hey hey there. we're coming live from the nasdaq market and crazy day for stocks. guys behind me going to make sense of it all. first here is what is coming up. when was the last time? >> well, it might be time to go back because the stocks hit the jackpot today. we have a trade that could beat the house. we will explain. plus, breakout. >> the cube you put in hot water? >> no, the gold bars that you put in the bank because gold is setting up for a generational trade. we will break it down. how would you like to buy home depot for just a buck? the action begins right now. i think most people that follow stocks have the same

question. what the he can happened today. mike, turn to you first. >> very few drug addicts give it up voluntarily. when someone says you don't have to give it up this week, that's what they're saying. if you're looking at the market now, that's nuts. that's what it is. >> bad jobs mean that is the fed is on hold for longer. >> if you look at the areas that did so well and not so hot, that's what you're seeing. the market really rallied and the area that was doing well on the back of the notion, financials did not do as well as everything else. that's clearly the only thing that we can have. >> and regional banks did very

poorly. what did that reversal look like to you? >> i think what we really know is that there was net damage done can. the russell under cut and the health care sector did the low and so on and so. it's not a particularly good thing to rebound. you want to get this out of the way and go down and have some pain. the pact fact that we keep on bouncing back is the prone. >> yeah, the last couple of days are better. it's good to talk about the damage and the market leader. most of the bank stocks broke the lows from august 24th. that damage and stuff that we saw over the last week and a

half, i don't think that you can have the reversals off of that damage. to me we were just talking about it before. i think on the desk we have been talking about it for weeks now that you want to be more defensive and high out of the evaluation and growth. you got a great call and sticking with the things that are crowd and the netflix and facebook and those things. they are. that's the last battle fought in a way. to me i think that if you take those out, there's a lot of really bad stuff going on. >> a will the of them were losers off the bottom. >> yeah, so dan you're taking a look at? >> staples and the s&p is the xlp. i think that we have a one year chart here. it was trading very well for the better part of the year. f it was ranged bound like the s&p. right now it's only six percent than it made earlier had in the

year. i believe that they will get to the high growth stocks. i believe that we're going break the august low es at some point. i don't think what happened today is healthy. i think that you want to move to more defensive stocks. procter & gamble is down 20 percent. i think that some of that maybe discounted. today this is really simple. i want to make a point. we're the options joe here. the xlp is low relatively to a lot of the other sector eff. i looked out to november and when the stock was 47 or 45, you could buy the november 47 call for $1.45. your break even is $48.45.

i think that it can make it to highs, if the market goes higher or stays around. there's a lot going on and the options are not expensive, and you have a risk reward here. >> i agree that the options are cheap. i don't know that the stocks that are with this are particularly cheap. the only thing that could support them is that this is potentially help to weaken the dollar. we're big multinationals and coke that's in there and tobacco stocks, these are stocks that have declining revenue have eps and trading at 19 and 20 and some cases 22 earnings. that does not seem cheap. if i was going play it and using the calls would be the only way i was interested in doing this. >> last week we were looking -- >> yeah, to have the cake and eat it too. one thing that's important is a rolling three or four month

basis and the staples are performing and what's important is that if you look at the relatively down trend line, they're just starting to make new relative highs above that. it's important. i would concur here. >> you love it? >> how about that. >> concurring for him is love. let's move on to the hot comadty. that's gold. >> hey, that right melissa. we did see a $23 pop after the dispinting jobs number. we probably won't get the federate hike this year. a fed is good for gold prices. having said that it was about a two percent move on the day. we were watching the move that we saw it, and we did not quit it, it there. it was the first possibitive da that we saw.

remember for the month it's down nearly four percent and having said that if gold finishes, it's the third straight year. we have not seen a record like that since 1997. last point to make sure and the trading range is 1,100 to 1150. people that i speak to say to test it, but there's not enough momentum to breakout. they're looking to trade the moves for short term. back to you. >> thank you. which way will the gold break. we turn to the chat master. >> well, let's try to figure it out together. gold, this is a de tisastdisast. if you were to find a down trend and move from the top left to right. if you were to draw a line along the peeks of 2011, we flirted with with the lines three or

four times and closed on it. any kind of o strength we will do one thing. it will start to move above for three years. i want to point out where this is happening on the long term chart. here is the long term chart. this is very important. the low of 257 and the high of 1920 and the midpoint for a 50 percent retracement is exactly where we are now on this line, and so if this is going to start to stabilize here and it looks that way, we closed obviously that's the absolute low, and we closed higher. we're at is 1136. if this serves the purpose and we tastart to move above, that' not random. it starts to move as it reaches the 50 percent trace level. let's talk about the gold minorings. now gold is only half way back from the lows and gold minors are all the way back.

in fact this is the index, and we're at the all-time lows. put them together and still a 50 percent and gold minors at an all-time low and we're going try to play this and make a bet. here is our eff. it's liquid and you can trade it. it closed at 14 and change just to get to the down trend line. this would take us above the weekly and a move to around 17. take a shot here. >> okay. move higher according to carter. you're trading that mike, what is your trade? >> yeah, this is a place that i have said that i am not a gold bug but the value is at the lower end of the range. i would not like to reach out and buy the stock. you have to use the options. the slp options are not that cheap because the sector is so volatile and a lot of them are

held at leverage. you can spend 75 cents for that. the foot spreads are more expensive than the gds calls and an indication that there might be a wash out in the sector. >> yeah, that's the way to play. if i go and look at the chart over the last year alone, there's been three rallies of 20 percent from a trough to a peace. they're not being greedy and the move is back to the down trend. if you this got there, this would be a great stop to lay it out on the short side. i like the risk plays when you're seeing some squeezing action in the sectors that are the sentiment is just who bhorr. >> carter? >> well with, if you get it wrong, you cut the losses. if you get it wrong, it's going to muttle. if it's right, make the 15 or

20 percent and get out. >> okay. got a question out there, send a question to option action. if it's civil, we may read it on-a on-air. we have the hottest options and news and exclusive trade, so check it out. here is what is coming up next. how would you like to protect your apple stock for next to nothing? we will show you how. plus. just because something happened in china that could have investors hitting the jackpot. we will tell you that when "options actions" returns. random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.

there's no way to predict that. for all the confidence you need. td ameritrade. you got this. suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid.

ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings.

impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. . . welcome back las vegas sands, wynn resourts seeing a lot today. we're live in la with the story. jan. >> reporter: hey, melissa. same day that we got the numbers, they were terrible. yes, the government is going to help. how? we don't know. it was enough to make everybody happy in the stock market. look at wynn resorts. 16 straight months of decline and lowest take in five years. the good news is the month to month declines are are slowing and momentum was picking up by the end of september. you may recall earlier this week

that he expects the comps to this and that it will bottom and start to turn positive and morning start agrees and a good sign. today the central government's said that china will introduce policies to help stabilize mccows economy. this is fresh off the visit where murray pled the case in person. no details on what the steps could be and whether they will offset the losses cause bid the track down and money landrying and how much cash chinese citizen can with withdrawal while there. for this month october morning star believes there's a 20 percent gain and drop and then down 27 percent. that's terrible but better than the 33 percent drop in september. >> thank you. glass half full. as they points out the government promises, but that's

phlegm >> i don't really see how there going fix this. one thing that i would say is that we are taking a look and we should probably expect gaming revenues to what we see here. that's not going to be close to what they had before, but it could meechb that there could be stabilizati stabilization. >> i mean it's almost does not pass the laugh test. i mean sorry the wins and so it bounces. percents do not mean anything when they're in a violent decline like this. i mean something is wrong. imagine washington is going to step in and help vegas. that's a joke. >> yeah, what i found fascinating is that i remember the report the other day and it was out saying that they were going to do this. the stock went down and what

happened today. what happened today is that, a lot of weirdness. on the markets and a night where they were closed, we saw a lot of adr's go crazy and then so to me what i take away from this is a trader. you want to start to try to find a similar situation and other stock that is have poor sentiment and people throw them out. a couple of ones cat tractor and cap pile cat pile er is one. they're tied to it to the emerging marngts and that sort of thing. if you look at the charts, it's bad news after bad news. could the stocks have the 22 percent in a day, but at some point when you have a turn, it can turn very fast. that's the point that i would take away from this. >> yeah, there's no force to step in and say for cat or joy that we're going help it and the mining. >> yeah, but if they support the core economy and that's the

real-estate boom and that's anot fi filling the house, and if you get the stabilization there, some of the stocks have fallen sharply. at the end of the day what you need to see is for the companies to get to a sustainable level. they can not be off the growth and that's what they have been. that's a bare case for the cat pile -- cat piller. >> well, down to the right. try not to buy stocks in down trend s. they're trying to break them. these are in violent down trends. >> so don't touch? >> no, i wouldn't. it was a apple. we found you a way to save money. we will tell you that when "options actions" returns. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns

like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. i'm here at the td ameritrade trader offices.

ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings.

impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. welcome welcome back. time for the call. first up apple. here s here is what dan said last week. >> if you're worried about a charp sell off, you may want to

think of collaring the stocks. if you owned 100 shares of app ale, you could look out to december and sell the december. 130 call at $1.50, and then you could buy one of the december 100 puts at $2.50. that structure cost you $1. >> good thing that he brought protection. dan, how are you managing the trade? >> well, i am in the mind set that apple is going to be in a range here. i think that you want to mange that short call at some point when it's offered at 30 or 40 cents over the next month or so. reallilely what you want to focus is on the put. the put increased in value by about a dollar over the course of the week. the stock was done a few bucks and the december put was up a dollar. at some point you may want to look at selling a lower one and

then that structure cost you a doctor. if you can sell it, it went out a $1.50. that's how i would mange the trade. you want to hold on to the stock. it's going pay a dividend. you love apple but using the options tactically. >> how does the chart go in. >> well with, charts go good and bad and bold to bear. i was playing this for the breakout and backed away. i am confident if and as things e ter rate, this is going to be better than the market. teaming up for the bet on the home retail er. take a listen. >> this side way action is the set up for another bounce off the line home doe poepot is hig >> yeah, only has to get up about $5 to participate on the upside.

there's a ten percent cushion and that total trade is going to cost you 90 cents. >> okay. starting with carter. >> well with, stay with the trade. >> yeah, i would stay long and one thing that you can consider is adjusting the strikes. we are higher and there are a little bit of profits. >> what are the home builders in general? >> i think that they were selling off and think of a rate increase. they did not catch much of a bid today and the rates lower and a lot lower. the chart looks amaze asking it's in a really nice space so to me could can it have a nikki move and put up an upside about it. it's been basing right there. i am not sure that the housing trade in the u.s. has a lot for legs. coming up next is the final call. here at td ameritrade, they work hard.

wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid.

i'm here at the td ameritrade trader offices.

ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade.

you got this. time for a tweet thomas asked a price of $60 for teva. do i buy with calls? >> yes, like that. it's bounced off the bottom, and i think that's a good trade. >> okay. have you looked at the teva chart lately? >> no. >> you're going lie. >> he was doing well and it collapsed. there's so much vile here. there's no direction. i would say just try something else. >> well, this is the thing if -- it's a situation that you're looking for it to bounce around here. that's when you're going get paid on the trade. that's what you're doing. >> scott asked are you buying long s&p puts ahead to come a

disaster? >> well, i would not be looking to buy for the long run. index, etf options and prices are really high right now. it does not look that high when you're looking at amazon, but it's really high. it's hard to make the money directional here. if you're looking to protect it in the near term, you may want to look to do spreads. buy one and sell another one. >> yeah, that's true. what is happening is that all of this has the panic. they have raced out and that's the reason that the price is as high as tsz. >> time for the final call for the options pit. >> yeah, they can bet on the gold whether you like the minors or gold, take a shot here. >> with as much leverage you want to use it by doing the options, and i like the spreads. >> yeah, i like the defensive stock sectors here and s&p is one. >> a quick programming note

8:00 a.m. monday morning. you won't want to miss that. i am melissa and "options actions" and see you back here on monday for fast money and then for "options actions." the following is an important paid program about humana medicare advantage prescription drug plans. welcome to your medicare your decision, the program that guides you through the medicare options available from humana. there are many different medicare choices available today, but are you sure you have the right medicare plan? are you with the right company? do you wonder if you could save money with a different plan? no matter what medicare coverage you have now, this program will give you the information and facts you need, so you can make a smart decision, based on the plan benefits now available from