years. everyone should think about that >> if berkshire hathaway stock keeps pace -- >> 12.5 million when the dow gets to 1 million. that's why i love you. that's all for today buy and hold berkshire this is not investment advice. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," the bond bashing continues with the yield in the ten-year hitting a one-month high where should you put your money now? the traders will give you their playbook >> one supposed safe sector is having its worst two-day stretch in a year. we'll tell you if any of our traders are buying this dip. >> and later, our own guy adami sat down with p. diddy and mark wahlberg to talk about their business venture together. we'll hear that interview later

this hour. believe it or not, there's a way to make money off of it. first woe stae start with ae gone bad sour reviews of the iphone 8 and the watch follows a huge run in the stock. we all talking about buying this name on a pullback could this be your best chance to buy apple here? you said around here it would start looking interesting to you. >> it would, and it needs to hold tim said, what's three points? three points is actually really important because where support is 155 to me was support level. now, if we hold here and we bounce over the next day, then i'm going to get more interested other than that, we'll have to wait for the story to play out right now nobody wants to buy the iphone 8, everybody will be waiting for the x or the ten or whatever we're calling it these days, and the watch is an issue. ultimately those are good things for apple.

i need to see the sentiment change in the marketplace. right now it looks like a liquidation. >> if you want to own the stock for the long haul, nothing has changed in terms of that announcements, the watch is now becoming a big deal. like i say, i'm confused by that, brian. if you like apple, everything they've given you over the last couple of weeks is exactly what you should have expected, which includes a release that probably, as you get into the x, you've got technological advances that may be a little glitchy. the stock is a massive move. >> my point is more of a trading point. if you're going to own apple for the next three or four years, what's the difference, a couple of points, i get it. i'm talking more as a trading type of move, how i play this, coming into the x, what's going on right now for me, i need to see support, hold, and a reversal to get excited about it >> are these real fundamental issues with apple? does this mean there's a

question mark over the iphone 8? >> what's clear in the lead-up into the launch of these products, we had a stock at all-time highs it had gained $200 billion in market cap on the year a lot of sentiment was focused on this deluge of products coming out, this big upgrade cycle with the iphone 8, this high end iphone x, this untethered watch in november, prior to the holiday season, the alexa competitor that's an important device why the watch has become important is the untethered-ness of it makes you start thinking about ambient computing, the home pod and all this sort of stuff. if every single one of these new products gets a bad review and they're saying it's glitchy and wait for the next generation, you may not have the super cycle on this 200 to 300 million units of iphones it may just be much smaller. >> apple has the most loyal customer base in the world, of

which you were one >> i read "the wall street journal"'s review and i said to myself, how many weeks do i have to return the watch if it's that glitchy? that's exactly what i did with the first watch when it came out, it wasn't a differentiator. if the watch i didn't like three years ago doesn't make phone calls and doesn't connect properly on an lte signal, then i will return it >> so you're giving up on the stock? >> no. i wouldn't have done what bk did over here. when you think about it, i would have said a gap filled to the prior earnings would have been going to me, which is like 150-ish or something like that then there's great support at 140. then you have a 12% correction from that high and then -- >> so you would wait until that 140? >> because it has to digest. >> you went to silly >> we're going to be 143 >> oh, you know what, it's important. >> guys, hold on

>> it goes to -- >> we have guy adami here, it's nice for you to show up today. don't forget, you remember that realize that samsung had a i know the stock has recovered or whatever. but that took a real big hit >> it did not. no, it did not >> really? >> samsung has been more profitable than apple for -- >> are you talking about samsung phones catching on fire? that's a little different from the iphone >> samsung is the best tech company in the world right now are you kidding me semi conductors, hardware, displays >> guy, there's a lot of arguments going on on here at the desk >> our viewers at home are watching i'm intrigued by the whole thing. my apple credibility is waning at best. i've been right, i've been wrong. this is how i thought it would happen last year, 2016, towards the end of it year, i said there's a very good chance we go up to the previous highs of 134 and fail well, it got to 134 and continued up now, if you're in the camp that

pullback is imminent, apple is at the 134 level, the highest two years ago. i'm not suggesting it gets there. if i hadn't been in the stock all these years, that's what i would be waiting for quickly, we've been talking about micron for months, it's been a monster yesterday it traded up to those highs that we saw about a year and a half ago i think it may have failed, because it traded two times normal volume. micron, which we've been positive on, it's time to take a powder >> here's my question, though. every single iphone launch, we come up with negative reviews. >> it rallies into the release >> right, and we have a selloff. isn't that what's happening again? then the stock resumes higher. >> what's interesting about the move in apple was that the momentum coming into this started earlier and in fact you want to own apple for their fiscal q1 and possibly the nest quarter because you get into

chinese new year you haven't wanted to own it in the summertime period we went through, even in buildup you just think you've front loaded a lot of growth i agree with dan, the ecosystem is very powerful this is what you're saying, they have a huge opportunity, they better not blow it and better not be too confident >> one thing that i wasn't expecting, the quarter they just reported, you had the services growth reaccelerate. it was in the teens. to me, off a very low base, it wasn't exciting. but if you see that growth in the 20s and that sort of thing, all of a sudden you think about the ecosystem, it's expanded with wearables, watches, home pods that's how you say the stock gets to a trillion dollars i don't think a consolidation between 140 and 160 would be a horrible thing goat all these negative reviews out, get the glitches out of the way. the only reason i brought up the recall is if they did have to bring the watch back, it's just

a hit from a sentiment at some point because it's a company that is known for getting it right on first release >> will apple be higher or lower in six months than where it is today? >> it's going to be higher that long term trend line is intact >> it can only be one of two i think it can be both it can be higher and lower i'm probably more in the dan camp of 140 to 160 range higher and lower than where it is today >> but range bound here, plus or minus ten. >> i think it has probably more room to go to the downside, good support in the 140s. in the next few months, this thing ticks into market cap. >> six months? >> late march, call me a liar. >> is this your first day of the calendar >> higher in six months. thanks for answering the question it may be apple's worst month in almost a year and a half but the chart master says there's even more pain to come

for other tech giants. carter worth has more. >> there's idiosyncratic weakness but it's also row tagsal wetags rotational weakness, apple is being compared to more cyclical names. what we've got here, and you recognize the logos, these are the top five largest stocks in the s&p. they're all of a type, of course there's no steelcompanies in here, for instance now, this is the point that matters. those top five stocks at a market cap of $3 trillion are the same value as the bottom 250 stocks in the s&p. while that's happened certain other times in history, it's a fairly infrequent type of circumstance those names are all under pressure we'll look at a few charts and then we'll get to apple.

this two-panel chart, those five plotted as a basket, equal weight, $3 trillion. the key level is the day you had the short sale report in nvidia. this basket is at the exact same price, absolute, literally unchanged, but its relative performance to the s&p is below that key level and so that's the rotation issue. is that over probably not let's keep going and see if we can drill down on apple. so there's the chart let's draw some lines. the lines actually draw themselves quite well. here is the trend line of the past 12 months it is literally to the penny, to the penny, to the penny, to the penny. and over the last two sessions, three sessions, we have broken this trend line. so i know you were talking about this, it would have to save

itself to not have what presumptively is coming. here's the long term chart going back over the last five years. and that's the key level that we've just started to break on a minor basis. again, that's a 12-month range here is the long term trend line so where we simply get back to the long term trend line of the last five years, which we have done several times, that's a good, healthy 10, 12% from here. and there's every prospect that that can happen. let's look at this a different way, a long term chart i'm not sure that's it let me see if i can pull this up one more time. here we go all right. this goes back to financial crisis low are we going all the way down here to this trend line? that's a 50% decline i think if you can ever use the word "never," now is the time. apple is never dropping 50%. although it has, it dropped 50% in 2013. so what i think we can say, last chart, is that at a minimum, and

guy cited this exact level, we can easily check back to the highs of 2015. and i think that's a pretty good range. again, that puts you down 10 to 12%. >> carter is coming over i don't even think that's a question >> that's a given. >> we almost lost him, he almost left the board when we were arguing. >> obviously then, i don't want to say "obviously," but you think these big cap tech names are in trouble i would presume you think the market rally is in trouble as well >> so if money comes out of popular names, it either stays out of the market or has to go into the market. right now, it's going into some of the cyclical things that you and especially tim have talked about, energy names and financials the question is, are those moves a little overdone? energy looks a little overdone if you get real rotation out of this, i'm not quite sure what part of the market could pick up

that capital again, what if i put up the top 20 you know, to be convenient for a very easy sort of basket but i think the thing is this. apple, we know on the lows, when it was growing like a weed, it was down 60 plus%. we know in '13, it dropped 55. it can easily sell off 10, 12. it's not immune from that type of thing >> carter, you had facebook up there. it seems to have some support at 169, let's call it is that the better of all the five >> i think microsoft is the best it is so orderly and had no trouble. facebook from my point of view is second. amazon, google, are a bit twitchy. >> the predisposition of investors to invest, where would you go >> i'm not inclined to chase

energy the banks are so dependent on rates that they look stuck even if they were to break out a bit, i still think health care is heads you lose, tails you win. it has such a defensive element to it. if it there's a draw on equities, health care will serve you will >> you sound cautious. you're not giving me a clear answer >> you said where would i go, if not into q's, health care. >> got it. >> you said the zenith of this whole thing. out of the 30 people >> you know what's interesting to me, carter didn't mention this, but i'm sure he thought about it, what led today, we were talking about this before, when is the last time you heard general electric was one of the leaders? crazy stuff. why do i mention that? because the industrials are all doing quite well, led by

honeywell, which we also discussed. ge finally showing signs of life >> transports are essentially back to the highs again. people didn't like the guidance of fedex, meanwhile the stocks was back up the next day, and without the airplanes. i hear what carter is saying there's some negativity. if you believe you can't put all this money back to work, there's only so much money you can throw into ge. if you have the transports participating along with banks, there's enough for people to like >> you've got the consumer discretionary, two-month lows, staples at two-month lows. >> they're expensive >> carter, thank you, carter worth. >> good work >> along with 30 other people. >> we have zenith. >> everybody has zenith. >> come on coming up, check out the biotech stock right there,

tanking more than 80% in the after hours session. we'll tell you why and give you, get this, another biotech name traders are betting could see similar moves. plus ceo gone wild shocking words from the head of kb homes all caught on tape. but he's walking away with a slap on his wrist. does the time fit the crime? the traders weigh in tim seymour stepping up to the plate to deliver his fast pitch. much more "fast money" after this when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

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welcome back to "fast money. xlping sinking 1% for the second straight day household names like proctor and gamble really took a beating this is the group's worst two-day stretch. is the so-called safe sector suddenly dangerous >> quite frankly, i never thought it was all that safe i thought it was expensive with that said, these stocks have all gone higher let's talk about proctor and gamble quickly peltz does extraordinarily well for himself. but he's playing in the deep end of the pool with procter &

gamble i would love to see him effect change i'm not certain it's going to happen i do think, and jim cramer disagreed on air, and i respect jim, it's an expensive stock i would be looking to take some profits in the name. >> yesterday on the back of the fed's decision, we saw a sudden almost 1% move in the dollar index, tim could this eventually bite this group in the behind? >> it could if the dollar goes back to a hundred and we start talking about multinationals having a big deal. the dollar to me should be bottoming. i don't think the fed is that far off from other central banks. multinational risk for the dollar, no but multiple risks from these games. as guy is saying, you can only squeeze so much profit out of these companies. clorox is a cash machine but you don't buy it here. >> to think a lot of these names trade at a higher multiple than apple. >> right what is the environment that we have out there everybody who comes on says

we've got this globally synchronized recovery, whatever it is, the fed is going to be raising rates. where do you want to be in that environment? you want to be in the cyclicals, in the industrials you don't want to necessarily be in the staples that are going to be exposed to a higher dollar. i agree with tim, you'll have to see a much higher dollar but it seems like the market is rotating out of these, betting that these are going to have a headwind and you would rather be -- >> the chart of the xpl is an epic 54, where it's at now i know that johnson & johnson is not in the xlp, it trades at a similar multiple i think goldman put a sell on that yesterday you don't see that sort of action by the analyst community. coca-cola obviously is one of the biggest stocks in the xlp. they haven't grown earnings or sales in five years. it trades 24 times to me, i just don't get that >> i stay long in coke

the company is slowly turning around your point is a good one you must believe rates are going a lot higher if rates stay low, these names stay expensive and people own them from stocks in the gutter to a gutter mouth, the ceo omg moment that all wall street is talking about. jeffrey mezger of kb homes getting a slap on the wrist after audio of this shocking rant toward comedienne catkathy griffin was made public this week >> your call to my grandkids at 9:00, you're not even the [ bleep ] owner. you're stuck with a [ bleep ] bald [ bleep ] that donald trump put the heat on. now you're calling the cops? you [ bleep ] cathy, you're not our [ bleep ] neighbor, you're a [ bleep ] [ bleep ]. >> i listened to that three times today.

>> it doesn't get old. >> the picture of him, he looks so happy and avuncular and he's so angry this tweet from suze orman who called the comments disgraceful and disgusting did kb homes do enough to rectify his behavior or should he have been fired >> you know, look. i'm not going to defend anything o he did those comments are certainly out of line. but that response to me by the company is kind of weak. either do a lot more than fine this guy some of his bonus or do nothing. >> why is it weak? >> because -- >> trump got elected president speaking like that for a year during his campaign. >> that's irrelevant >> he mentioned his name >> what i'm saying is, in our society that behavior is becoming normalized, when we have our president speaking like that towards people. >> i got don saying those comments are offensive and they shouldn't have happened. i'm saying if the company is going to do go to reprimand this guy, do something. taking away a piece of his bonus doesn't do anything. this is a $16 billion company.

he makes a ton of dough. that's not going to live him where he lives where he lives is changing where he sits. if you think that should happen, do that. but maybe this is just a dispute amongst neighbors, this goes on all the time >> they are neighbors. we left that part of the story out, by the way. >> listen, have i cursed before? >> like .4 minutes ago yes. >> i'll say what's more offensive to me than this, what happened at equifax. much more offensive to me. why? because they clearly knew things months ago and things that should have been in my opinion made public months ago >> the ceo there, what do you do >> honestly, we're going down a path -- my answer would be somebody should go because the only thing they had to do was secure the confidentiality of all their client base and they screwed it up >> that has to do with the running of their business. this had nothing to do with the running of kb homes.

>> every ceo has got a morals clause, right? >> you yell at your name with profanity and -- >> this damages the brand. that's the issue to me, the 25% bonus cut seems like a pr move type of thing, they're not going to fire the guy, we've got to do something, so they did that i'm more in guy's camp equifax is a much more egregious problem for the company. i'm talking about running a company, the equifax ceo has a real problem ahead, tim is gearing up for a controversial fast pitch he's got a name today. but he says the run is not over yet. he'll explain why. i'm melissa lee. you're watching "fast money" on cnbc, first in business worldwide. meantime, here's what else is coming up on "fast." strangers are betting one biotech stock will either collapse or double next month. we'll give you the name and how to profit. plus -- mark wahlberg.

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welcome back to "fast money. here's what's coming up. it's do or die time for one biotech stock that traders are betting could either double or go to zero in the next month we'll give you the name. plus tim puts his toe to the rubber, getting ready to pitch a stock for a major turnaround we'll see if he can get the other traders to believe first, the ten-year yield

hits its highest level let's get to bob pisani, hey, bob. >> reporter: melissa, rates have been racheting up. the yield on the ten-year treasury hit its highest levels in a month today the two-year yield hit its highest levels in nine years yesterday. this recent rally began two weeks ago after the ten-year yield hit its lowest level since the presidential election last year so the yields jumped dramatically after trump's victory. but they began dropping off in march as the prospects for tax reform and infrastructure spending began to fade but yields have been starting to rise again as trump has made progress on lifting the debt ceiling and the dollar has stopped dropping so stocks have reacted to these rise in yields bank stocks are up 4%. citigroup hit a nine-year high today. utility stocks, which usually move inversely with yields, are down about 2%. fed chair yellen appeared to hint at a third rate hike this year a rise in rates will only take

banks so far, though banks were very cautious about their business during presentations at the barclay bank conference a couple of weeks ago. a rise in rates is not a panacea for everything low growth remains modest, that's an important component. we may have slightly higher rates but somebody keeps buying these bond funds several of the biggest treasury bond etfs have seen notable in-flows in september, including the longest duration fund, the 20 to 30-year treasury etf they pulled in almost 25% of its assets under management. what's that all about? the seven to ten-year treasury, that's bnd is the symbol -- ief, i'm sorry, they also pulled in $300 million there's still interest in buying these funds. back to you, melissa >> thank you, bob pisani will rates continue to rise and if so, where do you put your money? we've been head faked into this before, guy, we think rates rise

and they do initially and then they don't >> i think we're in another head fake elt traded okay yesterday and traded okay today. the one etf that should have in my opinion gotten what could was the xlu and it closed unchanged on the day it's still within a whisper of its all-time highs in my opinion, if rates are set to rachet higher, xlu should be a lot lower as should tlt and you're not seeing it in either >> the yield curve, the short end of the curve, is the flattest it's been in a long time you talk about xlu xlu is somewhat of a defensive play in this type of environment. flat yield curve generally means the economy is going to be getting weak er to me, i would be concerned. you've got to think, has the global economy changed that much in two weeks i don't think it's changed in one built. the yield curve has. it concerns me about the banks they've had a tremendous run i would not break it out right now, i would let them consolidate. it concerns them on the tlt as

well i wouldn't be surprised to see that >> i sit on the board of an nlp fund i think energy has recovered in a way, the yields on these names are really extraordinary 12, 13, 14, 15%. but if you're looking for places to find yield, the energy space across the board if people suddenly had gotten less concerned about the overriding risk. >> i would just add that, you know, we were talking about consumer staples before. we know they have some decent yields there you said if rates stay low then you probably want to stick around and buy this dip. i think at this point, at this stage of the raily, investors may start to reconsider growth, right, versus yield. we talk about growth versus value all the time and growth has really won out in this environment here would you have bad value and no growth. and that makes me very nervous >> what's bad value? >> if you're looking at coke at 24 times with sales and earnings >> that's actually not value

>> i understand, but then we can look at ge, trading in the teens, below market multiple, not particularly growing >> bad value is something like a gm or a ual, because these are cheap, cheap stocks. in the case of gm, we're almost at all time highs again. in the case of the airlines, they're very cheap >> why is gm bad value we're going to talk about gm more >> because i think people have been wrong about the oem auto place. >> okay. coming up, biotech stock tanking in after hours we'll give you the name of a stock traders are betting could see a similar fate plus tim has made his way over to the plaza, warming up to pitch one stock up 8% today. could it go even higher? he delivers his fast pitch much more "fast money" still ahead. most etfs only track a benchmark. flexshares etfs are built around the way investors think.

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welcome back to "fast money. time for everyone's favorite segment, the fast pitch. the traders here on the desk will vote on whether they're buying the pitch

>> i'm talking about andarko i want to tell you why i'm buying it. it's a contrarian play, for upgrades in the last few days. the stock was up 7.5% today. deutsche, wolf, citibank a few other folks noticed the $2.5 billion stock buyback the timings are a-changing i've talking about it how these oil companies have been run for the debt holders it's about a virtuous cycle of giving back. ultimately it's a company that to me is breaking even at $50 oil. strong cash flow this is a case where you've got $50 oil, i've made this claim for a long time, i think we're in a $50 oil environment, especially with the dollar where it is. it's also guided the 2018 production stays where it is you want to look at a chart on this thing, yeah, i know, we've

had about a 10% move off the bottom, big deal this right here takes you back a year this right here, that's at $50 oil. so it's not as if this company is reflecting a lower oil price environment that it can't trade at here. but most importantly, this company now gets it, okay? this is not the end. this is the beginning of a new approach to running free cash flow positive, lower capex, lower growth, and a lot more conservative play for equity investors. i think you stay in this name. in fact these upgrades tell me a lot of people feel this way. >> bk has a question >> it's more about trading style. you've got these upgrades, the news is already out. what makes you think there's going to be another catalyst we've seen oil trade in a range. now everybody said, okay, this is a great buy what's the next catalyst >> great question, brian i don't think even here you're getting a response from higher oil. just oil alone, maybe everybody's not on board with this theory, but my view is, we're in a 50 to $60 oil

environment, not a 40 to 50. that alone is taking some time to sink in it hasn't fed back into all the names. exxon are the only places the flows have come. the nlps haven't seen it they had an investor date. you need to listen to management a $2.5 billion buyback tells you these guys are very serious about changing their game. that's not an overnight move there's a lot more there >> i won't give it up to say which way i'm leaning but i'll ask, obviously you think that was the best way for them to spend their cash hoard my question would be, given some of the diminished price of a lot of assets out there, would they have been better served to buy something? >> i don't think so. again, buying implies growth, guy. this is more about cash flow generation and playing for the equity investors i think stay away from aggressive growth right now. it's not what you do in this industry >> let's vote. who is buying or selling tim's pitch on anadarko?

>> for me, i actually agree with tim. this is almost a perfect chart apc, which means you buy it. i would like to see it consolidate for a couple of days, that's why it's almost perfect. >> bk, you're not just a pretty face, but i'm also a beyuyer he. i would use a $45 stock to the downside that stock was trading just below 45 yesterday, it seemed like an important technical level there. buy it with a 45 dollar stock. >> the clean sweep with me, only analysts getting on board, highly levered play. apc should go in >> not a clean sweep until we've gotten the folks at home >> that's true, you at home, we want to know what you think. did you buy tim's pitch for anadarko we'll reveal the results later in the show. plus a key event in the next few weeks could send one biotech stock surging by more than 80% refa meyafthr is

the bottom line is, for your goals, this is a strategy i'd recommend. huh. this actually makes sense. now on the next page you'll see a breakdown of costs. what? it's just.... we were going to ask about it but we weren't sure when. so thanks. yeah, that's great. being clear and upfront. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

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welcome back to "fast money. versartis taking 80% in the

session. if you own this stock, you're in desperate need of therapy. let's bring in our expert meg terrell. >> hi, guys. this was a pretty small company, under $1 billion in market cap they had failure on their lead program. they're saying they're going to give a corporate update later this year and kind of see how to go forward with this but that's bad news. and in biotech that happens sometimes, these are binary events for the whole in september, we've seen some bad news in some mature but still speculative biotech names. on the whole, reaction hasn't been that. you can see mylan was down 16% on delivery of bad news, of course yesterday they had great news, their stock was up 50% that wasn't as down as some people said it could be, especially given the year prior, they had similar bad news and the stock was down much more than that. same for sage, their lead program failed in phase iii,

stock only down 12%. for big biotech failures, you generally expect more than that. the same for amicus, analysts saying that's invest in the next thing. the thing that's different from these three companies, they have more catalysts coming. what some people point out is that biotech investors are kind of buoying even on bad news, there's optimism in the sector right now. that leads us to one of the biggest catalysts, axovant sometime before october we're going to get these data, and the expected reactions that the street is laying out here are insane if you look at jeffrey's scenarios, they say the stock could go to 100 on blowout great data, down to three if the data are bad. somewhere of course in the middle of the data are mixed everybody i'm talking to say, we

don't expect it to be a blowout. i said, are you going to short it they say, heck no. david hung sold it after a massive blowup in alzheimer's in 2010 people say even if this doesn't go well for him, this guy has something else up his sleeve >> what's the market cap of that company? >> 2.8 billion >> thank you, i didn't look it up >> that's a pretty big swing for a $2.8 billion company >> it's massive. the big cap biotech names, who has the best core business but has the most of these real estate lottery tickets, you call them upside, whatever we want to say they are so in other words, to me, the best combination of growth and consistent business. >> my gosh me >> you're the expert >> hmm >> forget the big cap ones

you just gave us a list of names that didn't move as much as investors were expecting one of the things that's really interesting when you look at some of these smaller names, what are the probabilities of these outcomes when you're talking to bankers, analysts, traders, do they say expected 10% probability because that's how we make decisions on stuff like that >> yeah, the probability of success is about 60% you don't expect it to go to 100 but it's possible it could i talked to an investor who says by the end of the year the stock grinds higher because of things going on with the ceo. >> we want to get the options action on axovant because it's an interesting sort of activity. >> it's a name that wasn't on my radar. i find these situations pretty

fascinating. what do we do to figure out what the implied movement is? megan said the next listed option is in october with the stock at 26, i was looking at the $25 straddle in october. it was offered at $22. that is almost 90% of the stock price. so basically, if you bought that straddle, then you're buying the implied movement in either direction. you need the stock to go from 25 to three to the downside to make money or from 25 to 47 to make money. now, obviously the much better trade is to the upside, right, because we know that the stock can go to infinity and it can only go to zero. at the end of the day it's a pretty interesting setup i talked to one trader who said that $100 outcome is probably a 10% probability and for that, he owns very small out of the money calls. on the straddle you could lose a lot of money if nothing happened and that stock closed at $25, you would

lose $22 >> out of the money calls, relatively, are really expensive. >> it's a tough one. >> watch what i do here. stop making faces. medusa, the head of medusa, everybody tried to get the head of medusa and failed medusa is alzheimer's disease. i don't see perseus out there. >> people are unsuccessful >> unnecessary metaphor. >> it's a great metaphor >> it's okay >> medusa? >> thank you, meg. meg terrell. by the way, for more options action, check out the full show tomorrow at 5:30 p.m. eastern time still ahead, our very own guy adami, mr. medusa, caught up to mark wall berk ahlberg and p.

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welcome back to -- excuse me [ coughing ] >> let me have a drink of water here >> hey, that's the water that -- that's a fancy water i know both those guys >> you know markey mark. >> and sean coombs >> come on, stop it. >> oh, yeah? roll the tape, sister. >> two great business minds coming together with a product that's in a pretty crowded space. sean, i'll ask you what do you think differentiates aqua hydrate >> we're a marketing beast we're very competitive and we know how to connect to the consumer and that's the thing i feel gives us that edge we're number two in our category and we only like being number one. so being in business with us, this is, number one, we're not just celebrity endorsers we have skin in the game we're investors. we're owners >> is this for endurance

athletes is it for high performance athletes or just guys and gals on the street >> it's for everybody. >> i would say light performance. we look up to athletes but us as just individuals, we go through so much, and being conscious of what we put in our bodies is something that i think is on everybody's minds right now. >> you guys must get pitched investment ideas i would imagine all the time, given your platform let me ask you a question. how did you -- it just worked 4 and you said i have to get involved >> aqua hydrate chose me, i'm training five hours a day for "the fighter." it's the only thing i changed in my entire routine. i was having a hard time getting out of bed, the next thing you know, i'm running six miles, eight miles. i got the benefits right away. >> did mark call you and say, sean, i got this great product how did you guys get together on this >> i saw him, he was in vegas at a fight. he was holding this bottle of

water. and it was this blue bottle of water. it looks like, you know, i mean, he's so good looking, i thought he had some magic in there i was like, what's in the bottle he explained it to me, it was something that very attractive to me, to be in business with somebody with his work ethic, that was an entrepreneur and expanding in his time, we have a lot of power, a lot of eyeballs on this, we get a lot of traction what are we going to do with that as businessmen? and we can't be behind everything, we have to pick and choose quality over quantity this right here is quality product that we stand behind >> interesting, most stars are endorsing vodkas or starting up liquor brands. here we are, water >> sean coombs, you talk about an entrepreneur, that guy's got it going everything he touches turns to gold there is no real trade, but if you're thinking about, who is that guy, 50 cent, he was

involved in that vitamin water remember when coca-cola bought them ten years ago for $4.4 billion with a "b" companies like that need these feeder companies >> back to coke, whether it's these lifestyle brands, these vitamin waters, that's where they have to go, because the carbonated soft drink world is dead coming up, are you buying tim's pitch for anadarko petroleum? it appears some of you are, the stock is up 1% if you haven't voted it, head to cnbc on twteitr. we'll reveal the results right after this

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welcome back let's get the drum roll going. yes, because it is time to reveal whether you at home bought tim's pitch for anadarko petroleum. you know what happened in 1996 toni braxton's song speaks to our collective sar rorrow and pn america passed >> he sold all of us >> he sold all of you guys >> i don't want to see anybody right now. >> time for the final trade. tim? can you get it out >> i just hate to be alone right now. anadarko, i'm staying with the horse that brought me, you should too >> bk? >> as much as i love the tesla, i think here you've got to take some off and sell tesla. >> amd we mentioned the other

night. >> the world didn't get any safer overnight, raytheon comes out rtn. >> i bet sean. >> how about mark? see you back tomorrow at 5:00. meantime, don't go 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 money. my job not just entertain you but teach and coach you. call me at 1-800-743-cnbc or tweet me @jimcramer.