mouth. >> art imitating life. thank you for joining us. dennis quaid. all episodes of "the art of more" are available on crackle. that does it for us on "closing bell." crazy hour. "fast money" begins to digest all of it. >> "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square. square shares popping in the first day of trade. another stock is emerging and the real winner on the back of square's debut. >> plus yahoo under fire. one activist investor said the company needs to drop its alibaba spin-off plan. aalso could hasten mar is mayer's exit. >> some traders are betting a few of the biggest deals this year are now toast. we'll tell you why. first breaking news out of d.c.

>> u.s. treasury department has issued a new notice designed to limit the tax benefits of tax inversions. those are corporate transactions which companies inside the united states rebrand themselves and rehead quarter outside the united states for tax purposes. officials saying in a conference call they feel a need to protect the u.s. tax base. they are now taking additional actions today in order to help do that. here is what they say they are going to do. the meat of the proposal is limiting the ability of u.s. companies to combine with foreign entities using a new foreign parent located in a third country, limiting the ability of u.s. companies to inflate the new foreign parents' corporation size, and therefore avoid the 80% ownership rule. also requiring the new foreign parent to be a tax resident of the country where the foreign parent is created or organized. officials on this conference

call said all of these actions will be prospective. they will impact any deals or transactions that happened after today. officials declined to respond to a question how this particular new set of rules and regulations would impact the pending pfizer allergan deal a lot of people have been talking about as something that is a possibility in the coming days. they said this is not targeted at any one particular deal. obviously a move by the department of treasury to limit the tax benefits of those tax inversions that have been so controversial in recent years. >> allergan shares after a 3% decline in the regular session ticking lower. in terms of the deals that happen after today, does that mean deals that are not yet closed -- technically what does that mean? >> talking about transactions. it applies to transactions that

happen after today. i would imagine you have to get a lawyer to tell you the details. i would imagine that means ink signatures that the transaction is closed. >> so it would apply to pfizer/allergan. >> theoretically, absolutely. this seems to be a move by the united states government to protect its own tax base. when you talk to treasury officials, there is a concern the u.s. is bleeding companies overseas. too many companies are taking advantage of this effort to move their paper hat on their heads and declare themselves to be an entity in a foreign country when most of the business remains here in the united states. they feel that's unfair and feel it's a threat to the taxpayer and want to put a stop to it. they can't put a stop to it entirely. they can simply slow the pace and only congress could stop it entirely. congress doesn't seem likely to take any action this year. >> thanks for that update.

we had already seen allergan and pfizer reacting to new guidance coming out from treasury. we have some guidance. >> it's a little fuzzy. i would think it would apply to a deal that has not closed. even when it's signed up but has not closed. you can tell the way allergan is trading, $380 deal, stock over $300, that tells you there is a big amount of uncertainty in this deal. we saw that last year. it was astrazeneca, i think. >> this could set up well for pfizer. they feel confident, they want to get in this botox cycle here. pfizer could set up as a good trade. down about 12.5%. to me i authentic you see $31 in the next couple of days in pfizer, i think you buy pfizer no matter what happens.

>> really? there is an article on reuters today citing sources pfizer was trying to negotiate a break-up fee about 2% to 3%, which is high considering the regulatory risk here. >> i don't know does it preclude allergan buying pfizer? the only way to own it is for this pfizer deal. remember in august, when the valeant thing happened, allergan traded down $250. we talked then how they were mispricing the stock. you had the subsequent rally north of $320. i think here at $295, you have to own allergan just on allergan's ability to do well alone. >> for me, i go bigger picture. part of the driver of this bull market is m&a. this is one kind of crumble in that pillar here, crack in that pillar that maybe you are not

going to get as much m&a. when you couple that with the fact some of the bond deals that are behind these m&a deals are not doing as well as everybody would like them to do then you start to say, wait a second. maybe m&a isn't going to be a driver. if i had to buy one of these, i probably would buy pfizer. that is probably more for the dividend. >> a lot of the target share prices are trading at a discount to the announced deal price. much more on that side of the m&a story. let's continue with the health care side of the story. that was the big news today. unitedhealth dealing a blow to the affordable health care act after warning it may stop offering insurance plans to individuals of public exchanges which could have huge ripple effects a. they said we cannot continue to participate in the plan if we continue to sustain losses. 2017 moving out of these exchanges. >> unh had this massive move today. it stopped on a dime at $110 in massive volume. when you look at this just

technically, i don't know a lot about the business here. when you have a company say we cannot maintain this course of losses and in policy, i'm looking at $110 as a big level on volume. it held here today. i don't think you take a shot here. gift to see it hold a little bit because the news flow will continue to be dynamic. >> you saw the insurers move lower but the hospital stocks move lower, as well. how do you think about the ripple effects of something like that? >> sadly, i feel them directly. we are long anthem many. i think it was overdone. united came in after everyone else. there is the theory they had to price it aggressively to get people away from their anthem or whoever. i think it was very overdone in anthem, very overdone in molina. i don't expect it to bounce back

tomorrow. i like them both here. they settle out the next day or two, i like them both. >> august 24th where every stock made crazy stupid lows. you back out those lows. i think it was $95 for unh but it closed at $110.63. here we are at basically $110.68 having traded down to $110 on three or four times normal volume. trading patternwise, it does not look good. it's been rolling over since july. you've got to give it a cup of days. i would rather buy it if it can recapture $115. >> the other interesting dynamic is the number of mergers that could be happening that are announced. anthem, cigna, humana and perhaps these companies don't have the luxury of saying like unh we are going to back out. they want these deals to be approved. that means they may have to go through it.

>> the bigger picture is saying the hospital stocks. guy mentioned this, they got crushed today. bigger picture what this is saying is hoep stocks, biotechs aren't going to be able to charge what they used to charge. they got these big boosts. they figured they can charge everything. now maybe that's changing. for me, i go to biotechs. biotechs were terrible today. look at ibb. i would sell that here. >> all this is related, all this falls under xlb or etf that tracks the health care sector. all these drug sectors are under pressure. what is going on here? >> the health care select etf, you have johnson johnson, which is in there amgen and biogen and pfizer. you have unh. i like to trade this one. it feels like a break of $70. you may see the mid $60s

quickly. there is so much bad news across this space. it's one thing to say that is a one-off, pfizer down 15%. the space in general i think has lower lows. if you see xlb below $70, press it down to $60s. >> juxtapose what dan said against an s&p. either all these sectors are dirt cheap or the s&p got ahead of itself. i thought it was the latter, but the resilience of the broader market is astounding. >> nike making waves in the after-hours session. shares rallying after the apparel giant announced a $12 billion buyback program and 14% increase in its quarterly dividend. plus a two-for-one stock split. sam poser joins us on the fast line. great to have you with us. how do you take this? is this a reason to buy nike? >> i think it's sort of like the way the swoosh is the bonus on

how well they make their product. they have so many good things going on. they talked about how strong their business was, $50 billion by 2020. revenue about 10%. this is saying they've got strength up their sleeve. i think you'll see that momentum go into next year. especially into the olympics. good news is their competitors are doing exceptionally well, too, which keeps the whole athletic apparel and foot wear space cooking. >> we've seen slowdown on the stock for under armour. are they losing momentum? is nike taking back share? what do you think is going on there? >> under armour is so strong, i think it's just a long-term big play. i think under armour is doing incredibly well at the same time. i think under armour said they are looking for a 25% over the

next ten years. i think it's taking a rest here. nike does better when everyone else does better. i think adidas is starting to get better. i don't think one takes from the other. >> the last few quarters for nike can't dispute it, they've been fantastic. what valuation does it become just a no touch? i think it's trading close to 26 times forward earnings. it's going to get a bump after what we've seen today. where does it get rich to you? >> we have $150 price target on it. we are looking out a couple of years. i'm not going to answer that. what i can say is we downgrade the stock at $95 to neutral thinking there wasn't anything that wasn't in the stock. we were wrong about that. there was a lot there if they are putting out $20 billion by 2020, they are probably going to

achieve that sooner than 2020. if it wasn't for currency, they would have achieved their 2016 guidance. they would achieve their 2017 guidance. all very positive. >> sam, thanks. >> thank you. >> i'm glad you brought up the point of valuation. if you compare it to under armour and nike has a dividend. >> under armour is a different story. it had 25% expected sales growth next year and they are not overseas. we see what happens when companies open up in a new market like china. if you are focused on valuation, you are probably focused object the wrong thing. i think there is a massive runway internationally. yesterday was the first day it closed below its 200 day moving average since the end of 2012. you probably see a retest of $80. that was the flash crash low from august 24.

that's when you get back in. >> we've been playing the space through foot locker. it's been a difficult retail take. it will be the beneficiary of slower sales in outer wear. hopefully more people running outside. up next, nike is not the only retail stock moving after hours. gap shares falling. >> starboard urging yahoo to drop its alibaba spin-off plan and sell its business. could that work? >> later, make or break for biotech. two big stocks in one fda meeting. the two stocks that could see massive moves in next week's trade. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about.

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welcome back to "fast money." square surging 45% in its first day of trade despite pricing below the range last night. >> people say it was priced to perfection because they priced it to keep the long term holders in to have stronger holders.

i don't get the whole ipo thing. i think this is a space that's probably will be commoditized. jack dorsey has his hand in two companies. he's got to get one 20right. i bet that would be twitter. people say it could be m&a for the american express of the world. i don't know that makes sense. i think it's rich. given the choice between jack's company and twitter. >> which was the winner today. >> starboard urging the company to drop plans to spin off alibaba saying time to sell its web business. time to bring in bob peck. you've been outspoken. do you agree they are saying the risk/reward is not there to go through the spin-off, doing the other way could be almost just as good. >> we pointed out a note last week if they go with the spin

and it does get taxed, there is a small chance it gets taxed, it's north of a $20 billion tax bill. it's big. their point is don't even take the chance. do something different we know is more finable so sell the core. >> is that what you would say to do? >> we have and written that. it's a good time to reassess and see what other options are out there. >> who is the buyer? starboard was saying move it together with aol and aol got bought by verizon. you put two bigger pieces of chunk, you get one bigger piece of chunk. >> one is traditional media. especially at this price. >> telcos could be in there.

and private equity. >> what happened to marissa mayer under either scenarios? does she stay longer in her job? >> one thing we pointed out last week, we wrote a memo to the board and said if the core deteriorates, there is a good chance marissa won't be here in a year. if she sells off the core, you can see the firm who buys it might want to run themselves or their own people. there is a good chance we have change here. >> sounds like almost under every scenario she is out. >> in starboard's view they said there needs to are change in the culture. we argue heat from investors is increasing on her. >> good to see you, the bob peck from suntrust. >> who came up with that? >> it's so creative. >> the trade is if you want anything, just buy alibaba. that's the trade.

this yahoo was way too complicated to me. i don't know what they have. maybe somebody could buy it. as a trader, i'm staying completely away from yahoo. if i want that exposure, i'm going to the source alibaba. >> one of the most powerful members of the fed speaking moments ago. what it could mean for a potential rate hike. you're watching "fast money" on cnbc, first in business worldwide. >> that could happen next week to two biotech stocks ahead of a key fda meeting. we'll tell you the names and how you can profit. >> plus -- >> deal or no deal? >> that's what traders want to know about a couple of big mergers that look to be on the rocks. the stocks and what it could mean for the market when "fast money" returns. good. very good. you see something moving off the shelves

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the big square ipo one day after its debut. insight from an early investor. "squawk alley" tomorrow. one biotech name could see huge swings when the fda advisory committee meets to discuss its drug used to treat a rare and fatal disease found in young boys. meg tirrell stock therapist joins us now. >> this is called the biggest

event in biotech this year. this is a total binary things and involves two stocks. bimarin is being focused on. it has a drug for muscular dystrophy which is a rare, universally fatal disease. there is nothing on the market to treat it. it has a drug going in front of the fda next week. an outside panel of advisors is meeting tuesday to debate whether this drug should be approved. tomorrow morning we get the briefing documents coming out of the fda ahead of this meeting. we could see big stock swings tomorrow, its competitor sarepta which has a drug in the same class but two months behind in the regulatory process. tuesday it is likely biomarin could be halted. we'll see big swings there there's so much demand for these drugs. there is nothing on the market. the patient advocacy is

unprecedented. people compare it to hiv in the 1980s. the data here is not good. there have been missed end points in the trials. for serepta, it's been tested in few patients. >> obviously the stock reaction, if biomarin gets a positive outcome and swings higher, does that mean sarepta goes higher or lower with it? >> that depends on the things the panel focuses on. if it focus on the fact they have a lot of data and patients, maybe that would be negative. if they show flexibility in terms of how they are thinking about measuring the efficacy of this drug, that could be positive. there's a lot of nuances here. people are seeing double-digit percentage point swings for both stocks potentially. >> for sarepta, it's muscular dystrophy treatment, right?

for biomarin, is it a one-trick pony that way? >> no. a lot of analysts like biomarin. they've got other rare disease drugs, including some on the market. this is becoming the nearest term catalyst. >> crazy volatile. >> this was an $80 stock last year. now it's $100 give or take. binary, yes, but is a company that can probably stand alone on its own. they are not going to have positive earnings for quite some time they have a cool pipeline. what you hope happens is you get negative news, it trades back down to $80 and take a shot there. >> are you still an ibb or fbt? >> no. not for a while. >> so the options that expire tomorrow in biomarin are implied by an 8% or 9% move just tomorrow's expiration. >> meg tirrell, thank you, our resident stock therapist. >> i dig the glasses.

>> wait a second. that's a line i would use. >> i know. that's why i looked over at you. up next, traders are betting three major deals could be on the rocks. one of our traders on this desk says it could spell opportunity in one name in particular. what that is. crude oil may be low but airlines are stuck in the mud. whether any names are offering up the perfect buying opportunity. mobile is here and it's free! make faster, smarter, better trading decisions with vectorvest mobile. the most powerful app or managing your portfolio from the palm of your hand. only vectorvest mobile analyzes, ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started

welcome back. traders are betting a number of high-profile mergers are about to go bust. one of our traders says one of them could be a great buy right now. we'll give you the nachlt the end of an era for lion's gate as the end of the installment "the hunger games" ends tonight. could this mean lights out for the stock? a special report. first -- stanley fischer finishing up a speak in san francisco. cnbc's chief economics reporter steve liesman has the highlights. >> stan fisher became the third and highest ranking official to signal a possible rate hike coming. here is what he said moments ago in san francisco. >> in the relatively near

future, probably some major central banks will begin gradually moving away from near zero interest rates. we have done everything we can to avoid surprising the markets and governments when we move. >> fischer went on to say interest rates near zero are not a steady state interest rate. the chance of rate hikes makes meetings exciting and interesting before there was no discussion of rate hikes. a couple of things about the effects of merging markets central banks have been telling the fed to "just do it." commodity prices could remain low for some time because of what he sees as prolonged weakness or lower growth rates out of asia. >> was he just being coy when he said some major central banks around the world are thinking about moving away from zero interest? wink-wink? >> he's not going to come right out and say the fed is going to do it.

what it fed is trying to do is put everybody on notice that these rate hikes are coming. if the data behaved the way the fed believes they are going to behave. we had one say conditions have been met. and dennis lockhart thinks the time to move is now. >> this sounds like a coordinated pr effort on behalf of the fed. i thought i've seen them at times in the past be more independent in their thinking. >> i can't say this is a coordinated effort. they seem to be coming to the same conclusions. the minutes show they all got behind the statement that talked about at the next meeting. what the minutes made clear this week, it was intended to send the signal. they are all onboard with a p l policy to tell markets it's

coming. to where individual statements all sound the same, they voted for the same policy at the end of october. >> steve, thank you. >> pleasure. >> steve liesman. what is your trade? we've already seen the markets move as if this is already a done deal. >> yes, agreed. i think that is exactly what's taken place. i think there is a concern with the fed with the rallying u.s. dollar. that is clearly in their crosshairs. they discussed it. something they shouldn't be discussing, but something they have discussed. what is working against them though, as they start to put their foot on the brake, you have other central banks accelerating which will continue to strengthen the u.s. dollar which i believe is negative for merging markets, which is negative for the equity market. it's all bullish for the bond market. you stay long, tlt. >> i'm short etf, the emerging markets. i would sell a short here on this news. strong dollar is going to hurt

them. the other place i would look, i would sell the financials. you sell the financials because it's going to be one and done. when you're done selling the financials, you sell them again because it's going to be one and done. that's what the bond market's pricing in. >> but theoretically the economy is improving. that is why in part you are in this trade and remain in this trade. >> i do believe the economy is improving. i don't think it's one and then another one. i don't think it's one and done for. i don't. if you gave me the releet today, i would not know how to trade to it make money on the next day. who knows what's going to happen? >> let's move on here. the fed's low interest rate policies have been a huge driver of deal making this year. could some of the biggest deals be on the verge of going bust? dom chu's got a look at a few takeover targets trading at steep discounts to the prices of the deals they signed. >> the regulatory and legal landscape obviously has been and still is changing right now.

that's throwing a bit of a monkey wrench, uncertainty to the markets when it comes to pending mergers. if the company makes an offer to buy another company, makes sense the company getting bought will trade close to the value of the deal price. if it trades at a premium, may signal traders think there is a hire bid coming elsewhere. trades at a discount, maybe means traders have doubts whether that deal gets done. here are the real doubters around some of these big proposed deals. a drug store giant walgreens, that proposed takeover of rite aid. same story with baker hughes which is getting bought out by larger oil field services company halliburton. cash and stock deal values baker hughes at $61.50 a share. comparatively trading $51 a share a big discount. then health insurers. a big focus in today's trade.

anthem's proposed purchase of cigna. cigna, $160 a share. trading at $128 now. you can think of this as the market's way of handicapping the odds of deals getting done. in this case, three examples of some of these bigger deals that may be on the rocks due to concerns. back to you. >> thank you, dom chu. let's play deal or no deal. >> is this a game? like that bald guy does that. >> what? >> right? "deal or no deal." >> mandel. >> how's that crew cut? >> rite aid and walgreen, deal or no deal? >> i'll take it. i think it gets done because i think walgreens will divest what they need to to get it done. >> deal. that's how you play the game. >> deal or no deal?

>> i think the answer is deal. i do think there is going to be consolidation in the space. i think it will go through. there are a couple of named bandied out there. deal, howie. >> i'm not howie. hello. halliburton/baker hughes? >> i think deal. it got held up with the eu last week. baker had a $22 billion market cap. there is a $3.5 million break-up fee. that is an embedded put here. if baker hughes gets hit on the fear of no deal, buy it any way. >> all these people here, these people, the deals are going to get done, but they are going to pay a steep premium because the stocks are trading lower. >> i think these deals get done because they are in the works. you have the break-up fee. you have to worry about the deals going forward. you want to just look for one proxy. look at hyg today, the etf. that was down 1% today.

a lot of these deals are financed, not necessarily with high yield debt, but if that financing starts to dry up, then deals going forward are going to be more difficult. >> starting to see that happen now. >> there was yesterday an interesting bloomberg article about a carlisle deal with the bank debt was having trouble getting done. that is the first crack you see in the leveraged debt markets. up next, crude is near decade lows. airline ticket price are rising. why are airline stocks stuck in a holding pattern? get it? jamie baker, the top analyst in the space will explain. >> "the hunger games" coming to an end. that could have lions gate shareholders starved for return. what could be the next catalyst for the stock. my language skills, i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right.

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responding? >> there have been a lot of concerns year-to-date over potential capacity and weak unit revenue trends. the fact of the matter is the industry is holding on to about 2/3 in fuel cost savings right now. passengers are getting 1/3, capital providers, shareholders are getting the lion's share. that's a good combination. we see a lot to be optimistic about with the stocks and industry fundamentals. >> should we be concerned about fuel prices creeping higher in 2016? >> i don't think so. that's not what the forward curve would suggest. interestingly, i think if fuel prices, if we were back here a year from now and let's say oil rallied to $80, $90 a barrel, chances are we would be feeling better about china. chances are the brazilian economy would be showing some traction. we would see fuel surcharges return to the pacific market. i think while earnings could trend lower, multiples might be even higher in that type of

environment. >> how much do you think are in these stocks for the events in paris and how much do they have to regain from that? >> sure. they've been choppy for this week. the fact of the matter is airline investors have learned do not underestimate the tenacity of travelers when confronted with events like these. the bali bombing, london, madrid, mumbai, none had a discernible impact on air travel demand in the regions they occurred. the one terrorist event it did impact demand was one which there was no loss of life involved, the london liquid bomb event in 2006. that led to these pesky carry-on regulations. we saw some short haul automotive diversion then. we wouldn't look for lasting impact from the tragedy of last weekend.

>> why is delta your top pick? >> there's a lot to be excited about for next year. the american u.s. air integration has gone well. they can start unlocking the merits of that transaction. united has a new ceo who will win back the frontline and hopefully restoring the confidence in customer service metrics. delta we feel most certain about earnings model. delta significantly overpaid for fuel the first half of this year because they cling to the notion of fuel hedging. that turns to an advantage the first half of 2016. they are likely to show larger momentum. the deficit is less severe an american/united. delta would emerge as a top pick for those reasons. >> great to see you. thank you. >> you agree with delta? >> it's interesting. quickly. >> okay. >> we did a double tag team in the airlines. >> i remember that.

>> we took the bear case in january. that was the high. delta recently recaptured that $52 level we saw in january but seemingly failed. delta's got to get through $52 or you're looking at double tops. jetblue was a stock we said will do well. as it turned out, it did. i think jetblue is still the place to be in the space. >> i will let you get in. that was a backhand takedown of your -- >> no. >> we were tagging out. i would say delta and united have the most international exposure if we see $90 oil a year from now, things will be better in asia if we have $40 oil a year from now, asia will be worse. that 40% of the revenue will be difficult for them. i think jetblue has been straddling $25. it is up 60% of the year. this one is going to break out on the slightest good single stock news related to their company. >> i feel like we should have a

rematch of the teams. >> do it. giddyap. coming up, the last lions gate multimillion dollar franchise "the hunger games" will be released tonight. will they find a way to attract investors in 2016?

welcome back to "fast money." two big retail stocks reporting moments ago. >> let's start with shares of gap. down by about a percent. they are off their after-hours low here. 180,000 shares traded so far. the retailer cut its full year forecast due to the strong dollar. also weaker sales. we've known this for a while. banana republic and gap brands have been lagging a while. old navy has been doing well. companywide though, comp store sales fell 2% dragged down by a 12% decline at banana republic. gold navy line. comp story sales were positive by 4% at that outlet. gap being driven by old navy. let's go to the offprice retail.

ross stores surging after hours. right now up by about 8%. hub, nearly half a million shares traded. outlook came in slightly lower than estimates. the company did say it see as highly promotional holiday shopping season ahead. the stock is up about 6% this year. ross stores, gap moving in opposite directions. ross stores to the up side. back to you. >> thank you, dom chu. where would you go on this trade? >> ross and t.j. have been so good. i thought they were too expensive. retail weakness good for them. >> shares of lions gate falling ahead of release of the final "hunger games" movie. that is where bk will go after the show. what is next for lions gate after its biggest franchise leaves theaters?

>> it's the end of "the hunger games" era. that leaves lions gate without another mega franchise. "mockingjay part 2" is expected to be a big hit this weekend. the monday after of the last three films opened, the stock on average traded lower by about 2.4% according to kensho. lions gate with its stock up about 15% so far this year beings even after tumbling after pricing a secondary offering on monday is in the midst of diversification and expansion thanks to investor and board member john malone. last week liberty global and discovery communications, two other investments of malone's, announced strategic investments in and licensing partnerships with lions gate. that in addition to a full slate of movies and tv shows. today the company announced an investment in ad-supported video service it would license content to. last week they made an investment in a reality tv

producer pilgrim studios. they are working on theme parts, a "hunger games" stage show in london. the bigger "the hunger games" is this weekend, the bigger demand for the brands in various different forms outside of the movie theater, including in these theme parks. back to you. >> in terms of what could replace the success of "hunger games" in the theaters, is there another franchise? it seems the other trilogy investments haven't been as robust or successful as "hunger games." >> they have the "divergent" franchise. we'll see if they make any other acquisitions. before "hunger games" there was "twilight." when that came to an end people were also asking questions. may make a range of successful tv shows including "orange is

the new black" and "nashville." >> thank you julia dressed like katniss today. took them about three weeks to recapture that $32 level. it was off to the races. michael burns a stud. discovery communications taking a stake. i think it's going to recapture $39 and make all-time highs. you want to trade it, wait for a close above that secondary price and get long stock. >> i agree with guy. i would buy it on these prices. not only do you have the tv portion of their business starting to take over, you have the john malone presence. it will be hard for this stock to sell off significantly with that presence there. i would not necessarily worry about "hunger games." we could do a prequel.

>> brilliant. >> let's shift gears and talk about ford. get it? shares up more than 4% this week. one options trader is betting on more games. >> ford p has underperformed its peer gm. it's down 6% versus gm which is up 4%. cheap valuations. ford has underperformed. there was a trick today that caught my eye in ford looking out to february expiration. there was an opening buyer of 10,000 of the february 15 call paying 51 cents. that's up about 6.5% from current levels. if you come back and look at the one-year chart, this $14 level is a pretty big level. it's $14.55 here. this was the recent resistance at $16. this trader is looking to make a defined risk bet over the next few months that the stock breaks out above those levels.

this is why this $14 level is so significant, but if you do have a couple of good monthly auto sales and a good beat coming in january, there's a lot of leverage to the up side. these calls are not exactly cheap. this is implied volatility. price of options in gm. they have more room to go. if the stock does hang in here, option prices are going to come in here. this is a way to make a levered bet to the upside. >> for more "options action" the full show is tomorrow. what traders are watching tomorrow. 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.

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time for the final trade. >> back to how we started the show, pfizer. if i see $31, i'm a buyer. >> allergan is up. >> that's kind of interesting. i still think you sell the biotechs, even though you might get a little rally. ibb, $340 to sell them. >> i think we saw big overreaction in anthem. wait a little, let it settle out the next day or two and take a look. >> fun show. great crew.

newmont up 2.4% today. i think it's going to continue. >> all right. i'm melissa lee. see you back here tomorrow at 5:00. meantime, "mad money" with jim cramer starts right now. but to educate and teach. call me or tweet me. earnings surprises, news surprises, takeover surprises, political surprises and it keeps