we start because of shares of chimerix soaring today on news the ebola patient in texas will be treated with chimerix's drug otherwise known as brin. watching the situation for us. meg, what is the latest for us? >> hey, melissa, that's right. we have some news about how the u.s. is trying to assure americans that it's making sure that ebola doesn't spread here. president obama just saying this afternoon that the u.s. is considering strengthening screening for travelers out of the affected countries in west africa and into the united states. >> we're also going to be working on protocols to do additional passenger screening both at the source and here in the united states. all of these things make us company that the united states at least the chances of an outbreak, of an epidemic here are extraordinarily low.

>> now we talked here at the cdc earlier with director tom frieden. and he emphasized that any of the efforts that it doesn't make the outbreak in west africa worse by further isolating the countries. there is also news of the first transmission of ebola outside of africa that was a spanish nurse diagnosed after treating a priest who died from the disease. she is currently in stable condition. also some news on ashoka mukpo. they're discussing whether to give him experimental drugs. that's the same hospital that treated dr. risacra. and we were told he was given tekmira's drug. being treated in dallas, he was the first and only u.s. patient to be diagnosed with ebola. he is currently in critical but stable condition and receiving brincidofovir, that's chimerix's experimental. >> can you talk to us about the

amounts of drugs that are out there in because brin got an emergency new drug application by the fda. but all these companies with the experimental vaccines and treatments, these are very, very limited quantities. are we in at risk of running out? which companies can actually ramp production? >> that's right. right now all of these companies were in very, very early stages of testing these drugs, as you know. so all of them would have to ramp up production quite significantly. interesting, it's a drug from fuji film, the japanese company that makes a drug for flu that has been approved there has the most supply, about 10,000 doses according to the w.h.o. but it hasn't shown enough efficacy and there hasn't been a lot of talk about using that one. zmapp is one that is talked about most, but that is completely out of supply. the government is working to ramp that up. but that could take months. tekmira, serepta are participating in a consortium of clinical trials. and investors in tekmira believe they could ramp up that quickly. but 900 courses may be available

by early 2015. so all of these companies would need money and would need time to ramp up these experimental drugs. i was just e-mailing with the ceo of serepta. they would need money in several months north to produce about 100 courses of their drug. >> meg, we're going to leave there it. thank you for your reporting. meg tirrell in atlanta. the problem is not demand. the problem is supply at this point. >> last week we talked about tekmira. meg came on and said it doesn't matter whether or not it works which is a terrible thing to say. the news flow is such that it should trade back up to $30. and magically, by friday it was trading 29.93. probably flush out a little again tomorrow. i think it's going to continue to have this roller coaster and now at the lower end of the range. >> yahoo, the latest company to confirm a cyberattack. the incident which they said it didn't affect customer data

comes 24 hours after james comb my tackled the scope of cybersecurity breaches on "60 minutes." >> there are two kinds of big companies in the united states. there are those who have been hacked by the chinese and those who don't know they have been hacked by the chinese. >> today lloyds of london is teaming up with the nation's first ever homeland secretary to counter. mr. secretary, thank you so much for your time for joining us. especially during the month of october, which is national cybersecurity month. in terms of viewing the market opportunity, which i guess is the same thing as viewing what the threat is, in the u.s., what is your belief in terms of companies that have been hacked? >> well, i think that it's far more have been attacked than reported. i think the challenge associated with running an enterprise is to get the c suite to accept the notion that in the digital forever more that it's no longer an information technology product problem, it is a

business risk. and like any manager would do, you try to offset that risk. that's why we work with lloyds of london, because they've got the flexibility and the expertise to design a methodology that is threat-based. it's an integrated assessment of the capabilities an existing company has and the tools to froeb see if they are prepared to defend themselves. and based on that assessment, a risk management assessment, we'll give the green light to the syndicate, lloyds of london to ensure the company. it has taken us several months to work with lloyds to come up with a methodology we think is very unique in the marketplace. it's no longer a check the box. in order to get this insurance from lloyds, you have to agree to this fairly intensive assessment that is threat-driven. we're going to take a look at the regulations. we're going to take a look at whether or not you begin to comply with the voluntary cybersecurity standards that are result of the presidential directive. and then we have a utechnical tool. we're going to probe part of your system to see how well you're doing. if it looks good in terms of

risk assessment, then the underwriters will issue the insurance. >> what is the sales pitch here, mr. secretary? because what we have seen even for some of the biggest cyberattacks is that the cost of the company really isn't that much. and on the part of investors, at least, they look through that event as sort of a one-off event. and it's a write-down essentially for company. what gets them to actually buy this insurance to cover potential losses when the losses at least to date have been manageable? >> well, the losses may be manageable. but you do -- at the end of the day, in any good business needs to assess the business risk, if there is a risk. we're initially going to target small and mid cap companies. we think that's an environment that a rich opportunity for us. and at the end of the day, if there is a risk out there, and if you are a risk manager, it worthwhile to minimize the risk? look, i don't say this because i happen to be an attorney by profession. but the next sweet spot for litigation will be those

inquiries based on those companies that had an attack to see whether or not they used best practices, whether they used technology that is off the shelf, whether they made themselves available to some of the kinds of offerings that we are going to present to these companies. so i think the sales and the marketing is going to be fairly easy in the digital environment. the digital sun is never going to set. the risk is permanent. you need to reduce that risk. one of the ways risk managers reduce risk for a lot of things is insurance. but we're going further than that. we will try to work with the companies as a trusted adviser, not only sell them that insurance product after we've done an assessment, but i think it's critical for them to take a look at us. because it's a dynamic threat environment. the threat constantly changes. and i think we have other capabilities that will help reduce the threat, diminish the threat to their enterprise. >> mr. secretary, thank you so much for joining us. we appreciate it. >> thank you very much. >> tom ridge. >> good to talk with you. >> all right. so let's try this. we've had other companies offer cyberinsurance, but i think the

more interesting trade these days as you mentioned palo alto or cyberarc or fireeye. >> when you look at palo alto, it's has this massive run. it seems like that's the one that investors are betting on. to me, it's got to be that way. i don't think you go -- i keep getting this question all the time with fireeye. it's so down and out. they're in this space. don't go for the losers here. you stick with the ones that are work right now. because obviously these guys have the growth right here. i just wouldn't buy it here. i'd wait for a pullback. remember, this thing is up than more than 100% in not too long a period of time. >> my two favorite plays is fiiv. even as it continues to move toward its 52-week highs and intel. i continue to look at intel as far too cheap. i think the stock guess a lot higher for a lot of reason. time for pops and drops. a drop with jcpenney down 6%. karen? >> it was terrible day for retail, not just for jcpenney. thing is fears about sales slowing down in front of their

analyst day later this week. i like macy's much better. >> drop for zillow down 2%. >> this one caught my eye. closed below for the first time since 2013. this was a stock in the spring did not sell off. they finally made the bid for trulia and it went up. since then it's been down 30%. i wouldn't try to pick this one. it seems like there is some agriculturer to issues with this deal. if it falls apart maybe the stock goes lower. it's a break of like momentum that has been in place for a very long time. >> drop micron down to 4%. samsung will invest nearly 15 billion at a chip plant in south korea. >> it has 4% moves up and down september. it's imperative that it holds 30 bucks. i think it will. >> a pop for el pollo loco. up 4%. >> they've been consolidating for a long time. bounced through the 50-day. i think the stock is off to the races. traded almost to the highs. closed almost at the highs of

this day today. coming up, brazil stocks rallying on hopes of pro-business stay away. we'll tell you why, right after this.

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brazilian getting a big boost after the conclusion of the country's first round presidential vote over the weekend. despite today's strength, our next guest says to stay out of brazil. let's bring in dennis gartman, editor and publisher of the gartman letter. why would you say that, dennis? >> for a very simple reason. everybody got excited because inner nieve sent it up and ms. silva wound up in third place. and president rousseff got about 43% of the vote. everybody thinks that mr. neves has a chance to win this election. he has no chance whatsoever to win the election. president rousseff is going to win. she is a marxist, a former guerrilla. i'm sorry, ex--marxist and former girlfriends do not change their stripe. sand she is not silva delula who did a great job prior to rousseff. i'm fearful of this young lady being president again. i think she is going to move even farther left. she ran a very left campaign. and anybody who got excited

about the fact that mr. neves finished second is ill advised. >> dennis, i want to get to aluminum and steel. we've got alcoa kick off earnings season on wednesday. give us the trade here. >> i think it's time once again after steel has fallen precipitously, big steel has fallen 35% in the last several weeks. nucor has fallen dramatically. i think the global economy is still going to be strong in a global economic upturn. i think that's what is going to half. it's an old story of mine. if you drop them on your foot, you want to own them. i want to buy steel. i want to buy rails. i want to buy aluminum. and i think that alcoa, having been out of now for two and a half week news and having been in it for almost a year, it's time to start look at owning those very simple ideas. alcoa and big steel are my ideas again for if first time in a while. >> dennis gartman, the gartman letter. >> thanks. >> guy adami, into earnings. >> u.s. steel ran up to 45, overshot a little and right back down. i think u.s. steel is

interesting here. i don't think the risk -- i think the risk-reward sets up really well you. don't have to risk that much in u.s. steel. and alcoa pouring out the price action, the huge reversal. good job by dennis. >> coming up, cnbc launching the group of candidates for its next 25 list. these people will change the face of business over the next 25 years. but who is missing? the traders spill on who they think should have made the cut. plus, you get to weigh in too. get your iphone, tablet, pcs, whatever you got going to cnbc.com/vote. pick the trader you agree with. it all starts right after this break. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier.

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facebook closed its what's app acquisition today but the hefty price tag didn't impress one actions trader. dan is at the smart board with today's action. >> it might not have impressed the options trader on the trade we're going to talk about. but average daily volume today was only about -- the stock only traded options about 70% of the average daily volume, which is really interesting. shortly after the open, there was this trade where it looked to be an override, where looking out to october 2015 expiration. 6,000 of the october 82.5 calls

at about 80, 85. it's probably a yield enhancement trade. what they're doing is creating a call away level on october expiration, or a buffer to the downside, down to about 69. so 69 to 91.35. that call sell of 885 of the october 2015, 82.5 calls creates this massive buffer. if the stock goes sideways, if you want to look at it over here, that's going to create a situation where there is a big buffer. and i would just add one more point here. you just mentioned the what's app deal closing today. part of the payment that of deal was 177 million of unrestricted shares that the founders of what's app. so possibly you have a situation over months, they may be piecing this out. they also have about 80 million of restricted shares there could be some more supply on the market here. and maybe this long holder is just thinking i might as well sell some options premium and take in some cash. >> thanks for that, dan.

check out option action.cnbc.com. cnbc has compiled a list of leaders that could change the face of business over the next 25 years. it is called the next list whom. made the cut? everyone from big ackman to actress jessica alba. who is missing from this list? here is who our traders think is missing. derek jeter. guy picked andrew wilson, the ceo of electronic arts. karen says house budget chairman paul ryan. and pete says nike chairman phil knight. who would you vote for? while we discuss, it is your time to vote. get to it right now, cast your vote. you can vote as many times as you want while we're discussing this. fun, huh? >> phil knight. >> fun, fun, fun. >> he is older than me and you. >> he is. but he has a lot of life left into him right now. talk about innovation. nike, everything put them out for dead. they said they cannot grow anymore. they're done innovating. that's not true. look at this multibillion industry that is still crushing

just about everybody else and owns the industry. they continue to have some great deals. they just signed a deal with lebron james who also should be on the list. actually on the list that was who i wanted to go with. but i tell you what, i think phil knight and what nike continues to do with these contracts, with lockups, look at the oregon program. everybody in college football and college sports looks at oregon and they all try to rip it offment they're still innovating. >> derek jeter? >> as a derivative trade of phil knight. this guy is going to be a monster with nike for decades to come. he is an absolute open canvas when you think about his success and character here is guy at 40 years old with his whole life ahead of him, he has a fortune. everybody wants to be afill indicated with him. maybe it's politics. maybe it's big business. maybe it's new media. i think he is going to be around for decades to come and hinge see going to a major force. >> you think paul ryan is going to rise above the chairman of the house committee? >> he'll be a very important voice in a few very significant debates. the deficit is one. and tax reform, something we talk about all the time.

i think that will need to be addressed in the next coming years. i don't know when, but i think he will be an important part of the negotiation. >> why the ceo of -- >> 39 years old, been there since 2002. you look at what madden game has done. he has great vision. he has executed. the stock was left for dead three years ago. it's basically quadrupled since. i think he is going to continue to do great things for them. >> we're closing the vote here. for a long time derek jeter was in the lead. and then karen started talking and paul ryan. paul ryan. we're coming right back.

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>> the post op there. exxonmobil. pete and i were talking about that. giddyup. >> i'm melissa lee. thank you so much for watching. see you back again tomorrow on "fast money." in the meantime, don't go anywhere. "mad money" with jim cramer íé?b make you money.c i'm here to level the playing field for allc investors, there is always hom-wt)k in summer and i promise to help you find it. mad moneyxdw3fálpjf starts now. >> hey, i'm cramer. trying to make youxd alp little money. my÷d job isw3 to teach and coacu so-call me at fáq1800-743-cnbc. we live in afáñr confusing mome someone yapping on the tv orñi