you know what, the gang's all here in new york city while they're getting ready, here's what's coming up. >> well, comes down to a few moments. >> and apple's moment is fast approach wg the release of its new iphone we'll tell you how to protect your shares while still profiting. plus -- ♪ that's what biotech stocks are doing and there's one name that looks ready to break out

and -- reach out and touch someone far away >> some investors wish ed they never touched telephone share, but if you money, we'll show you how to get some back using options. the action begins right now. ♪ >> let's get to it one overlooked soir this week, energy stocks come tog life with big oil getting a bounce from the weak dollar and irma's impending landfall exxon mobil up 3%. chevron, royal dutch shell, british petroleum all climbing 2% this is by a late day sell off in crude today energy still down over 14% year to date. the second worst performing sector in the s&p. so, do you buy this bounce let's get to the money now and find out dan? >> i don't think so. look at xle, almost 50% is three stocks we have a little bounce in that

sector there's some reasons investors are looking to be a bit contrarian there to me, i don't buy them. we have a one-year chart if you look at how this stock has traded in december, is just you know, it's very well defined. use carter's term down trend here and it's yet to break out from there so yesterday, when it looks like it was going to get going, it failed at the down trend i think it sets up for traders who want to be nimble. >> it's often the case, we have a storm like this we had in the gulf and now, the most recent one, these can be a short-term catalyst to basically -- a price change that doesn't mean the long er term secular head winds don't remain in tact i think they do. the demand side for crude in the developed world continues to decline. that's really the bigger story here

>> it's at the bottom. this down trend dan's talking about, it's been characterized by counter -- there have been four each about 5%. this is just another one which -- >> we have another chart the five-year chart. remember once i dubbed a chart called the triangle of death it's the convergence of the 2015 breakdown. that sets up for more favorable. >> what's the trade? >> you guys have done a nice job catching those rallies a couple of times this year

you can look near the money put spread when stock was trading 64.5 today, you could buy for about a dollar that's your max risk there it breaks down at 63 make up at $3 and if you do get a retest of the lows, those trading just about seven, eight days ago around 62 bucks i think this is in play and you got it right where you want it o so to me, i like going the opposite way of looking down looking for a retest of 60 over the next six weeks, risking one dollar to make three >> you know, this is one of those situations where you know, i think a lot of people are wondering why we don't use credit spreads all the time. they make a lot of sense, but in situations like this, options premiums are low usually, when stock prices decline preess go up i think it's a good way to make a play

>> these levels. >> well, look, the key issue is has something changed that's more permanent energy has lost its way. >> i get that longer term trend you see is down and in terms of these rallies, are you worried, we've not only got irma, but jose, all these other hurricanes lines up >> i think history will show these are all fades. we're in market here with the stuff that continues to work, lev tats, the stuff that doesn't is a sell on any rally >> all right energy's not the only sector on a tear health care stocks hitting a high this week with both big pharma and biotech breaking out. chart master says there's one

name set for a move higher so, charter, what do you see >> amgen, health care, let's talk about the subject more broadly. first, look at amgen the it is the if not the best performing stock of all time one of the best and let's try to prove that here's a 30-year chart on the s&p 500. it is what it is it's up. markets go up 70% of the time. let's add competitors. put in mcdonald's all of a sudden, s&p is up high r. keep going put in nike, now, mcdonald's is the piker. let's put in home depot. even better than nike. keep going trz apple l is up compared -- nothing close. now, what's interesting is this great stock has done nothing for

three years, so you have the set up of the greatest stock of all time, then here and now, this is what happens if you put money on it you've got 150 grand, 11 the same thing taz chart keep going this is the real set up. amgen has done ng for three years. well defined tops at a level they are well defined. over and over and over we are sitting here yet and the presunlgts is we're going to bust out in a big way. here's long-term chart here's how i would draw the lines. then put your arrow in and think about it >> coming to life. what's your trade?

>>. >> one of the reasons for that, companies like this one, which used to be great stories are less so now. they are dealing with mature drugs. this is situation where like xle and dan's trade, options premiums are low we have made a fairly sharp move on a relatively short basis. so again, i want to use a long premium trade here i'm looking to december. the 185, 200 call spread you could spend $4.50 for that i think this is a decent way to make a play to the upside. you're going to be risking the price the to make the bet. we're not really subjected to the risk if it fails >> there's two things i like abt. the chart is fabulous. when you look at the long consolidation over the period of time, just breaking out. kind of quiet breakout unloved sector that will last what, 18 months, two years, when

you look at a name like amgen, you look at what you're risking, i like the defined risk way. >> one of the main reasons we saw this was gilead buying kite. to your point. but the thought was that gilead buys kite and this opens the flood gates of the bio tech money swatching around on the sidelines waiting to make a deal is that the presumption in terms of cowell help it move higher? >> we do see deals from time to time i see them more on the acquiring side than acquired for sure. one of the things, there was a point you made on "fast money" yesterday and it was a good one. which is companies with latent pricing power traded a premium ones exercising their pricing power do not that's one of the reasons why this sector has been trading at a big discount people have been expecting these

drugs to persist in a declining revenue. that's not what you're seeing here you're not seeing declining revenues and they have a pipeline especially in the migraine space the discount probably isn't justified. >> also, if you were to go pre gilead news, it was still second best performing sector. which means it's been good all along. so if the market is going to keep going, if the market gets in trouble it's in big pharma. right. how does the chart look relative to amgen >> it was more damaged than amgen. really bombed out.

>> right forced to choose one of the drugs this year changeded my life. >> i want one. if you're going to own something that isn't trade iing well, in industry that doesn't, it's always growing, 17% of gdp, this seems like a good place to have your money if you're going to basically spread it around >> all right for everything options action, check our website. we've got the hottest news, videos and throughout the week and exclusive trades and while you're there, you can check out our super cool newsletter. here's what else is coming up. ♪ >> apple's getting ready to unveil its big, new iphone if you're worried, we'll show you how to protect yourself

while still being able to profit plus, calling all options action fans reach into your pocket, grab your phone and tweet us your question at opgs action. if it's nice, we'll answer on air. when oioptns action returns. >> logical hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? 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.

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 some traders are already jockeying for position around apple shares as we get ready of course for the big company event next tuesday where there's a lot of buzz about the anticipated release of the new iphone. so, accord iing to our data partners, the last five iphone releases have helped lead to some big price moves over the median term.

now, in the 60 trading days following the release of the iphone 5s and 5c models, back in september 2013, the stoke grows by 19% it was up 7% in that span following the september 2014 release of the 6 and 6 plus models it was down 6% in the 60 days after the september 2015 release of the 6s and 6s plus models and the march 2016 release of the se model, it was down around 14%. most recently after the september 2016 release of the 7 and 7 plus models, it was down just a mere 1.5% in 60 days. of course, it's all going to depend on just how much wow that event is going to generate will people shell out big bucks for the phone, whether or not the it's enough to drive an ever increasing market cap jet like apple, that remains to be seen back to you. >> thanks. iphone jitters weighing on apple

this week. the stock down more than 3%. so if you've got jitters, too, dan's got a way to play offense and defense. he's at the plasma for us. call to action hey, dan >> you were talking about stlat ji using options called the stock up placement where you're really trying to replicate long exposure. you might consider a tok replacement strategy, you're considering there could be a volatile event or a period in time to possibly lock in gains. because you think they're attractive we have this one event next tuesday. there's not only going on the unveiling of it, but the launch of the product then an earnings event in late october. so the way i look out for the next six or seven week, it can

be a rocky period. the other thing, the stock is u 37%, so if there's a lot of this good news in the stock, that's another reason why you may want to lock in some profits. let's look at this chart right here i mean, obviously, it's clear. the up trend here. we have pretty good support in the low 150s that's where the stock gap is from after earnings in the beginning of august. to the you probably have some good support at 150. air pocket down to 140 that's another reason why you may want to consider defining your risk. lastly, the point i made about option price, when we buy options, you want to make sure they're cheap and you earn out that premium, in this case, look at how implied volatility in apple has been moving higher well before the earnings, so to me, that suggests that options prices vk kicking up and the stock just made a new high in the week a new all time high. so, you know, let's think about

strategies here. the stock's down a few bucks from that all time high. today when the stock was trading at 159, i was thinking about not a long premium trade, i was thinking about i because i want to mitigate what i think to be slightly expensive options, but i want to get that long exposure so i look at the call butterfly. i want to look at november expiration going to catch all three events. today, when the stock was trading at 159, you could buy the november 160, 178, 180 call butterfly pay $2 for that. you're buying the november -- you're selling two of the november 170 calls for $2 each for a total o $6 then buying one way out of the money. november 180 calls you make money between 162 and

178. you make up to $8 your max gain is at 170. it sounds complicated, but think about it this way. between 162 and 178, you can make up to $8 and your max gain, 8 at 170, ss kind of tleing the needle, xwrour only risk 2 clrs. i like this trade strategy as a defined risk, long way to play for a breakout to new highs with lots of events and mitigating my risk to a small amount of money. the other point i want to make, i expect option prices to come in that's why i'm looking at this strategy rather than a straight call purchase or a call spread >> trade mike? >> i like butt u er flies in soe case, the issue i have is is that the longer data the butterfly is, the harder it is to thread that needle. in order, if you're say thinking about a a 5% move into next week, you think stock is going to maybe move 5% by next week,

that's one thing saying i think going to be up 7% and you have a couple of months to go, it's harder it's not going to go to the maximum value of that butterfly unless it lands there at the end. the one thing i'

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. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim.

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oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? 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. welcome back last month, dan bet on a bounce for at&t >> so, today, when the stock was trading at 37.5, say you were to buy a 100 shares of stock, you'd like out to october expiration and sell one 100 shares one of the october 39 calls at 38 cents off buy rate on.

>> the stock has tanked almost 5% since his trade now with the premium from selling the call, losses are mitigated somewhat. dan, how are you managing? >> listen, this $2 drop really surprised me i started looking higher than these levels prior to their earnings i think you have a couple of cows okay. i think they're going to get news on the time warner deal and at this point, you probably want to look out to the 37 strike an do a roll as far as rolling down that short call strike, but i expect time warner news cob b good and i expect the stock to trade up i'm long it, pretty happy staying long it these levels >> it's tough to try to cast on a stock that hasn't performed well going into the trade, but we are get tog a point now where i think both yield and valuation are starting to potentially throw a floor in for the technical view, we're going to have to go to him, but from a fundamental perspective, it's hard to see more damage before earnings. >> there was a gap like a bad day

>> yeah. all right. up next, final call from the options pits i'm here at the td ameritrade trader offices. 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 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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the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade tyke to take your tweets first question from peter. when selling to open call credit spreads or put credit sprerds, do you recommend closing early or wait until it eck pyres >> i think it depends on how much the stock has moved if you sell for a percent of its value and it's worth 5 to 10%, yeah, you want to take the money. the otherwise, if it's just a little bit of a profit, no sfl our next fan asks sellin back november 15 puts for $2, good idea? dan. >> if you can get it for 2, eve seen it at 1.50. >> final call time carter worth >> important stock, amgen, very important level.

buyer appropriate. >> mike. >> reasonable valuation and low options premium, i'd by the 185. >> dan >> apple bulls, i think it maybes sense to define risk over the next six weeks >> looks like our time has expired. thanks so much for watching. for more, check out ou "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. we too often investor the day. i hear people talk about what is working.