say buy apple. >> go long on unusual looking felines. grumpy cat if you are into alternatives. >> thank you very much for being here. fast money coming up. hey, sarah, what's on tap? >> we have dennis live in the flesh here at the nasdaq site to talk about the bear market and oil going deeper today. >> we want to know how much deeper. over to you guys. >> thanks very much. fast money starts now live from the nasdaq market site in time square for melissa lee. tim seymour and big moves in the market today. energy getting crushed. mcdonald's hurt by the strong dollar among other things. apple dragging down the daz nabbing and the momentum names getting hit hard. we are talking about go pro, twitter, tesla taking it on the chin. we will tell you what to do with all of those names coming up. we have to start with a move in

oil. settling at a five-year low, down more than 4%. morgan stanley cutting the oil forecast late friday. is there any sign of a bomb coming in? i know you are not going to call bottom. >> i continue to stay along the airlines. this is the right trade. and conco phillips, just last minute we had unusual activity. it brought me into the name and it brought me into where i am. it looks broken down into the low end of the range. i like what they talked about. they talked about what they would be doing from a drilling perspective and an idea of what to expect. i think this stock hasn't bottomed, but i like it. >> they were going to cut capital 20%. are they expecting the move to be sustained? >> that's big news. that's a lot of ego attached. you look at the price and there is a lot of value that is not just conco.

they have a difcent that is very important. we probably think oil can go lower. if you look at where we are, production despite what saudi arabia has done, that's what a lot of them were saying on the day after. i'm not sure, but i'm sure it's going lower. a lot of them, they are hedged through the first quarter. at least the listen to, these guys say we bottomed somewhere around the end of the first quarter i think, in the meantime, you are seeing extreme value in the number of the underlying equities. stay with integrated names. >> you are talking about decade-low valuations for these companies. >> 20-year lows. >> sometimes these companies. dan, what about you? >> you just talked about production cuts. you are going to talk about cap ex cuts and job cuts. we saw that out of b.p. maybe dividend cuts. >> what conico is doing is totally opposite. who knows where the bottom is.

i don't think you have to rush in right now. the decline we have seen in the last few months is scary. when you take it over to other industrial commodities and the crb banging around at three-year lows. who knows where the bottom is. when you soo he this sort of volatility in an asset class, one of the biggest industrial commodities, i don't think you have to look for bargains too soon. >> are you willing to put a number on that? >> i have no idea. >> morgan stanley, that report was very bearish, 43. worst case scenario. they said average 70. >> i think the street feels as if they have to make major adjustments and they are. >> what about you, guy, transocean? >> rick scares me. now, you have a dividend of close to 16%, if not, in rig. you have to ask yourself, something has to give. either they cut the difficult sdend or the stocks are going to rally and it cuts the forum. i this i it is going to be the

former. that's when you buy the stock. that will get you the capitulation. con co conocophillips, the implied options. they are double what they normally should be in terms of what you can get for premium. buying the stock and selling against it, sarah, that's the simplistic way of looking at this, you are getting top double what you normally would get. that gives you that much more room to the up side and protects you to the down side. >> let's bring in jim gartman. you have been watching this move in energy like the rest of us. it is a broader move in commodities. how much further? >> i think oil can go down a lot farther. let's take a look at history. in the late 19th century, crude oil traded at $3.85 a barrel and went down to a dime.

at the turn of the 20th century, went down to $14 a barrel, went down to a dime. last time, $114 a barrel, down to $10 a barrel. i think we have just barely started. it doesn't matter here in the united states what our cost of production is compared to what's going on over in iran, over in russia. they have made promises to their citizens, predicated upon $110, $120, $130. at $60, are they going to curtail production? no. they have to increase because they need the cash. >> it sounds like your forecast is based on supply. don't you have to factor in demand. we just had a jobs report. >> demand will increase. >> doesn't that put a floor under the price? >> write this down. there will be a floor when there is a floor. until there is a floor, there isn't one. prices are going to continue to go down because there is going to be pressure from iran and russia and venezuela, who have

made promises. >> you don't think opec is going to come in? >> i don't think opec is going to come in at all. i think they are happy as lark. saudi arabia is happy to see damage to the russians and the iranians, their long-term enemies. they are making sure they are defending market share. that's their intention. >> i don't believe price is truth here. >> i say price is truth. >> that means that oil is -- in terms of demand, you this i that global deman has dissipated. this is an indictment on the global economy. >> and the chinese imports went up in the past ten months. >> it is a boon for a lot of xhes. gdp next year. >> absolutely. i will not argue that. this is a boon for economies everywhere. it is a boom for everything else except for north dakota. it is darn good for north carolina. it is darn good for virginia. it is darn good for ohio, absolutely. >> and some of the big importing

countries. dennis, where are you playing at? >> short of crude oil, period, end of discussion. it is going to weigh on commodity prices. pete has the right idea. the easiest place an the simplest place to be is the air lir lines. >> and stronger dollar, which has been intact. >> and a stronger dollar. i think we are in the third end of a 12-inning game. >> are you willing to call a level on your crude forecast. >> the one thing to watch. i've learned this the hardest way. watch the term structure in the futures market. as long as it continues to be that the front is leading the way down, until you get a period of time when you have a collapse in prices and the front months don't lose relative to the back months, that will be the first time you can be bullish. when that happens, i haven't the faintest idea. it is a lot lower than where it is right now.

>> all right. dennis gartman, thanks very much. always good to see you. >> always good to be seen. >> let's put a final thought here on how you deal with this energy move. the s&p energy index dragged down the whole market today. what a brutal day. >> a lot of people think that oil earnings, to me, it gets a big boost. it is pushing back cpac. this is going to accelerate quantitative easing in europe. the dollar strenlt, the euro better. by the ewg into the first quarter. i think it has underperformed. >> jpmorgan had a note out late in the week. talk about united going from $74 to $99. that might seem a little bit far fetched. $70 for united and some of these names. delta, american, going up another $10, give or take from where they are right now. i don't think that's extraordinarily out of the picture. >> if you look at the groups

that gain, utilities, held caal care and financial. >> a lot of today's trade was payroll numbers. the fed meeting next week, very important. they are going to start to take away. a lot of them think they will take away the extended language. financials do really well. >> i don't know on what planet the fed can talk about losing rates. when you think about the data around the world, you are talking about this being a boon to gdp in 2015. is the tail wagging the dog right now? when you look at the equity performance, obviously in russia, brazil, they are making lows right here. we are at the highs. china has had this huge move. europe, the data is not great. the difference between what the markets are doing and the economic data, right here, it seems like we are the only spot where there is any good economic data. i am not certain this is a supply thing as far as the commodity situation. i think it is telling us a lot more about global growth.

>> you are saying the fed is tote little out of the picture. >> i think the way the dollar is going, we are pretty screwed. >> the tenure broke. guy, adami, kogood call. >> the rates are going down. we are going to take the october 16th, low in yields. i think it is a deflationary environment. >> we have to leave it there. apple, down more than 2% today after a tough couple of weeks. are the apple highs over for 2014? we have someone with a $135 price target to make his bullish case next. plus, the momentum playbook gopro, twitter, tesla, are these buying opportunities or are they dead? coming up on "fast money."

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we're for an opens you internet for all.sing. we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. welcome back to "fast money." we are watching shares of t-moechblt they are beginning a public offering of 17.5 shares or units of a mandatory preferred security. a hybrid between a stock and a

bond. it has a liquidation preference or convert area to $50 a share. the stock is currently down by 3.75% on 26,000 shares of volume. >> thanks for pointing the volume. >> if you are waiting for these guys to get bought, they are raising the capital and need to compete better in what's becoming an increasingly competitive environment. they have been the uncarrier that's meant unprofitability. the thing that's really sloppy on the pricing of the convert, maybe you take as shot as a trade. >> walter pisez follows apple. he has a $135 price target. you aren't the only one. a lot have o your fellow analysts have been ups the forecast as the price has been falling. >> the stock is off about 5%

since black friday. there is maybe some concern about what the follow-through is on sales. verizon upgraded investors. the number of customers upgrading their phones is 9.5%. that's going to hurt verizon but a very good indicator of the type of iphone sales we are going to see. they deliver numbers like that. that should help the stock. you see this is a good-bying opportunity. >> the 5% selloff presents an attractive entry point. >> what about catalyst? what's going to take it to new heights? we have been talking about the iphone 6 and 6 plus for a while. >> they are going to report this big quarter. i think everyone is focused on the unit number. the reality is that people need higher capacity falling. we could see up side on the asps. apple is getting phenomenal margin from you go from 16 to 64

gig abit. they are charging you $100 extra but they are only paying the nan guys, san disc or my kron or samsung. a huge incremental profit margin that they are getting. that could deliver some up side. apple wash we are all familiar with. very expensive product. there is a wide range. some people are talking about thousands of dollars for some of the models, which could obviously have significant margins. unit numbers time whoever knows what the asp is going to be. the management team has talked about, hey, you don't know some of the stuff that we are working on that hasn't bubbled up into the press. when you look across the course of the year, there are other opportunities of new products they can announce. >> is the street really priced in the iwatch.

first time since 2010, a new product. where do you go with the multiple on the stock? once you get through the iphone refresh, i do too, is going to be phenomenal. where are you left? it looks like it could be stressed. >> trading up 15 times their earnings this year. the move has been on the excitement about the iphone 6. i think people have forgotten about the watch. if anything, there is a slight delay. there was some expectation of happening q-1 as opposed to q-2. 20% earnings growth. the organic growth, 13%, profit, 13%. the buyback is giving that 20% growth. nevertheless, 20% earnings growth for a 15 multiple. >> btig, thanks very much with the bullish take on apple. let's trade it. we have some fans at the table. >> walter talks about some of the margins. i think he is 100% right.

the channel checks and what you are hearing throughout the street has been people wanting to upgrade to those higher priced models. the margin is much better there. the 6 and 6 plus. the asian market is another area i think not only are they just starting to scratch the surface. a lot of people talking about how they are stealing some of that share from samsung. this is undervalued. it goes a lot higher once we get some of the numbers. >> i was reluctant to sell it up near the top. these guys have multiple ways they can deliver through the refresh cycle. they have a new product, the entire ecosystem. the dividend yield, capital markets. these are all kacatalysts for t stocks. >> what i hear about that incremental margin they are getting, that to me, if i'm samsung or any of their competitors, that's where i am attacking them. we already know that they are 5 percentage points lower than

their peak margins. i don't see a 38% margin holding to that long. if you are telling me it is that juicy and the most come mod advertised product on the planet. if they are going to give up the medium and low end, it isn't going to trade at that. it is a hardware company. i am not telling you it is as good as it gets. there is a lot of news in the stock right now. >> walter mentioned verizon real quick. it has had a horrible month of november. december might be worse. i think it is going to trade to 46. you have these double tops to come into play. verizon at 48.25, trades to 46. buy it there. >> a surprise verizon trade. >> next on "fast money," names like twitter, tesla, gopro, falling hard in today's trade. we'll go deeper into the hardest hit names. we will tell you how to trade the down turn. later, google trying to lock up

some of its big stars on youtube to prevent them from jumping to the competition. we'll talk about that competition ahead on "fast money." from record-breaking highs to major market meltdowns. every night, the "fast money" team makes sense of the trades, serving up in-depth analysis and actionable advice, all to help you prepare for the next trading day. >> i do believe you can stay in that trade. i would not chase it tomorrow. >> this is "fast money." have a market's question, tweet us at cnbc "fast money." [ breathing deeply ]

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introducing cvs health. because health is everything. high momentums getting taken to the woodshed in trades. we are doing a momentum breakdown addition. gopro, one of the hardest hit momentum stocks falling more than 6%. dan? >> this is overhang. here is a company that went public more than 5.5 months ago.

they have sold some stock, secondary at $75. the company that said they weren't going to sell actually sold. the founder who wasn't going to sell actually sold. i suspect you probably see a lot of people sell as soon as they can. the stock is in the high 60s. the thing went public less than six months ago at $24. you look around in technology. if you are a small cap high valuation thing, it is not a great time. >> i thought everybody in asia were buying gopros. >> i think najarian bought all of them. >> i have owned these for over a year, different devices from them. the latest one, giddy-up, that's on the christmas list as well in the najarian household. it is phenomenal. i think there is up side here. i think this quarter, very similar to apple. it really shocks people. >> you buy it in front of the lockup. >> i already own it. >> so are you buying it because you like the cameras and the sales or because they have ambitions to are more of a

content, media company? >> the content, i this i they are going to capitalize on that. all of the above. you look at the content they put up, it is an attracts, something that's addictive. people love it. it goes after the right generation, people with money in their pocket. >> these are popular. >> what happens to the stock in the first quarter after your entire family is done buying the cameras. >> it is not my entire family. people already know on the tests that people are going for the most expensive. apple, they are buying the most expensive. i correlate this to how you have to buy the quarter in front of you. people are buying the highest margin area. >> it is priced in now. >> i don't believe it is priced in. >> are you kidding me? look at the multiple on this company. >> i can see you being the first gopro breakout star. >> i am with pete. i think it is a third of those

things. i think they become a content play and they make their transition. valuation is crazy, ridiculous. there will be an upgrade cycle in this name. i am surprised at how poorly it has been traded. >> it has to hold 65. >> i get that it is expensive and volatile. i think it goes higher. >> twitter sliding nearly 6%. pete, what do you do? >> they had some insiders that had to release and left. all the shakeup that's going on, when you really look at twitter, it has been in this range for the last month or so since early november. $40 stock, got to $42. now, it breaks down once again. they have to prove. this is a show-me stock right now. they have to show people how they are going to be able to make money in the future. we have seen it out of facebook. twitter has yet to unfold. >> this is one to me.

i think it is such a scarce project, no one else doing what they are doing. when you think of a $24 billion market cap, facebook has no sales. this thing gets gobbled up by google, micro soft, google has a real-time search problem. i don't see how companies are not looking at the scarcity value of this property and not taking it out. tesla, another momentum stock falling more than 4%. tesla's worst seven-day run since going public. >> i think the price of crude oil is finally catching up to these guys. it didn't for a long time. our level has been 225. tim has been in the 220 camp. what does that mean? a couple days selting below these levels, 220, 225, it sets us up to go down to the low of 180. how do you trade the stock? buy it. if it breaks back through 225.

look for that trade to hold up or wait for this push down to 180, which is inevitable if we drift at these levels. >> what do you think, pete? >> i agree with guy. it is like one of these names. we talked about how you play this through options. the options were cheap. that's why that was the way to play it. option values in tesla are finally starting to creep up a little bit. they are not nearly as cheap as they once were. i don't think that's the best way to try to play this. >> you are getting to a place where in tesla's defense therks should not be trading on oil prices here. this is totally a different story. this is a fantastic technology. we have said that all along. too soon that there is no competition in the space. they are actually talking about sharing this great technology with other automakers. that's fantastic. you shouldn't be focused on the production numbers they are not going to hit any way. you realize it as they take profits on trades that have done fine but can't sustain these

levels into next year. 2010 is a very important level. if it breaks this, it goes lower. >> a lousy steve miller song. >> seriously, is that the theme here? is that what's going on behind this? >> profit taking toward the end of the year, the fact that the market has been weak. it has had this tremendous runoff. >> it gives us an insight into how much folks are getting squeezed in energy. it is literally forcing selling in areas where you have made some money or you feel like you are vulnerable because the volatility of where you are is just too much. >> or it was just a beta chase. make up some short-term gains. i don't think these are people that want to take huge profits in the mid-december sort of thing. >> facebook making a play to poach some of google's best youtube talent. we have a look at how google is fighting back against the competition. later, mcdonald's sales dropping big-time.

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still ahead of "fast money," watch out google, facebook wants your youtube stars to change teams. we've got the latest on the video battle. big mac's bad day. mcdonald's getting hit on weak sales. a stronger dollar. could other fast foods be at risk? >> lulu lemlemon numbers coming. the stars of youtube are pinning two internet stars against each other. google trying to keep them from jumping to facebook and taking tens of millions of add revenue with them. this journal article "today" showed how these youtube stars are becoming so valuable to google, they can't let them be taken by facebook.

>> you get 1 million or so users coming once a month, one time a day, you can write numbers that generate $10 million, $15 million a year. these platforms to pay these producers, $3 million, $4 million, $5 million, they make sense. >> how much google has been able to montize youtube. the fact that it is going up against facebook and netflix. >> what's interesting, the advertisers. start looking for premium content online, looking to follow the younger generation and slist away from the linear tv. when you see the numbers and how much they want to spend. i believe they said they will buy every single premium impression online. there isn't enough yet. >> the first internet bubble burst because people stopped looking at banner ads. they were start-ups and things.

when you think about facebook, they have had tremendous revenue growth as it relates to montizi montizing through ads. let's say they get some of these sales, what percentage of their sales is wrapped up in this. if this slows down, are we going to see these multiples contract a bit? great question. you see the uber evaluation of $40 million. a lot of people talking about valuations in the private side. what i think is interesting, they were out with an article talking about heineken around the engagement rates. great engagement by the users. >> i'm surprised at how much these youtube stars are actually making. did you see that grump cat takes in more than christian reynaldo.

how much is google to losing it to facebook? >> the round numbers, somewhere around $4 billion to revenues from youtube to google? >> the math i was walking through before. if you can amass an audience, $1 milli million, 2 million people, they justify tens of millions being paid out to these producers. disney took out maker. you saw amazon take out twitch. they are amassing tens of weekly visitors. >> what do you do with google stock now that we have seen the selloff? >> you use it as a buying opportunity. a lot of big trends going their way. >> thanks very much. bob tack, always good to see you. >> dan, you just closed out your bearish google trade which has been a moneymaker. >> i put it on at about five percent ago. it was a technical thing.

one quick point about youtube. when you think about revenues, they did about $4 billion of trailing revenues. this is one of the largest social media companies in the world. it is a force to be reckoned with. >> guy, you like face back. >> i think the last quarter was outstanding. they are going to have this huge spend. it closed green. i think facebook does push back toward 85. >> do you think it is a story where facebook is continuing to gain share over google? >> google has not traded well the entire year. it made an all-time high, i believe, at the beginning of this year as effectively traded lower ever since. i think the stock is trying to tell you something. >> i'm not negative on google. i am positive on facebook. i think they have a $90 price target on facebook. we were seeing activity just

last week that drew me pack into facebook after not being there for a while. i look at facebook as a stock that's maybe ready to test that upper end over $80 a share. to guy's point, last quarter was phenomenal for facebook. i this i that continues. >> $80 ago, people wanted to buy google lower. they are still growing 22% a year and they are giving you that at a 20 multiple. this to me at this level, all the way back, listen to pete, to protect yourself with options, somewhere out $500, this is where you protect yourself. otherwise, this stock has bounced multiple times over the last couple of years. there is kata li licatalist. >> go to our pops and drops, the big movers of the day. a drop for yandex. >> ultimately, russia is getting

the most. a lot of the corporate stories are starting to wear down under the ruble story. you are starting to see guys that have slippage. this is a stock that is cheap. it is a stock i still like. i am not telling you to buy it tomorrow. >> pop for best buy, up 3%. >> we had black friday, saturn monday and i think today is green monday a little bump here. the stock was at 40. it went to 35. i suggest that this q-4 is as good as it gets. when you get an update in january, you don't want to be long on this stock. i think you see a $30 stock at some point. >> canadian pacific. >> i think this energy move is working against the rails. a huge move into the fall. it went from 210 to 180. this is a level we bounced from in july. it traded from the long side against $180. >> a drop for taser down 6%.

>> this is a stock that before the october selloff was an $18 stock. went down to 14 on the selloff. now, got all the way up over $25 a share. now, you get a down grade. i look at this an the valuations. i see where the stock is coming from. i don't think you want to jump in front of this. there is plenty of room to the down side. i would stay away from taser. >> getting hit in today's session after reporting a sharper than expected across all divisions in november. the burger giant blaming the decline on strong competitive can activity and a stronger u.s. dollar is a turn-around, tim, possible for mcdonald's. same store sales disappointing. >> it wasn't the global story or the dollar. it was the erosion in the u.s. you have to get to a place, which is where i'm at. you look at this multiple. this is how you have to own the stock.

company management is very good. they are being outflanked. >> what is telling you that company management is very good. >> they can handle their costs. they can handle a marketing blitz that has to come now. they underwhelm that they have acknowledged that. to say they are in a place where they are a sexy, leisure dining brand like the pollo loccos. i am not going to tell you it turns around overnight. i would much rather own this at $92, the stock went all the way back from 97 d$97. it has bounced a few times. these guys have proven themselves over and over again. is mcdonald's suddenly going to fall off the roads tomorrow. >> nobody is encouraged by the create your taste burger. it is what people want. they want to build their own burgers. this will cost them more and they have to wait. that's two things mcdonald's customers are not used to. >> there is quick serve and fast

food. this is fast food, whether they want to be called that or not. the competition in the lunch space right now, which is what all these really end up being, is starbucks. they are in part of this competition. the rest of the fast foods and the chipotles of the world. i think that really is digging in. they talked about competition. competition gets worse and makes it tougher and tougher all the time. we have to adjust our numbers based upon that for mcdonald's. >> you put on a trade young brands which has an analyst stay. >> what tim was saying on mcdonald's sales? a good percentage comes from china. we know the dollar is going to be hard. the economy is not great. when you think about what's going on here in the u.s. i don't think those mcdonald's sales numbers bode well. i don't think chipotle's success bodes well. i think you can see some cautious commentary. maybe a guy down here. i don't think you touch the stock. my bearish trade is in the options market in january. i am looking for 70 over the

next six weeks. >> it has been a china story over the past year. the biotech conference that celgene is taking over. except for one. we have the ceo of epizyme coming up after this break. because many customers don't like it when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be. today, there's a new way to work and it's made with ibm.

it is time for some unusual activity. pete, you are flagging the move in wire houser. >> this was way extreme to normal levels of option activity. this went out as the stock hit 52-week highs. pulled off of that, the december 36 calls were bought. over 4,000 trading. very interesting to see those trading around the 45 cent level. 8-1 calls to puts trading in there. very bullish. >> to biotech now. celgene is winning big at the american society of hematology. they are getting a stock boost

on a positive cancer research data. one name not sharing in that bounce, shares of epizyme falling almost 6%. meg terrell joins us live. she is joined exclusively by the ceo, robert gould. over to you. >> thank you so much. dr. gould, thank you for joining us. >> thank you, meg. it is my pleasure. >> a new technology called epigenetics. it is so new. there is a question of whether investors are getting the story. >> within the nucleus of your cell is dna. dna contains the genetic code which is what makes us humans. within each nucleus of your cell, there is just about 6 feet of dna, finger tip to finger tip. that dna is wound around proteins called hystones. that winding allows the dna to get into the nucleus of your cell. ep genetics is a mechanism of

controlling gene expression, the reading of those genes into other proteins via control mechanisms. that's what ep genetics is, a control of gene expression on the dna. >> we are seeing these genetic defined cancers personalized. here at the conference, you have presented someday ta. the stock has not responded positively. what do you think is going on there? >> i think the story is complex. what we've been excited about. we have two clinical programs, one in lieu kim yas and lymphomas and in both cases we are seeing clinical, meaningful clinical responses in patients living longer than they otherwise would. 2 out of 5 patients in the leukemia and 3 out of 5 in the lymphoma case. meaningful differences. what we have also discovered is really interesting biology, human biology that was not predicted from the animals. we are seeing more responses in

these patients than we would have predicted from our early work. for us, that's terrific, terrific for the patience ats a our investors. terrific for our understanding of how these cancers form. you are telling me this and now it is this. it is a much big tger opportuni for us. >> talking with investors and doctors, what do you think it is going to take for people to understand the story and to turn around the reaction to your stock, like you are saying positive data? >> i think it is telling the story over and over again. most people haven't heard about the genetics. they are not hearing about it for the first time. a story that they are hearing about that they haven't heard about repeatedly and not lots of other companies reinforcing. it could lead to a lack of understanding. i think time and more patients responding, which we obviously hope we are going to see in the future, will help turn that around. >> dr. gold, thank you so much.

we appreciate the time. >> it is my pleasure. >> prrobert, meg, thank you ver much. you are in celgene. >> people will say the stock is expensive. they have been saying it is expensive for the last literally $40. it is not. it has a balance sheet better than most big cap phrma names. a balance sheet that they would love to have. it is teflon in terms of their margins. i think the stock is cheap here. this company, big short, 25%. the fact they are getting involved in leukemia. that's near and dear to my heart. i'm on the board. >> jim cramer puts celgene at the top of his biotech list. >> you have some other names. >> i think i lean towards the big cap biotech names, specifically like an amgen, where you have a late stage pipeline chucked full of great potential sitting there. i also love that merck ac significance today as well.

let's talk about a company that got late stage drugs. look at the way merck traded. it was virtually unchanged for the balance of the day. it fits very, very well. that tells you what the street thinks about this. >> or you are seeing the street coming out this afternoon and earlier today with the numbers coming out, upgrading it and saying these guys have 29% over the next five years. the question is, does that price into the stock? so much good news has been priced in. granted, the last $40, they have been wrong. at this point, you can't tell me that these guys aren't saying the next $20 is going to be easier to get. i'm not sure. still ahead, lulu lemon prepping for its earnings report. we will tell you why traders are expecting a double digit move in the stock. next. [horn honk] what's this? this is the ultimate mobile work station. you need an upgrade. this has everything. you can still do all those things with your new

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we're for an opens you internet for all.sing. we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. lululemon reports earnings. which direction? >> i forgot my crystal ball. i can't tell you which direction. that 10% implied move in either direction is shy of the four

quarter average move of about 12%. the thing is usually a massive mover. it has 30% short interest. calls actually outdid puts today. 3-1. there was one trade that caught my eye, when it was $45.29. paying $4.35. about a half million dollars in premium. that breaks even at $45.35 on march expiration. this is not an earnings trade. when you go over here and you look at the chart and how depressed this is. it is about 25% off of the 52-week lows and 25% off of the 52-week highs. the trade breaks even, up about 10%, at that implied move. it also stops you out, right there, at essentially $40. that would be the massive breakdown level. at pete was saying before, sometimes options can be used for risk management purposes. this isn't specifically a

leverage trade. they want this long exposure. they are looking for up side. this is one way to define your risk to the breakout point at 50 or the breakdown level at 40. >> dan, so good on that smart board. i don't get it. i cannot be the only one paying $90 for yoga pants. why is lululemon such an underperformer? >> that's a good question about you. the shorts, the businesses are going to be come mod advertised. i think it moves to $50. >> when we return, more "fast money" coming right up. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,

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great fx trader. that is not my final trade. fire eye is. fascinating day in feye. >> it has been fun. i'll see you tomorrow. catch "fast money" again then. "mad money" with jim cramer begins right now. my mission is simple, to take you money. i'm here to level the playing field for all investors. there is always home work in summer and i promise to help you find it. "mad money" starts now. hey i'm cramer. welcome to "mad money." welcome to cramerica. people want to make friends, i'm here to make you money and educate and teach. call me or tweet me at jim cramer. on a nasty day where the dow took a dumble, plunging