ron crew chefski of steeple joining us today. >> what's on your bucket ist. >> let's get through tuesday's cpi number. >> next tuesday's? yes. >> but i'm focused on fundamental. >> we will check in with you at 8:31. >> i will text you >> perfect i was going the say i'll tweet it to everybody. but i can't. bill will did that stephanie, and michael, for me and bill, that does it for "closing bell. "fast money" starts now. "fast money" begins with breaking news. the selling rages on, and another milestone moment for your money the dow dropping 1,000 points, or 4% in a wild session for stocks incredibly, this is the second 1,000-point drop this week it is the worst week now since october of 2008. right at the heart of the financial crisis the dow, now down 10% from its highs on what wall street calls a correction the s&p 500 also in a correction

the dow, s&p and nasdaq all now negative for 2018. thank you for being with us tonight, everybody let's begin with guy adami guy, after a week of reckoning for stocks we are left with a hard question. is this a healthy run of the mill correction? or the start of something bigger, perhaps a bear market? because i can say that thousand-point drops have really never happened in the market unless we have a serious, serious issue. >> we have never been this high. >> to tim's point. and you know this, yes, at 27 n.o.w. in the dow 1,000 points is obviously different than at 15,000 in the dow. obviously it creates headlines because it is a significant number for context, though, the levels where we are now in the s&p and the dow jones is where we were at thanksgiving. at thanksgiving everybody was talking about how great the market was number one, i'm not dismissing what's going on. what i think is happening here, clear of what everybody has said, volatility has taken over. stocks have become collateral

damage the have tilt this will be over in my opinion when you see headlines about a hedge fund and or some bank's derivative book blowing up i have not seen that yet when you start to see those headlines i think that's the ninth inning. >> tim seymour, we deal in percentages, not numbers and as the numbers they get bigger, if you know what i mean however, this is the fastest move into a correction in the dow's history. the speed, does that worry you >> i don't have my history book out, but yes i don't think guy is being sanguine in any way. i think he was pointing out there are a lot of factors at work here. the me what troubled me on monday, tuesday was that people want to put this in a tight little box and say this was about reversed fixed funds there is no way this is about reverse fixed funds. when people say the technicals on the mabt are what have changed not fundamentals you can't tell me that

this gets into our volatility conversation, once vol has changed so much, equities are a very different investment. whether that's temporary or not. that's the environment we live in and it does affect equity valuations. >> i think this vix change is clearly it's very, very dramatic, but i really do think it's going to be somewhat short-lived. i think to guy's point, if there is some derivative book or many derivative books in the process of unwinding that that will be interesting. but what we've seen over the last 20 years probably spikes in the volatility like this, they come down. they go up super quickly and they come down quickly as well i think we are going to see that here i think we are much more likely to have a down 1,000 day near the time you had another down 1,000 day. that those two things are more likely to happen together than separately. >> i would say what is different over this last 20 year period when you think about the top that kopd in q 1, q 2 of 2000

and in '03 it picked up at highs. and interest rates were much higher if interest rates are the reason we are seeing volatility up more than 200% from the 20 ott low then we have got a problem this this starts to snowball. i'm not trying to sound like we are at the precipice of a crash but i remember those tops clearly and there were periods of euphoria that went into them. >> levered. >> there is still a lot of leverage >> look at the financial system now. compared to 2007 in terms of leverage in a all that corporate debt has been transferred to sovereigns it's more dangerous, in my opinion. when the thing finally blows up it's going to make 2000 and 2008 look like a walk in the park don't forget this. the bear market that we lived in in 00 didn't end until march

2003. >> can i walk you down a little bit. i kind of agree with you i don't agree that this is going to look like a walk in the park. that was nightmare on elm street ultimately we have a case where the ecb hasn't made a move the bond made a move, the ecb is further behind the curve they are the ones when they start taking the rates higher, they have said nothing about tightening when they do, our rates go higher what there is is the biggest experiment ever. without trying to scare everybody, the reality is there is more liquidity squashing around there than ever. >>ert that 15 to $20 trillion on central bank balance sheets, which we have never had before. we also haven't seep this ind of a market in years. we have a lot of financial advisors who never rate operated in a rising interest rate environment. last time we had one they would

have been in college or getting their mba. they never managed money in this period forget the numbers we are seeing the dow move 2% in 20 minutes. >> i would add on top of that the passive investing, which is whole different conversation but these roboadvisors as well it's great on the way up but on the way down i don't know how it's going to work frankly, nobody knows how it is going to work because it hasn't happened yet i'll add one more thing to this equation again, i believe, correctly or incorrectly that all consumer confidence is is an overlay of the dow jones industrial average. say i'm crazy, say i'm not but the two basically trade hand in hand at what point does consumer confidence take a dip down and a pull bakken spending our economy is 70% driven by the consumer if the consumer eases back on top of the stock market move then it crumbles on itself >> what put us in this

situation. .3% gain in wages in the last payroll number corporations passing tax cuts through to their workers a great i think this if anything, that front loads a lot of this disposable consumption story. to think that central banks first of all can control the bond curve we know the fed cannot control the curve. it controls the fed ultimately to say this can be an orderly move in intrarates -- i don't want the scare anybody netflix is up 30%. >> fundamental don't matter in this atmosphere. >> getting back to technicals you have a lot of stocks that didn't move anywhere near where they could move. >> they do matter. >> facebook, google, apple down. snap up 20% yesterday. twitter up 20% they are buying it for a reason.

fundamental inpuchlt it was a fundamental input that got people to sell apple and google last week. fundamentals are important cramer has been saying this all week at the end of the day. -- >> i would like to agree with that and say i'm hearing too much it's about technicals when i don't think it is. i think fundamentals are changing in front of people's eyes. >> we are going to start see dispersion you are going the see companies rewarded for good valuations and good fundamentals it's going to be separated from what's going on in the market see relative strength. those are the names you did off on the long side. >> tim, you said it's impossible it's caused by the short volatility product. >> i don't think it was. >> we disagree 100% with that. >> i do, too. >> barically's put out a note two days ago saying they thought $200 billion in stock could be sold over the next couple of days to pay for continued

unwinding of this volatility trade. is it possible, improbable or possible that this whole thing is being caused pie a couple of idiots in a dark corner of the stock market. >> no way. >> two has to the broader than that can it cause the whole thing no but i think it can contribute significantly. this reaction -- i think you flow a rock into the water and it ripples a lot and then it calms down i think that calm, those fundamentals i think it does matter today i bought intel they had great fundamentals dan two week ago i know you think some of the techs didn't have great fundamentals they did. >> i know. i bought it at 44 there it was trading above 50 this after they reported a great q 4 and i bought it. >> it's 43 and change. >> nvidia is up. >> what she is saying is look beyond this period we may remain volatile, lower or

higher, but you still have to put money to work. >> you but have to put it to work tomorrow. we may be putting money to work in a higher volatility environment for a substantial period of time also at a higher interest rate environment for substantial period of time which changes equity valuing as. >> let's continue the conferring the next guest, called this pullback and provided a game plan for what to do had he it strikes. listen >> okay. here's what you do if you are way over weight and leifered into equities, cut back to a neutral position. if you are weigh overweight the more aggressive and high cyclical areas, neutralize a little bit when the market does come n it's coming in now it's coming in i really believe it's coming in. then you can add into it versus you can relever into it get aggressive into it versus chasing here. >> let's bring in tony i have got apologize, as part of the media we are looking for blame in this.

right now it's past the point of trying to figure out what has happened and more to the point of when does it stop, and what do we do do you see any kind of a -- had he we are losing 400 points in the last 30 minutes of trading and enon our lows of the day it tells me tomorrow may not be the end. what are you seeing? >> i think that has to with market strurmt let's talk about the etns, is it the volatility trade? that's the gun you need somebody to shoot the gun. to shoot the gun you need record low volatility for a record low period of time so it was an easy trade in human nature. this is a human nature game even if software programs are kicking it in. what you had was way too optimistic of a view rememberer what's not in that quote is you were down to 12% news writer letters being bearish. when that happened in the past guess what happened? what happened? when you get that kind of bullishness with that kind low volatility and sentiment -- >> the market became an annuity.

>> what the trigger is, yes, you have higher rates. i have got two times this cycle, 2014, 2016 where you had inflation break evens higher and trending higher and trending high higher -- and interest rates doing the same thing there was a combination that came together. i believe brian this gives investors an opportunity we have a steep yield curve. we have earnings per share that just keep going up it's like one of those things. the data that i can fine, just the give perspective to the viewers i went back and looked at times where you had a ten-day rate of change on the s&p 500. in other words, what did it do for the last ten days? let's forget about opinion and go with the data the only times that you have had such a significant rate of change down ward in ten days were 1987, 1997, 199, 2 to 0, 2002, 2011, low, 2016 low.

today. what do you want to do i'm promising you it's going to stay more volatile that's the history of it when you look ought two, three, 12 months we are going to be up. until you invert the curve, shut down credit totally not because the equity market is down, but totally shut down credit, we are going higher >> tony, one of the thing you said -- spot on. without question one of the things you have said is this will end badly and your time horizon for it has typically been 18 to 24 months for it there any chance whatever is happening here, that we all have disagreements on is systemic and this end badly, are we -- are we potentially seeing that now? or is it way too early to tell >> i think that we made a top. clearly we made a top of that's an idiot statement of course we made a top we are down 10% in a week. the top only comes with the inversion of a yield curve in a credit driven recession. we are still -- because it's

steepened we are still nine the 12 months from that. from there you go 15 to 24 months before you go into a recession. so, again, i think this is one of those times where i hate to be on set and kind of sound like it's no big deal it is a big deal people are losing money. it's down 10% in a week. that is the opportunity as long as you stay with the game plan the game plan is you wait for the correction and buy those areas that do well. >> tony agreed but from a valuation perspective, higher rates and a falling dollar make the dollar of earnings worth less do they not? >> the call i have had on the desk, the call i have had with the clients and the call i'm going to make right now is the dollar moves relative to global growth expectations, not interest rates tim has been on this a lot he knows this trade. i neutralized my dollar view i was negative on the dollar a year ago tim and i -- now everybody is negative dollar.

when you have global synchronized easing that's global growth friendly the there are a is going the weaken when you have global synchronized monetary tightening you are going to slow down global growth and you are going to eventually hit emerging currencies i'm neutral dollar, neutral em over dm, neutral dm over u.s i think as we are transitioning you want to be neutralized in all those things, stay in the u.s. and have a solid exposure in the info tech and industrial space. >> thanks for coming on here. >> thanks for pressing me to give that statement. >> karen, do we -- it's hard to -- tony made great points. >> yes >> when you are at home and you see the dow down 2,000 points in a week or more it's hard to stay the course. >> right. >> what's is your advice >> mine is absolutely not only to stay the course to extent that you have any cash that you have been waiting for

something to use kudos to tony for an outstanding call a couple of times i would be putting that to work right now. it's interesting that our emotions i think tell us to do the opposite of what we should do stay the course. >> i agree with most of that i agree that i don't think you have to do a whole lot here, frankly. i do think this is setting up for an interesting buy opportunity. i would be more cautious on my timing i just want to see more dust settle i think there is a lot of moving parts here, which includes high yields breaking down there are other place where is the conditions are tightening and the dollar hasn't started the move you can't time any of this no one is going the rinne a bell if anything i would border on doing less than more but i think there is a lot of moving pieces that i don't need to chase tomorrow. >> i don't think you buy kilos like today you want to buy a down opening after a day like today after some reversal and that should make you feel better about it. it all makes sense the only thing i take issue with

is if you are long and haven't sold anything and it's down 10%, it doesn't mean you have to buy anything to my eye it looks like it's going to 2500. and huge support is down at 2400 and that's where i want to really reload hard. >> good stuff there. for more on the markets be sure the stay tuned here of tonight tune into cnbc's special report, the markets in turmoil a few us will be there at 7:00 eastern time. coming up on this program, fur worried about bonds taking down your portfolio, do to the panic. you shouldn't panic anyway we have got you cuffed greg davis from vanguard will be here to break down dos and the don'ts. plus apple is doing something that has karen finerman buying it for the first time ever. will that convince you to buy the stock? stick around the find out of the. later on we are obviously all over the after hours action

as well. nvidia reporting their numbers that stock is up we will get you for and details from the call. much more "fast mone sait ead.y"trgh at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest. ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them

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welcome back and welcome to our friends in

asia and europe, because we are simultaneous casting cnbc around the globe. let's focus now on the stock that is certainly known around the globe of the that is apple of it stood strong much of the day but succumbed to selling later on apple also in technical correction, down 14% from its 52-week high and something had karen finerman hitting the buy button on the stock today for the first time ever karen give us your past pitch on an snooel this is why i bought apple of the as always for me, valuation is really important. and it's the top of my list. the valuation, if we include the repatriation gets a p/e multiple for this company that is dramaly below the s&p multiple i think it somewhat, but not a discount of over 40% to the s&p multiple that is significant to me. to buy a company with earnings like they have, i real they can lmpy but that discount seems excessive the me

the second thing that i like is expectation force the x has been tampered that's good. we like when expectations are low. it's easier for them to meet them or surpass them the third thing i thought was interesting was the services revenue, a mice high margin revenue they have done a better job than i thought apple music i've been impressed with the competition that they have set out, with spotify, they are overtaking spotify that's been an impressive growth driver for them. i think we will continue to see more of that let's look at the the chart. the last six months it is retraced here. all of -- anything past northeast. -- past november all of that benefit of tax reform is gone from apple and this is going to be a significant driver for them. putting all of that together, significant selloff, i think it's time to buy an snooel karen, what do you think is more important margins or for these guys the top line?

people are divided on the company? >> obviously both. the me i kind of like mother-in-laws better. that's more important. i also like recurring revenue better that's more important the me so that's what i would be hoping for and i think will drive the stock. >> on the margin front this was something that was evident, obviously they had great margins but at the expense of their customers. we had a conversation about consumer discretionary spending. did this company ratchet up the price of their phone -- one of their phones at a time when maybe consumer discretionary spend has topped out does that worry you as far as margins are concerned. >> i know it worried you for a long time. expectations are lower now i think the consumer is in good shape. i'm not overly concerned about that of the at least at this valuation i'm not. >> no more questions it is now time to vote are you buying karen's pitch on annel? >> who are you asking? >> you

everybody. >> open-ended it >> i will go first. >> can you start out and i'll follow you. >> i'll go first i'm with her everyone wants to own apple on a pullback the market provided you with a 14% pullback this time we have seen that historically kit go down another few dollars? absolutely but this is a level where you can dip your toe. >> dan. >> i'm with her, just a little lower. i think the important point is the cash on their call they said they are going the get to cash neutral versus their debt of that's $165 billion that they are going to return to shareholders if you see the stock below $150 that's where i am a buyer but she's probably right. >> i'm also a buyer. like dan, a lib lower. i have $140 on there i think it is a good stock. capital, ma. i think they benefit as much as anybody on this tax deal and they aring go to be doing more for investors. >> folks, does karen's pitch have you buying apple stock?

log on to twitter @cbs "fast money. vote and our poll. in the meantime here's what else is coming up on fast. this is your portfolio this is the market and this is what's happening to your money and we'll show you how to protect it for close to together in plus, how are some hedge funds bidding the market. >> what is a bitcoin >> bingo and we will talk with one of the biggest hedge fund managers in a rare interview when "fast money" returns.

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u.s. ten-year yield breaking out to new highs, 2.8%, the highest levels since 2014. this of course causing pain for investors who own bond funds which may also be reeking havoc in stocks. let's go to babb pisani for details. hey bob. >> bondville i like that. bond yields are starting to become a headache for the stock market, brian. the original trigger behind the selloff of course was friday's jobs report. higher wage growth led to a spike in bond yields and that spooked the stock market that makes sense. but bonds became a safe haven play on monday and pushed yields down tuesday and wednesday yields rose again and into today. a prolonged spike in yields may lead, finally to this long awaited selloff in bond funds. we have been waiting for this for five years, but it hasn't happened at least not yet

even with the latest market volatility, bond flows for u.s. funds have been positive believe it or not for the first five trading days of february and they are only slightly negative for international funds. none of these numbers you are looking at are statistically significant of it's the stock market that hold the key to bond market flows if the volatility continues in stocks bonds may see big inflows as a safe haven play as for stock funds, there have been modest yoet flow this the first five trait trading days of february, 22 million that's not much at all, not statistically significant. interestingly, most of the outflows have been in the biggest eft of all, that's thesider s&p 500, spy. this is the eft most commonly used by institutional traders to get in and out of the market quickly. it tells pea much of the selling is institutional if the volatility continues we

will certainly see retail traders selling their efts, particularly those who pumped $70 billion into efts in january. brian, i estimate the average s&p price is at least 100 be points above where we are right now. lot of people are 4er to 5% at least under water who bought s&ps this year if you are questions or concerns about bond market you are in luck greg davis is the head of the world's largest bond fun he is vanguard's chief investment bond officer and joins us now with key advice before the advice part, i have a question part. does the market route for equities, does the market route for stocks mean the fed is less likely to raise rates three or even four times this year this we are expecting the fed the ray rates three times this year. but it really depend on what happens with financial conditions and how the economy evolves over the next several

months right now i think the fed is on its targeted path of doing three rate hikes this year. >> the stock market is not the economy. it may be a small report card but it is not the whole thing. do you think that this market slide changes the calculus of the economy, weaken as strong economy, that could then change the feds' thinking >> i think we have to keep it all in perspective we are down 3.5, 3.75% year to date and the s&p is back to levels we saw around november 20th of 2017 so, you knownoknow in the grande of things the market got overheated, too far ahead and valuing as were stretched. it's natural to see a about it of a pullback in an environment where you saw treasury yields rise from 2.4% at the beginning of the year, to the 2.80, 2.85 level. this downturn in the equity markets should be a bit expected given what we've seen in the bond market. >> it's karen. let me ask you something where do you want to be in the

curve? where do you think the most risk is >> you know, when it comes to positioning, you know, when you think about where there is risk, clearly, the fed has, you know, communicated they are on track to do three rate hikes this year, and that's pretty much been priced into the market. unless there is some substantial deviation from what is already being priced in, you are going to be pretty much neutral on the shorten of the curve the question mark becomes what happens with inflation if inflation expectations really start to pick up, that's where the long end of the curve would actually be at risk. when we are looking at where ten years are right now if the economy continues to do well, labor market conditions continue to tighten and we see the levels of earnings rise, you know, you could see a bit of an increase continue in the ten year part of the curve which we have seen so far year to date. >> greg a lot of people watching tonight have bond funds. in bopped funds. they are going to open up their statements and see their bond funds are disrupted to say the

least. any words of wisdom for the guys and gals watching at home? >> we think investors need to take it into perspective you should never drive your investment decision over what happened over the course of a week or two. in the gran scheme of thing if you have rising rates for most long term investors if they are reinvesting those coupon payments and those principle payments over time they are better off in a rising yield environment in the long run provided they are not the dated bond funds but for most investigators rising rates is a good thing for them >> credit shouldn't be doing poorly in a economy still with relatively low rates. >> high yields tend for highly correlated with what is happening in the equity market it is a sign that you have the risk off trade that's happening in the broader market. we have seen high yield cdx widen 50 basis points or so year to date but investment grade

spreads only widened 1 basis points when you look at idcgx. the high yield market is highly correlated with what happens in the broader, ma. >> greg, thanks for bringing a little calm to the market. >> great to be here. >> guys, what are we thinking here. >> first of all, that is a calm beacon of light in the storm. >> it's good, because they manage a couple trillion bucks. >> they know what they are doing. i think it's interesting to hear him say he thinks the ten year cold could continue to go higher if we continue with these trends in the market which is going to scare people more. >> guy, do you think that the fed could change it's thinking on rates if the stock -- if everything else stays the same, the economic indicators are good, unemployment continues to tick down, inflation is somewhat in control but the equity market slides, does the fed change its view on rates? >> you asked that question and we had that conversation with

steve liesman the other day. he said the fed absolutely will keep their eye on the equity market my pushback is why it shouldn't be part of their purview. he says it's part of the equation i think the federal reserve should raise rates four times based on the date. if they don't because the market is going lower the market isn't going the like it this time. it has in the past but in this environment the mart doing to say wait a second what do you see that we done see i think in both scenario you could make a market negative outcome. still ahead all of this volatility may have you wondering how to protect your money. dan has a way you can do it for close to gt nothing. he will show that to you later on in the show. plus what is the only thing crazier than the stock market right now? it has to be crypto. one fund manager says the bottom is in. you may want to listen to him.

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>> he webb to "fast money. bitcoin crawling back above $8,000 today despite some of the recent crypto carnage bun industry is still betting big on the space that is hedge funds. leslie picker breaking it down for us back at cnbc hg

>> cryptocurrencies were a bright spot this the hedge funds last year. and then the sell off took hold. as bitcoin plunged in january so too did many of the hedge fund that trade these things. new numbers out from hfr show that cryptocurrency funds declined 9.22% during the month. that compares with the broader hedge fund industry, which was up 2.82% and the s&p 500, which gained 5.7% so this is a 180 from last year, with crypto funds collecting more than $2 billion in assets under management and posting average performance of about 3,000%. by comparison, the best performing hedge fund we tracked gained 77% last year is this still the alpha generating strategy investors were clamoring for last year for one, crypto hedge funds need to be able to hedge or bet on the digital asset's decline as well, while still generating

those outsized rurs. one fund is showing it's actually possible to outperform even when bitcoin slumps look at this chart of pan terra national capital up 140% net of fees while bitcoin trade lower the firm's bitcoin fund has returned a whopping 25,000% since it launched. and it's ico fund returned 149% since july of last year. pan terra has become such a large player in icos it has actually had to raise fees to 2% management, 40% performance in order to reduce inflows, brian >> that sounds like one of them good problems, leslie. >> absolutely. >> thank you >> thank you. >> speaking of the aforementioned pan terra, the fund, not thend about, let's bring its founder and ceo, dan moor head. you have heady numbers there,

dan. by the way, also, back i think in mid december you said bitcoin could call 50% get what, you are almost exactly right. that's about what it's down from its highs. what's your strategy now >> we are certainly aware it is a very speculative market and it's volume till on the up side and can be volatile on the downside we have had a 64% fall from its peak to the trough a couple of days ago that's also exactly the afternoon decline in the bitcoin market over the last seven bear market cycles. the past doesn't redakota the future but it seems like this is about the right downdraft. the other stat know is it typically has had on average a 71-day bear market and we are 52:2 days into it. seems liker in couple of weeks and it could start growing. >> why in a couple of weeks? what is going to normalize about this market then >> well, i think the fundamentals are fantastic and we can go over those

separately but there is such an institutional appetite to get exposure to this it is a half a trillion dollar asset class that nobody owns that's a pretty wild circumstance and it's also got a 0.1% correlation to the last of the financial, ma. greg was talking about risk on, risk off almost everything else in the world is highly correlated either close to plus one or negative one and bitcoin is still so underowned by institutional investors that it trades to kind of its own beat. >> dan, it's karen let me ask you something how do you think about potential pending regulation is that a good thing or a bad thing for the space? what do you think. >> it is a good thing. i think the u.s. regulatory bodies have done a excellent job. the irs ruled on bitcoin many years ago it was property. so you get long term capital gains tax treatment if you hold it more than a year.

the cftc has been aggressive about this now we have cme futures on bitcoin. the s.e.c. ruled a few things are securities and should be registered but in general has allowed the market to develop. so the pace so far has been very good from the regulatory bodies and a little more regulation is probably helpful. >> you just mentioned futures being listed in early december has that changed the game a bit? has it made it easier for you to accept capital inflows and expand your capital base and put it to worked >> yeah, i think the futures are a he very small part of the industry it's a much like the fiat currency markets it's almost all exclusive cash trade asking not much in futures. >> dan, it's very interesting when you think about what's been developing on the platforms. i'm curious what part of the crypto, is it the tokens or the platforms themselves and the developers on those platforms that gives us the most interest right now. the big currencies are interesting to trade, and our

long term hedge fund trades bitcoin and the big ones the most interesting are the protocol tokens, icos because they are like the small caps of the industry >> well, the window shut down. dan moor head at pan terra capit capital. those are not bad numbers, guys, unbelievable >> stunning to be honest with you. they were earlied a equities vo. to his he credit, 20, if you see the admit of that fund he didn't just jump in lately. it is a fund that's a well-known hedge fund that made a commitment to this a long time ago. >> four and a half years old is a long time ago in crypto? >> it is a lifetime. >> i guess that's where we are anybody here do they agree or disagree that thing are going to calm down from here? >> when karen asked him about the regulation when you hear guys who are accepting capital, charging two and 40 they think this is an asset

class that we can grow to a $40 billion fund the regulation is their friend there is a wall of institutional money coming and that guy is there and willing to take it from you. >> checkout out nvidia soaring in the after-hours session the conference call is underway. you won't believe what the cfo just said about crypto plus, can't take the heat? don't worry. we have got a way to protect your portfolio for cse tloo nothing. we will tell you how to do that when "fast money" returns.

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welcome back to "fast money," we have an earnings alert on nvidia. it is surging in the after-hours. let's go to josh lipton in san francisco for more >> on the call, nvidia executives talking about cryptocurrencies, the impact of that on their business here's the cfo take a listen. >> strong demand in the cryptocurrency market exceeded our expectations we met someof the demand with dedicated board in our oem business while the overall contribution of contribution to our business remains difficult to quantify we believe it was a higher percentage of revenue than the prior quarter that said, our main focus remains on our core gaming market. >> brian, as for that gaming business, $1.7 billion in the core that was up about 30%, driven by titles call of duty, "star wars," e sports also, and demand for

nintendo switch. and of course concludes. data center business, 6 $6 million. up more than 100%. cloud customers, aws, by due, oracle, ibm. q 1 revenue guide, $279 billion plus or minus 2% the street was at $275 billion back to you. >> josh lipton thank you. certainly the valuation on this stock some would have said high. it has come down with the rest of the market. you heard talk of gaming and crypto anybody a buyer. >> if you see at value go down 10% and you have been shorting nvidia on valuation and you have been wringing your hands and they smoke it on earnings per share, beat on gross margins and through the roof revenues. they should have preannounced this quarter three weeks ago didn't do it stock is up. should be up

valuation will be down. >> how much of this isn't already in the stock people know they are in gaming the crypto element of this, to be that definitive and to try to also put some reasonable around it i thought was smart that may be a driver but everything else we heard we knew they were crushing. >> it's not a big driver they are not talking it up ib they are bisquely saying -- >> it is a part. >> what i'm saying is it's single digits of their total revenue, but it's going the provide upside because it's better than expected but they are not guidinger to it. don't headache this a crypto stock. get in the to the data center, up 100%, and crypto is the cherry on top. >> it sounded like she was washing off. don't buy us because we are a crypto, frosting. >> they have been routinely doing that it outpachled in the first half of 2017. underperformed expectations in the latter half of 2017. here it is again in the first half, doing better in '18.

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welcome back

you might be wondering what is the pest way to protect your long term investments. for that we turn to the options market and a segment we like to call the more you know today dan is aik breaking down what they call a collar strategy >> let's talk about this relative to a stock that you may own that you really love and never want to sell you are in a period like now where it is volatile and you are seeing potential for it to go clear. a collar strategy is against a long stock position. let's use a 100 share unit you would sell one out of the money call against that 100 shares long and you would use the proceeds to buy one out of the money put. you are collaring your stock participating in upside to a certain point but giving some of it up for some potential downside protection. but you also have losses down to that put you would do this because you want to protect a long position. you want to keep the long position intact and want to

protect it you are willing to give up potential upside for potential downside protection. when options are expenses you dent want to buy put protection. that can be a drag against your performance. let's go through. >> kpas of why to do this. let's use amazon it is a wadely held stock. it's one of the stocks that it seams like everybody in the market really loves here i want to hit on a couple other big stocks apple. the thing has been consolidating. and swoosh like that, down 10% let's go over to google. same sort of thing had this big move after a long consolidation. boom, down 14.5% let's go to this one, now. amazon all right. well this stock obviously also consolidated of the it ran up here this 20 1rz move looked so small on this chart because this stock is still up 15%. google and apple are each down on the year. amazon is still up that may be one reason why you are long it. you want to play for upside but

want downside protection because if this stock were to fill in back to where it started the year you have downside broke. let's talk about how we would collar amazon. today when the stock was trading at 13.7. you would sell one of the march 1500 calls at $25 and use those proceeds to buy one of the march 12.50 puts for $25 it cost you nothing and you are protected below 12.50. >> dan, thank you. for more "options action" check out the full show tomorrow at 5:30 p.m. eastern time. up next, our final trade and our first move tomorrow. two, our first mov. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches?

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when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ a quick programming note don't miss the interview with comcast's chairman and ceo, they are coming to you from pyeongchang south korea where the olympics starts tomorrow 10 a.m. right here, big interview on cnbc. >> final trade first thing tomorrow morning >> first thing i do tomorrow, thank you for being here all week you are the man.

allstate insurance >> peeking at square on the long side. >> karen >> apple, if nervous, buy a little friday, some monday. >> tim. >> conviction. for watching. you got to need guidance cramer has it for you. "mad money" begins 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 put this thing in context so call me at 1-800-743-cnbc or tweet me @jimcrame what does it take for a stock to rally? is it even worth the effort to try to find a need