welcome back everybody, live from the nasdaq market we'll take a break of all the breaking news and talk of some of the action. here is what's coming up on the show the official party for tesla model 3 is hours away. investors may not want to celebrate too soon did this week's tech wreck make you nervous of apple earnings? don't be we have a way to buy protection. dan will break it down

>> later crude oil just made a run to $50. there is something in the chart that can spell trouble for black gold we'll tell you what it is. the action begins now. >> welcome back everybody, it has been a wild couple of days for technology nasdaq posing its back-to-back losses after earning its alphabet google. the biggest name in space, the biggest name in the world reports that's apple two request, what can we expect from apple and should investor be bulished? >> dan >> over the last week and a half, it makes sense to go back and look at the biggest name drive.

we had amazon and facebook and google and microsoft, that's about $2.3 trillion on market cap. a 4% move in either direction of those. they under performed those moves. these are stocks that are up 30% or 40% i think that's incentiv structie you can assume that it is likely to under perform its 4%. >> it is interesting when you talk about what amazon did, first of all, we have seen this kind of thing many, many times before the price of these stocks are so high, you are talking about a $20 or $30 price move, everybody acts it is something big take a look at where the stock is relatively to where it was

three or six months ago the option market is expected and it is exactly. >> what strikes me about this conversation, we group a certain amount of stocks together. apple had nothing to do with those. tesla is about promise ands r n ruling the world apple is ruling the world right now. there is a thing like i cloud and the apple watch, not because we want to make money on those, we want to see how much is roped in the ecosystem >> i saw it on the tweet >> one tenth of walmart despite having a evaluation and twice that >> this is a hardware company and jim just mentioned i cloud

in there you want to see the revenue of a much greater and higher multiples. one of the reasons why they bear and hole in ts in the story, if look back at history in the hardware business and tech, there is no company ever been able to maintain that. we have seen it from nokia and motorola >> apple does more in revenues >> dan, you got an apple trade >> as far as i am concerned, i want to say one thing. they have a billion ios devices around the world their service business is growing. >> a positive coming >> not even impact full for this company to inspect at $230 million in sales. it is growing 17% year over year to me.

facebook sales >> we want to know what to do, trade. >> chill out >> i am not telling you to leave. >> i suspect it to come in line, i expect if we'll have a big raise. you want to look back these earning events, introducing early september and they start to sell in late september. analysts start looking at these things and raising their numbers and see the runway, what it is going to be. this one is particularly interesting. it is a ten year anniversary and there is talks from suppliers of the high end that's north of $1,000 to me, i think all of those reasons combined if you are holder, you may want to think of

cheap protection higher end to the fall but define your risks outside. i want to look at this chart right here this is really interesting it is $140 this is $135 to $145 >> i think you get the point $140 is important. there is a gap to be filled. i don't think it is going to happen on earnings lets talk about strategy the stock is up 30% and plus on the year in the situation, you would be selling an upside call and you use the proceed of that call i want to look at october's expiration, that's going to encompass a lot of things about this today, when the stock was trading at 150 you can look at its october

operation, selling at 160 at $2.95. if you use the proceeds to buy it for $2.95 this is how you make money 100 shares and you have profit potentials between 160 of $10 >> you have potential losses of 140 downside you owe the 140. your cat gains at october operations at 150. again, the stock is up 30% of the year this is a strategy that makes a lot of sense if you look to hold on the ec event. i am looking to do this and i am not paying any premiums to do it it is interesting to me about this and we talked about it before in names like apple and companies that has a lot of carbon the downside seat, you you have 10 bucks worth of

upside and $10 worth of downside risk viewers maybe saying well, is that a little bit of buy the 160 call spread. if you did, you would end up with results such like this. you would pay ten bucks for that spread you are taking $10 risk and $10 outside. >> interesting idea, guys big report next week is tesla. >> the company is releasing its model three in a couple of hours. the worldwide first see that model c. it is one of the most active single stock options in that time period, what can we expect from reports in the case week. probably a big move. we say that because the option market is implying 7.5% move in higher direction that's above the 5.5% average

move for those keeping scores, that would mark a nearly $4 billion shift in market count the easiest ways to trade this if you think some people do that's forming a head and shoulder top here. you can look at the august 335 and what am i doing here you can spend $14.90 when i was looking at it. you can sell two of the august, $6.20 cent each. the downside if is runs down through the lower strike, you will ultimately because you are short in the long stong bck >> so many times when you talk

to people and they see the selling of the naked put it is about understanding your risk a lot of people are along the stack. if you are along the stack of 310, it is as fine trade >> if you are along the stock at 335, this trade, you are taking losses to 280. there is a big short interest. what happens when a heavily shorted stock drop, gets it covered. >> this is a stock and we have a five or six years charge of republicans of 2010. every year is 30 or 35%. it is one thing to own a stock and have it you know, mind set of owning it and time rises and another thing is knowing you are coming up to an expiration and the lower it goes, do that strike what i am saying it is different. >> to my point is when apple has

a product launch, they have a product launch every couple of years and if they miss, it is a big deal tesla has a product launch happening today. we have three week os time >> we got to go, should we worry about the fact that smart people are betting the stocks long and a lot of smart people are being it short they cannot figure out the divergence of race >> that's not going to be answered next three weeks and that helps protect you from the big downside move. >> it is not the known, known, it is the unknown that's the trouble. >> much more action. here is what's coming up on the rest of the show >> all of you to stop what you are doing and listen >> crude oil just posted its best week of the year. cannon ball! ♪

and energy stock is telling you a different story. plus, calling on option panels and, reach your partner, not your partner, ask us our answer. "option actions" sponsored by tv american trade s of other trader? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. what if we could bring you by having better values? at blue apron, we work directly with more than a hundred family farms.

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actions. energy stocks could be telling a different story. bob pisani at the new york exchange with more >> hi brian, explain this to me. oil had its best week of the year that's a pretty poor response. given oil has gone from $42 to almost $50 in just a month so here is the problem after being burned badly all year on oil and oil company estimates, the street is scepticle. no one can get their hands on the price and nobody, in january, oils around $50 and

analysts can confidently say oil is about $50 in a third quarter. wrong, it went straight down and now it is starting to recover. analysts forecast a strong recovery of earnings above oil it is not nearly as expected a few months ago it does not help much if you got a big oil executive essentially saying we'll never hear a oil rally ever, yes, royal dutch ceo van beurden says we have quote, "lower for ever" no wonder these oil companies are focusing on just keeping costs down >> back to you brian bob pisani, long day, thank you. jim, you are our future now.

what's your thinking >> we look at the year out trade. it is aconsolidation now, we are at the topside of that channel the story does not stay the same except there is a new rake of the demand part of it. it is still supply and it is opec that lost its power or maybe not loss but not flexing their muscles as much. oil is turning around 49 to 50 here >> that's a long oil etf in conjunction of wfti context. so so that trade you risks of

15%. $15 to make potential 35 so you start making money below 9 $85 and the most risk is the money that you put in. >> it does not seem like a widespread, maybe that's the normal >> i think the best way to think about it is on the percentage. >> that's right. >> obviously, this is a fraction of the price of a barrel of crude so instead of trading 50 bucks. you are looking at a $10 instrument that's the way to look at it because i think is limited upside, i don't see it spiking higher >> what's the main ideal outcome for you with a price of the barrel >> it is a 1-5 ratio

lets say at 49 or lets call it 46 >> that's a big win. >> you're betting that oil is going to drop? >> you are making a wise intelligent. >> exactly >> it is a trade >> the other thing that's really interesting, look at the dollar down of 10%. of the dollar index, that's when crude starts to make its move back to 50 and it fell off mike and carter, moving it back to 70. that will one looks really interesting. even on a day that exxon is down 2% after its earning, it was flatten over the day that one looks like it is breaking out >> all right, up next.

one dow posted their worst year. great news for our friend, mike here we'll tell you why we say that on "option actions." let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and 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. see options data like never before. with thinkorswim only at td ameritrade.

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it is time the look back at our open trades. they were spot on with that call here is what we mean "option actions" it is how we make speedy profits. carter thought that the down stocks run was over done >> what i am thinking is that 3 m is going a little too far if you are a short seller >> hmm the chart master maybe onto something. shortening this doc of an industrialized disaster. >> what he said. >> so to reduce his risk, mike bought the august 210 strike how to make money? on the road, $206.25 cents by

august operations. >> here, there is your $4 for your pathetic pleep ble[ bleep . >> easy there, buddy he created his spread. between the $3.75 krcents spent, he cut the total cost of his trade down to

what will they do now? boy, you may have noticed that carter is not here tonight he's on vacation, he did send us a postcard here is a bit of it. i enjoyed a bit of it. at this point, i am inclined to reduce the position by half and retain the balance for perspective further weakness carter if you are out there in some french bar drinking, hello, come back soon >> mike, what are you doing with the trade? >> we can take the profits and roll down to 219 we cancel it three times that price right now and take the same amount we sold last time and we'll walk away with 5 bucks a profit >> it consolidated and it has dropped and did not bounce

>> all right, merci. >> up next, tweets and the final call hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. "option actions" is sponsored by think or swim by ameri-trade the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade

steve, other than making me move stuff, i'm here at the td ameritrade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and 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. see options data like never before. with thinkorswim only at td ameritrade. welcome back, lets take a tweet. would you rather be a seller or buyer of volatility calls right now with a record low? >> i rather be an owner of options than a seller of it here >> the last word for the option pi pits >> earnings is decent and i see no reason to sell it >> apple next week, if you are a long holder, look out october and look out for callers >> apple is not the main event >> the earnings is not the main event. >> tesla's the main event.

>> i think we with got through the entire show without saying thang. >> i said that >> never mind then >> save travels home everybody we'll see you right here next week "mad money" with jim cramer starts radight now good-bye everybody >> announcer: the following is a paid advertisement for the worx hydroshot, featuring longtime worx expert and seasoned do-it-yourselfer paul ganus. ththe worx hydroshot, the worlds first portable power cleaner that lets you clean any time, anywhere. fueled by a a 20-volt max lithium battery, it's self-contained and pressurizes any fresh water source. just grab and go to clean anywhere and everywhere, leaving dirt and grime where it belongs. you can even use your normal hose and boost its pressure up to 10 times. don't let messes build up. quickly and easily maintain your outside spaces and geaye