hi, melissa lee. >> everybody's wondering what's going to happen with apple. it was down in today's session. we've got a top analyst who says there are five reasons why apple will continue its run. >> that's in contrast to colin gillis's call. >> exactly. "fast money" starts right now. i'm melissa lee. tim, seymour, dan, brian, and john najarian are your traders. american airlines has been one of the hottest. rallying 34% since the start of 2014 with all the major players locking in huge gains. but take a look at what has happened over the past month. delta and alaska air both down more than 7%. united down 6%. southwest falling 4% since the end of january. this as crude oil ended the day higher by 3%. so, we ask, are the best days for the airlines over? is this trade done? what do you say?

>> no, it's not done. they're up 7% to 10% also in the last five days. you know why they're pulling back? a bunch of the analysts have to remark brands. say, $60 in the short run. it's a mechanical exercise. once again, probably a couple weeks behind. where were all these guys two weeks ago when brent was starting to rally and they weren't ready to jump in there then. remember this about airlines. they are segmenting their customers better. if you look at the ancillary revenue in january, they're giving people more fees on drinks, on bags, on everything. they're doing it better. the margins for these guys are much better and they're cheap. they're cheap relative to their history. and this is something i think you have to listen to. so we didn't rework these guys as much as we should have when oil was at 110. why are we doing this to them now? >> i would ask the question why weren't they trading differently when oil was 110? i think here's a sector in the industry that shot themselves in the foot almost every time.

you think about the last few years, this consolidation, that sort of thing. i actually don't think you buy them here. if you think crude is stabilizing, where do you think these stocks are going to go? i understand what you're saying about analysts rerating for higher brent crude, but look at united, for instance. they get almost half their sales from overseas. what if the dollar stays strong? crude can still come up. >> on the international, that's the thing that concerns me. several international airlines warn on capacity and earnings. so you have an issue where maybe the domestic ones do okay, but then the problem you have is oil again. let's say oil goes back down. what's the signal that's sending? saying the economy's weeking less people fly. what if oil rips? that's going to be a problem for the airlines. it's just not a great place to get into here. but there is something i would buy somewhat in this space, and that's go-go. they did a deal today, that's a growth area. i like that stock.

>> i think when you've got citigroup saying we're going to see $10 oil and all these other analysts saying $20 oil -- >> that means oil is going up? >> yes. in other words, i said 45 to 60. my word is not any better than any of those folks who said what they said. however, i'm looking at where we bottomed in january, and where i think the upside is, melissa. i think lower for longer on energy is going to feed these guys like crazy. have they corrected enough? perhaps not. you know, for you to jump in on some of these. but i like the airlines. i do like them to dip a little bit more. no one buys more petroleum products other than u.s. military than delta airlines, nobody. these guys benefit in a very big way. many of these guys, like for instance delta, only has about 20% hedges on. so in other words, when they consolidate, when crude oil and jet fuel consolidates down here at very low prices for them, i think that's just a wind fall. but you can wait.

you can be patient. wait for there to be blood in the streets. as tim said, a one or two-day selloff to take them back to where they're only up 5% or 6%, other than american, which is up a lot more than that. i don't think that's an opportunity. >> what happened to the concerns that airlines are going to be saving on jet fuel. therefore misspending and going back to their own drunken sailor spending kind of ways. >> that was the conventional wisdom. the smartest guys in the space. made a big note, saying hey, if you see these guys start to overspend, you'll realize the capital discipline story has gone bye-bye. first of all, we're at $60 oil here. let's be clear. does anybody think we're going to be at $60 oil next year? i don't. i think a lot of people probably do. i think these guys in the short run have shown some discipline, but if you get to a place where you start to see the margins slip, and that's where you have to get back to. get back to fundamentals, people. this to me is the best one on fundamentals. alaska air. these are the places i would be leaning on the long side, even on the face of this because

they're very well-run companies. >> okay, i want specific names. >> i love american airlines because of the consolidation play, because of what's just happened with the u.s. air merging in there. that takes a way to play out. i fly every week. so i know it's not fully integrated yet. but as it becomes fully integrated, the savings here just like you made at continental, this is going to do the same. >> i would add not an airline, but fedex. this thing doubled in performance. it was a monster last year, but it's actually made a series of lower lows since the highs late last year. this is a company that's been doing all things right. i think that ups pre-announcement. this is one they reported on march 18th. i have my eye on it here. it's got waning momentum. the earnings estimate for the full year and what people think is cheap relative to ups may not be so if they guide down for the full year. >> check out the move of mcdonald's. the dow up 4%.

let's bring in the managing director nicole miller regan. she's got a buy rating on the stock. thanks for joining us. what do you think is behind that 4% move? >> honestly, i just think we're finding a bottom in the stock. there's been no fundamental change at this point. >> so what do you think people are hoping to happen? is it going to be store closures as well as improvements to the menu? >> great question. i think that investors are just making sure that the balance sheet is strong enough. i think that's why we found the bottom of the stock. fundamentally, i think that they are looking to see if something happens between the franchise and company-owned model. but i think the answer is technology. i think that's what they should be looking for. consumer phasing technology at a much faster pace than it is. >> have you gotten a clear game plan from the new ceo as to what the next steps are for mcdonald's?

>> no, but thinking about the role he played in the company to date, i think that you're looking at, you know, somebody that's going to try to get menu and marketing back on track. that's his know-how, his field of expertise. >> do you think they would be willing to do an acquisition? >> i'm not sure how that would play in, frankly. i'm not sure how that would, you know, benefit them immediately. i think that it's not that they have to take out, you know, some level of competition. frankly, they just have to stop donating market share. they have to get back to, you know, baseline comps, you know, and i think that's more about the technology initiative and how you connect with today's customer. >> okay, we're going to leave it there. thanks for calling in, we appreciate it. i like that phrase donating market share. because that's exactly what has happened in this space. >> i'm long the name. i think this is a major inflection point for the company. don thompson a great guy,

everybody loved him, but he did nothing wrong. i talked to two franchise holders that are thrilled with steve easterbrook. the news yesterday that came out late said that they're going to open up 100 shares. the sense is that they're already looking at where they can actually pull back. they're not going to grow as fast in china and russia, two trouble spots for the company. they're already doing better in europe. this guy was mr. europe for the company. i think it's a great time to be looking at slower gna. this is a company with enormous value. this is what shareholders want. this is a big day. >> there was a note yesterday that was also bullish of the stock saying mcdonald's planned to sell more restaurants and franchises and also take on debt in order to buy back stock. >> this goes to the point there's just so many things they can do here, that's what investors are trading on this hope. whether they convert some real estate, this stock has found a floor here. i think if you want to take -- nicole talked a little bit about

technology. take a look at whatdom's pizza has done. you have the ceo of red robin gr m -- gourmet on. that's all mcdonald's has to do is have some kind of technology strategy. so whether it works in the long run, who knows? but the stock was so bad, it's got to be good at this point. >> you're long. you like? yes or no. buy, hold, or sell. >> i do like it. there was unusual call activity. a very large role. tens of thousands of contracts to the 95 strike and march. those are up 400% now just in the last few days. >> and you liked it. >> you could see that breakout. soaring in the after-hours session on earnings. josh lipton is in san jose with the latest. josh? >> well, melissa, what sales force reported was 14 cents on 1.44 billion. that was smack in line with what the street expected, but sales force also saying deferred

revenue, 3.3 billion that was up 32% year over year. it was better than expected. bookings also better than expected. sales force saying it surpassed five billion in annual revenue, faster than any other enterprise software company. also lifting, by the way, its revenue guidance. that conference call is just getting started. i'll be on that call and bring you guys headlines. >> i'm going to let dan nathan take his little victory lap. not too long ago he stood by the smart board and said amongst the reasons is metallica. >> it was pretty unscientific. >> enter sandman? >> we highlighted that they paid probably close to a million dollars to have metallica at an event. you don't book metallica at an employee event if you're going to lay an egg a couple days later. we just talked about mcdonald's. this stock has been between 55

and 65 for a year now. you are above the highs here. and there is no overhead resistance here. >> well, listen, the breakouts have been working. and they worked with great stories, like these guys have this massive secular trend here. so i do not think you faded. >> we'll have more throughout the hour. by the way, jim cramer's got an exclusive with the ceo on "mad money." coming up next, we've got your dose of stock therapy on one biotech name that's gained more than 140% since going public. what might it mean for the health of the market as a whole? we take a deeper dive ahead. plus, the inside scoop on how uber riders can receive free stays at some of the world's top hotels. we've got the details next.

kate rogers with the details. >> down about one and a half percent in after hours trading. the parent company of victoria's secret, bath and body works, providing profit guidance that was below expectations. the company did beat fourth quarter forecast for profits, which came in above expectations as well as revenue.

>> there are high barriers to entry. it's a highly fragmented industry. they are growing internationally. you can't not deliver on numbers like this and expect the stock not to go down. >> that brings us to our retail round-up, kicking off top trades. first up, target on top of the bottom line with sales exceeding expectations. the stock fell slightly on light guidance. plus, tjx companies profit jumping on its earnings report. the retailer also followed wal-mart's leap in raising wages. we are awaiting earnings from kohl's and the gap tomorrow. >> we kind of got the sense that some things were better. we know they decided to leave canada high and dry. i don't think there's anything wrong that happens today. somewhat skurve and they beat that. very interesting, the stock's up 38%. i think you still have very good

first half comps. i stay long on the name. it's a broken stock that i think is on the road to repair. >> i would also be worried about target. it's up 38% since may. and also, the comps are going to get harder. >> considerably tougher. they're doing a lot more right than they are doing things wrong. >> i think this is one of those -- i mean, if i were dana kelsey -- >> whoa. >> if you're a retail analyst -- >> i would be putting this one to a hold, rather than to a buy. >> that was obviously great news for the company. traded higher, the market was down a little bit, but this does not break out very well at all. i would call it a failed breakout. if anything, i'd be taking profits. >> big analyst day march 3rd. next up, starwood hotels is partnering with uber. >> this has to be worth at least a billion dollars.

i mean, i can't imagine it would be worth less than that. that being said, is this jet? legitimizing certain aspects, of course it is. it's good news for uber. i think it's inconsequential for starwood. you can link any purchase to any sort of program. >> doesn't it give them some sort of share? >> agreed. the only thing i'd say about starwood is they don't report in april. but they get probably 75% of their sales from overseas. this is a stock that's just gone from 70 to 80. i don't think you chase this one here. if anything, bk was just talking about some of these airlines overseas having some pressure with the strong dollar. these guys can feel that pressure, too. >> next up, american express popping today. finally some good news for the company as it announces an interest rate increase for some u.s. carders. it is staggering how low their interest rate was. >> this was the first, maybe of many. like you said, finally some good news. this stock has just gotten hammered over the last couple

weeks on bad news after bad news. so perhaps this is the catalyst that puts it near the bottom. i'm not sure this is the catalyst that you buy for the next year. the short-term bottom, and it is in here for american express. it's a wait and see for me. it's a wait and see how their customers respond. it's a wait and see to me how their international business does. those are still things that are hanging up there. coming up, don't look now, but blackberry gaining 2% on the back of a key deal with google, and ahead of the classic launch tomorrow. our own bk is buying into this move. later, the five reasons to buy apple right now. we've got a top analyst laying out the full case for the company. the highest market cap in the world. stay tuned. want more "fast money"? now you can catch full episodes any time, anywhere on your mobile device, any time. >> and i do mean everywhere. >> just go to cnbc.com/livetv to watch "fast money" on your smart phone, your tablet, or your

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news alert here on united. phil lebeau in chicago with the details. >> melissa, we have confirmed a story that's been getting a little bit of attention within the last hour regarding united airlines and a memo that was sent out to all of its pilots. this was sent out on january 9th under the heading "significant safety concerns." essentially, the memo said that the pilots need to make sure that they are complying with cockpit protocol, and it was sent after four incidents prior to january 9th. those four separate safety events and near misses according to the memo. the memo then guess on to tell pilots, look, you have got to make sure that you're following all of the procedures. one of the incidents included a plane whose pilot had to execute an emergency pull-up maneuver to avoid crashing into the ground. we reached out and talked with united airlines this afternoon. the company issuing a statement

saying, as part of our commitment to safety, we constantly monitor flight operations data and regularly communicate the findings with our pilots. our proactive approach to safety is in line with the faa's safety management system. so united confirming that yes, it did send out this memo basically saying everybody read this, because the cockpit needs to be -- the compliance in the cockpit needs to be front and center in terms of all pilots. it was sent out on january 9th. back to you. >> thank you very much, phil lebeau. time now for a new weekly biotech segment. stock therapy, soaring since january 30th. let's bring in meg with the details. we already knew this could be a very big year. does this set the stage for more gains here? >> that's a really good question. so this company, as you mentioned, doubled on its first day of trading and it's risen since then. what i'm hearing from investors is that this is one of the few really, really strong companies that we've seen of 2015 so far.

there have been others, but this is one of the strongest. and it's interesting to look at the biotech ipo market the last few years. 2014 and 2013 have been so strong. but focusing on sparks, it's in an area known as gene therapy. this is a really new area of medicine and drug development. what it aims to do -- and this company's ticker is once. it's trying to treat and potentially cure disease with one treatment. using a viral vector, basically using a manipulated virus to deliver healthy genes to fix a genetic problem. what this company's focusing on are inherited blindness disorders. so what they've been able to show is they've taken kids who have to be in braille classrooms and they've been able to improve their eyesight enough so they can be in regular-sighted classrooms. they're having amazing results. that's why people like this so much. the reason they're focusing on it is they just started getting analyst negotiations. price target is $76.

people think this has more room to run potentially. they've got phase three data coming in the second half of this year and breakthrough therapy at the fda. so potentially an expedited review process. they could be the first gene therapy products on the market in the united states if they're successful. >> is this talked about as an acquisition candidate? >> definitely. i actually talked with the ceo today. and they are really building for the long term. they have a super, super interesting history. a big chunk of the company is owned by the children's hospital of pennsylvania, which is really involved in the technology. a lot of their researchers are part of this company. so they're trying to build for the long-term. >> what's the market cap? >> a little over a billion dollars now. so it's a pretty big company that just went public and they're really, really young. >> yeah. in terms of next week, you're looking at merck and some pepsi data? >> right, so this could be a little further out than next week. initially, somebody was saying these were imminent data. we know that gilead and advi are dominating this huge pepsi market right now, but merck is coming up with some phase three data. we should expect that in the

next two months. a single pill once a day could compete with these two. what analysts are telling me is that merck could capture 20% of the market, but these data are really important because the fda recently said it might rescind merck's breakthrough therapy designation because this market is so well-served by these other therapies. so we need to see these data be really strong. what sun trust has told me is that they need to show 95% to be approved by the fda. >> is suntrust expecting that? >> they're pretty optimistic about this. john boris said because the company said they may present these data in april, they're looking pretty good. >> this regimen looks more convenient than abbvie's margin. >> karen says it all the time. she looks at the etfs.

with the market cap for this brand-new company, it's really hard. they have no sales. if the data doesn't work, the thing could be cut in half like that. to me, that's not my cup of tea. you have to know a whole heck of a lot about these therapies and what the potential is. so i'd stick with like the ivb. >> dan's right as far as safety. if they have a big hit, of course they're going to explode to the upside. that's a given. but bluebird bioscience, or whatever, i like both of those a lot. tend to get a lot of speculation in those. i'm not at either one right now. >> i would take a look at merck. it's trading around $58 here. with some catalysts coming up. it's not going to be one of those doubles. but it's a little bit safer, too, right? 58 has really been a pivot point here. so you have a defined area where you can get out.

that to me is a great trade. >> it's a place where the pipeline is still -- this is the whole point. i'm neutral. >> thanks for stopping by. coming up next, as we continue to march towards nasdaq 5,000, one guy lays out key reasons of why apple has more. and who lit up the options today. much more "fast" straight ahead.

still ahead, apple, down day today, but that doesn't stop one guest from laying out his five reasons for why you should buy the tech titan right now. plus, blackberry soaring today as the company prepares its classic phone launch tomorrow. our own bk made another move on the stock today. a trade update ahead. the refiner that had dr. j doing a double take. but first, we start with apple taking a pause from its huge run over the past month, trading lower by more than 2%. the company getting hit with a $530 million fine relating to patent infringements from its itunes software. reuters reporting today that

china has dropped apple from its approved state purchase list. despite today's drop, our next guest says apple still has more room to climb. let's bring in jim suba. it's always great to see you. you've got five reasons. what's the real driver? >> believe it or not, it's innovation. the company has to continue to innovate. so far, it's mostly been on the consumer side. apple pay, apple watch, and even potentially someday apple car going into the car and the auto sector. their available market is broadening. we see five reasons the stock can keep going higher. >> so you say keep going higher. your price target off of today's close implies just the 5% increase. so that's not a whole lot -- i mean, for five reasons, you're only getting a percent for each reason, jim. >> oh. so there. >> that was pretty harsh. let's be honest, last time i was on the show people were calling me nuts for having too high of a target price.

it's a great problem to have. we are assessing true demand. iphone 6 products continue to sell well. importantly, the gross margin and the higher gigabyte memory content is higher and higher. as long as earnings keep going higher and this continue continues to gain share, the stock is beginning to go higher. >> so of the five reasons, what reasons do you have actually in your model? what are reasons you can actually put in and say this is going to hit the bottom line on this day? >> great question. we call it device acceleration. carriers are making it easier than ever to trade in your old phone to get a new one. you don't have to wait two years anymore. you can get it faster than ever. we do know that apple pay, we have nothing in our model for apple pay. it's only available in the united states. the listeners here know about it. in canada, europe, and asia, it's not there yet. we think it's really going to open up a new world of opportunity for apple. >> to be fair, every percent is

a billion dollars in market cap. >> that's true. >> it's interesting, the stock melted up in the last couple weeks. this high just above 133. what strikes me is that the i-car, we know nothing about it. we will not know anything about it for a very long time unless they make an acquisition or something. but is it odd that they've just totally disregarded the living rom for your garage? you talk about innovation, that's your number one rcheason. there's so much promise, they don't talk about that anymore. it seems odd and frothy to me. >> i think they tried with apple tv and it caught on a little bit, but it hasn't been really successful. it comes back down to the user experience of apps. do you need an app that's unique to your home? we don't think so. but within your phone and operating system, and now bringing it from consumer to enterprise, we think that could really open things up. so we think they're looking at a bigger available market. you mentioned the car. i'm not sure they'll be building cars, but the infotainment

system in the car has been so slow to innovate. voice recognition, mapping systems, realtime traffic has been so slow. apple innovates, apple disrupts. we think that simply taking it home is an additional area. >> let me push back a little bit about how easy the operators are making it. i'm long apple. i've been long for a long time. i'm okay at this valuation. but it to me seems like we pulled forward so many upgrades. in the analyst company now is upgrading like crazy because in some sense they've been forced to upgrade on future growth and they're doing it now. as an investor, it tells me the momentum in a lot of this stuff is already in the price. and when you have the upgrade cycle that was so intense, it tells me the back half of 2016 may be a very difficult time for this cycle. >> everything you laid out is absolutely true. we do know, however, even with the melt-up, it's still trading at around 14 times earnings. if you take out all that cash, it's trading at 12 times earnings. it's really not that expensive.

that being said, we do know that the units continue to grow higher. people continue to buy it. they have about 20% market share. we think there's still more upside there. unit estimates continue to go higher. that's the trend we like to see. and if estimates keep going higher, we think the stock keeps going higher. >> you going to raise your price target? >> we have to see how things sell. apple watch hasn't even launched yet. i'm very much looking forward to testing that device. how is the battery life, built in gps or not. that battery life has to be really strong. there's some things in the future. we want to see how they sell. >> okay. let's switch gears and talk ibm. >> great timing on your question. we do note that apple linked a partnership with ibm back in june. we want to hear about apple going into the enterprise in conjunction with ibm. we also want to hear more about watson. the jeopardy star.

can ibm monetize that or not? we're still kind of skeptical, but we're looking for some signs. >> you've got a neutral on the stock, correct? >> we do. >> which almost makes you positive. with the sentiment that there is. >> good point, but if you roll back the clock, in april we downgraded it from a bye. the stock was around $199. >> jim, good to see you, thank you. jim suva of citi. we were talking about ibm casually before the show. could not find a single person here who was positive this stock. why not? something has to happen, right? >> right. they haven't performed. it's a fabulous device. and yes, it is significantly smaller than when it was on jeopardy. they can basically put it in the size of a laptop these days practically. but whether or not they can monetize that is what remains. >> to me, watson is the story with ibm. and the question is can they

monetize. >> elementary. >> funny guy. you should use that to make a living. the problem is, if that doesn't work, then all they have is they're buying back stock, hollowing out the rest of the company. is it so bad it's good? maybe. but i don't think it's a fantastic buy here. >> apple? >> apple's beginning to go back to the breakout level. i think it just got a little overexcited. i am the only one on the planet. i think the watch is going to demonstrate that they're actually not innovating. i think we're going to be in the first pitch of the first inning of wearables and i think it's going to be a very long game. but i don't think they're going to have a hit with the watch in april. >> don't agree with dan, but i do think you stay in this name until fiscal 2q. we have capital, financial engineering, and we have one more quarter of this cycle before i get worried. >> let's stick with the tech trade here. we've got a trade update on blackber blackberry. you've been trafficking in this

thing for quite some time. >> yes. i've been long, whether it be the stock or the calls. i was long a call spread. and i had actually covered the short side of that call spread. but this morning, i actually bought the stock. the reason why is my calls expire at the end of march. i want exposure beyond that. we just had analysts on talking about the infotainment center. a lot of people think that's the crown jewel of the company. they don't break out revenues, so it's hard to get an idea of how big that is, but it's in every car out there. not only that, look at the deal that they did today. it's on the enterprise side. apple wants to get into the enterprise side. they have the premier product. even though there's been takeout rumors and it's been $12, $13, i think if they can get this part of the company growing and start to do more of these deals, i think it's not a problem at all.

>> so it's not the unvailing of the classic. >> it's not. i would buy more if they got rid of their hand sets altogether. >> i would say it really is about the sum of the parts. someone does see value in that. this company doesn't stay independent forever. i think you buy. >> let's not forget, there were those rumors that samsung were going to buy them. so the deal today with android, that almost reinforces some of it. i'm actually with bk. i'm on call spreads out to june. my top -- i'm between 11 and 15. >> you said i'm actually with him. as if that's crazy. >> well, i meant that. >> yeah. time now for "pops & drops." a pop up seven%. >> this is a name no one's wanted to be with. they a -- announced numbers that were very low.

>> big ten% drop because they have weak eps. they had revenue and guidance. none of it was good. and this is one of them that's really struggling in the space. i'd stay away. >> pop for first solar, up 7%. >> up 7% today after being up 10% yesterday after that sun power and yield co announcement. it's going to trade on those yield assets. i just have a hard time chasing a stock that goes up like this 20% that quickly. >> all right. pop for hertz global. >> actually, there was bad news on this this morning. gap lower and traded higher. so in this particular case, you know, i don't like the stock, but i don't think it can be shorted here. i think when something happens like that where you have bad news, good story, good price action, you might want to have it for a trade, but you definitely don't want to be short. >> we do have breaking news on morgan stanley. kate rogers back at headquarters

with the details. >> we're just getting this. morgan stanley has reached an agreement in principle with the department of justice over mortgage-backed securities for $2.6 billion. again, this is an agreement in principle. it will dilute by $1.25. they have to finalize this. >> thank you very much. a little bit of a pop in the after hours session, which is surprising. every single one of these settlements, another off the sector. >> and these guys, they probably were most scared by the justice department five years ago. they totally changed their business model. very profitable. stable, sticky high margin businesses. i think morgan stanley as a stock is very interesting. somewhere around $36. >> favorite financial, dr. j. >> bank of america merrill, because of all those parts put together. the merrill lynch side as well as bank of america. morgan stanley, i-like that, too.

coming up, bulls are chasing one stock. and the trade on the name right after the break. plus, salesforce.com spiking. the final check on the stock. we hear from the latest after the break.

sales force moving even higher in the after hours session, this after matching on earnings and revenue for the fourth quarter. the company also on its guidance. take a listen to what jim cramer had to say about his business in europe. >> the european numbers are way beyond everybody's expectation, jim. and you can see that some of our largest deals for the quarter came out of europe. not just amazing deals in france and certainly we have some of those with things we've been doing with schneider and axa and others, but just take a look at that german connection. and this was sales force and microsoft partnering together to show what the power is of office 365 and sales force as one system. >> it is amazing to hear him talk about how things are so great in europe. just yesterday, we were hearing about how things were so bad in europe for hewlett-packard.

>> by the way, europe's in the middle of their earnings season and things are much better, especially for cyclicals. if you talk about crm, interesting because their deals are becoming bigger and more complex and stickier. they get the sales cloud, they have the service cloud. i think it's a very interesting name. it's not cheap, but they do have a great business. >> the breakout is extreme. so there will be a lot of folks that are chasing it here, too. a lot of folks that had been betting against it, as always happens in such situations. so tomorrow you'll get a great chance, if you're somebody that wants to take some profits, to do it through the high. >> so you wouldn't buy it? >> no. >> you? >> i'd actually rather go microsoft. just because microsoft has been knocked down. we just heard that that's a big part of their sticking strategy that tim just talked about. so i'd much rather be in microsoft. >> be sure to catch the sales force ceo for the full interview on "mad money," that starts at the top of the hour with jim. time for unusual activity. dr. j has spotted bullish activity in an oil refinery,

holly frontier. >> they were buying the 45 calls in march. short period of time to get to that one. but in april, they're buying the 43. stocks at just over $42 a share. it gets through there and basically trades 45. there's nothing stopping it on the charts, i don't believe, until 50. so a lot of people were piling in here. almost eight times the normal volume of calls turning over in the march and april timeframe options. in other words, they're not trading the februarys that are expiring right here. they're basically out there in the future. i was right there with them. stock and calls. >> do you agree -- do you think this extrapolates across the refiners? we've seen some huge runs. >> i'm also long western refining. bought that one. it's part of a portfolio that i have for the halftime show as well. i think their margins are going to be great. so i like both of these two stocks, wnr and hfc. still ahead, lumber liquidators getting whacked in today's trade after its earnings

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shares of lumber liquidators plunging today after the company reported an earnings miss. the retailer also revealing on a conference call it would be the subject of a negative profile in an upcoming episode of "60 minutes." what did you see? >> options volume ran ten times average daily volume. like you said, the implied move into this morning's earnings, especially after the positive results this week had investors thinking upwards, but here's the thing, when the stock was all the way towards the lows at 52.5. a trader sold out of some puts at about $8 and bought to open 500 of the may 55 calls for 550, taking a bullish view, it appeared to be. when you look at the chart and the devastation that was done in this thing, here's the one.

this is what i was looking at yesterday before the earnings. it was abouti ibutting up again huge gap from july. the stock has really high interest. i mean, this selloff today is massive, and it actually puts lower lows into effect. the way i see it, at least from the chart. here's a five-year. this takes you all the way back to these levels here. so who knows what's going on with this 60 minutes expose on sunday. but this is implied volatility. this is the price of option. it's about 75%. that's mass iively high. for those looking to make bets, it's a really hard way to make money with long premium options with implied volatility option prices this high. >> it's never a good thing when 60 minutes is investigating your business, but even putting that aside. the commentary we heard today from lowe's on the conference kay, and then we got really great earnings on the conference call. they said everything from low interest rates all the way to

rising home prices. they're doing flooring also. they're practically at 52-week highs. you were in lumber liquidators at one point in time, weren't you? >> at one point in time. i talked to dan nathan about it. they were only down about 2% despite some pretty awful numbers. but then i think people really got their senses kicked in and started selling. i don't know if the selling stops until we get closer to the "60 minutes" piece. >> yeah. >> that's the problem here. >> like you said, mohawk, that type of thing. they stay away from 60 minutes. watch the show. >> if i look at the spacing i actually like lowe's relative value to home depot. i think they have a very nice dip yield. a very good free cap yield.

that to me is watching tv. >> for more options action, check out the live show at 5:30 p.m. eastern time on friday. let's get to some tweets. this one's for tim. peter asks, is baba a buy now, or do you prefer yahoo? >> is baba a buy now, do i prefer yahoo? baba is a buy, i think. i would stop myself at 80. i think there's too much volatility there. i think if you look at the valuations, come back to the reasonable price, 45 times, people very worried about the regulator here. therefore back to yahoo. yahoo has been punished. i think yahoo is a little more defensive. the tax schemes are things people don't think can happen. yahoo is probably better. >> time to sell after today's pop? >> it's a huge pop here. it depends where you bought it, right? >> so guy adami.

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as you may have noticed, karen isn't here, but we wanted to wish her a very special happy birthday. she's throwing a very exclusive birthday party. from what we understand it's just her and a special guest. jamie dimon. >> does he know that? >> happy birthday, karen. >> does mrs. dimon know that? >> time for the final trade. >> this is a breakout for mcdonald's. news-wise, no. it has broken. >> dan nathan. >> macy's here at six and a half. i think a break above 65. the previous highs at 68. >> beakers? >> i think the financials are a little troubled here. i would sell them. maybe not short them, but definitely take some profit. >> dr. j. >> simon property group. we saw unusual activity in this name as well today. i bought it. i believe the stock could break

up through $200 a share, and it's a 3% dividend yield. >> karen, i know you're not watching, but happy birthday anyway. i'm melissa lee. thanks for watching. see you back here tomorrow. meantime, "mad money" with jim cramer, that agains right now. make you money. i'm here to level the playing field for all investors. i promise to help you find it. "mad money" starts now. hey, i'm cramer, welcome to "mad money." welcome to crimerica, i am trying to make you money, my job is not just to educate you but entertain you, tweet me @jimcramer. allow me to introduce to you the concept of