we are live at the nasdaq market site on what has been a crazy day and week, not only for the weather but also the stock market and the guys are getting ready behind us here here's what's coming up on the show boeing shares have been unstoppable this year, but a brewing trade war and scary-looking chart could have the dow stock grounded we'll explain. plus, the words netflix investors hope to hear this weekend. >> and the oscar goes to -- >> we'll tell you who oscar gold could mean for netflix's surging stock. and how would you like to make money if apple shares go

up, down, or nowhere at all? >> surely you can't be serious. >> we are. and we'll teach you how to do just that using options. it's time to risk less and make more the action begins right now. anyway, let's get to it because it was another wild week for the markets. the dow dropping 3%, more than half the index is now in a correction and even the hottest dow stock over the last year is beginning to show a couple of signs of cracking. boeing falling more than 7% from its high on wednesday. the stock has been seemingly untouchable and an unstoppable money maker for the past year. carter worth, you said the air might be coming out of boeing longer term, break it down for us. >> if selling continues, it spills over into almost all stocks we've seen certain tech names that are impervious coming under pressure and boeing is no different.

let's start with the industrials. this is the xli, a liquid etf, you can trade all s&p 500 industrial stocks and we know it's been on a beautiful trend line but the issue here and now is that if you do revisit a line and start to bounce you shouldn't come back to it this quickly, you should go on and make a new high so the real risk is that we're setting up something of a minor head-and-shoulders top with a perspective break to new lows. but let's zero in on this big fella in terms of relative performance. it's really the most important thing. what we know is the major sector in the market has been growing straight up for the better part of 12, 15 months and it has made exactly no progress relative to the s&p. and adjusted for beta or risk it's a negative al pa proposition, has been. moving on. here we have boeing versus the

industrial eti massive out performer. now let's look at boeing going back to '02. one of the principles of trend work is that when you're in up trend you will check back, check back, check back to trend just as when you're in a down trend often, you will throw back, throw back, throw back to trend. we have now gone longer than any point in the history of the data for boeing without a checkback to trend i want to make the bet that this current 7% plus minus selloff is the beginning of something more. here is the current two-year chart. i think we're coming back to the average, that one implies as much as 7% to 8% down from here on a seller of boeing. >> unbelievable stock. carter, we'll see you in one second mike, how are you trading boeing >> boeing is an interesting case i like the company a great deal and fundamentally the story is strong except for one thing and

that's valuations. right now the company is probably trading at about a 20% premium to its historical averages and if you think about the fact that the market is looking shaky here, you want to worry about the stocks that are trading at heady valuations and boeing is one of those also fairly expensive are options on stocks like boeing so we are going to look to a spread specifically you can spend $19.75 for the 335 put when i was looking at it, sell the 290 against it, that will mitigate effects of decay we're looking in this particular instance at a fairly sharp pulback, maybe more than we would target at this time frame, more like 10% is what i'm thinking. >> so one of the things that's interesting, we talked about amazon early in the week, the prior market leaders that had these runs over the last few months, this was one of the first names to make a new high before the market has in the last segment you were talking

about the s&p down 6%. but at some point this volatility band in my opinion is something to be traded, especially as option prices have come in over the last couple weeks and i think where they're targeting and giving themselves a couple months to do it makes sense but let's be clear, you're choosing one of the toughest and strongest stocks in the market in university love but that's one reason why i think it could work if we go back and retest those february 9 lows. >> right going after a strong stock is dangerous because strong stocks are strong for a reason and yet when strong stocks come apart, they come apart more than almost anything look at mcdonald's recently. that's been one of the best-performing dow type stocks, too. >> what happened to that i was just bringing that up on fast money it's down 9%. >> i don't know what the news is but i'm not in the news business, i'm in the gap-and-drop business, it doesn't look good. >> it looks like a spilled bag of burgers out there, it was not a good day all right, guys. we'll talk more about mcdonald's at some point. anybody with a final word on boeing >> no. look, this is one of those

situations where you can have a good stock but a bad stock price and in bad stock price action and i think we have those two things to consider and right now actually even though options prices are slightly elevated you're getting the movement that justifies them. >> okay. moving on to a brighter spot in the markets today, that's the smaller-cap names, the rull 2000 rallying nearly 2% perhaps grouped as a safe haven in any kind of a trade war because they do most of their sales in america, stocks like noodles and company and amc, but do you think the group could run into trouble coming up what do you see. >> it's what we were talking about with boeing. on this week the s&p was down 2%, the small caps, the etf, the tracks, the russell 2000 was down a percent had a good reversal yesterday so showing good relative outperformance but here's the thing there is a lot of things going on to figure out how the tax cuts from december affect

domestic companies, how raising interest rates do, how strong commodity prices do. how a weak dollar does i don't know personally but the fact that it's being viewed defensively right now for all intents and purposes leads me to believe if we are going to retest the february 9 lows, which i believe they would do, this you want to take shots at something like that iwm in plarp particular i worked on the trend lines with my main man carter when you look at this thing, i violated the uptrend that's been in place from the early 2016 double bottom low here you could probably target a move back towards 140 over the next couple months so i'm looking at the april expiration when the stock was trading at 152 paying $2 for that, buying one of the april, 150 puts for 335, it costs you two bucks, it breaks even down at 148. that's down four bucks from

here but you can make up to eight down to 140. that may be aggressive but i wanted to sell that downside put to even up a scenario where i'm risking two to possibly making >> the market to some extent is wise because the market knows trade wars don't have anything to do with small domestic companies. we know the weighting in the russell is heavy in financials relative to the s&p and financials with the rating environment have held up well so i think the outperformance of wait is a wise thing on the part of investors your broader point is if all equities are getting under more pressure, this, too, will see it ultimately. >> $2 for a $10 wide put spread paying 4-1, we like that relationship a lot but when people are concerned and start buying that wing put, we call that skew in the options market and that's the reason you want to buy the at the money put and sell the out of the money one. i like the structure a lot we've demonstrated we can get that kind of movement. >> what would that skew

symbolize to you >> it's basically the cost of insurance and more specifically it's the cost of a sharp downward move so when people are buying way out-of-the-money puts, they're buying crash protection. >> now we're in a new volatility regime, we're seeing things move around a lot if you look to look at implied volatility, what you're seeing is the realized volatility, how much the underlying has been moving it's higher than the options price so to me when i'm thinking about doing long premium directional trades, that's an attractive setup that's why i like the idea of buying a 150/140, giving myself six or seven weeks to have this play out i like the risk/reward i'm literally risking 2% or something like that of the stock price. if i get it right this will be a great way to trade it. >> okay, thank you very much for more options action, head to our web site or sign up for our newsletter

in the meantime, here's what else is coming up on the program. >> announcer: how would you like to make money if apple shares go up, down, more to where at all >> that's incredible >> nope, it's one of the simplest options trades around we'll teach you how to do it. plus, calling all "options action" fans reach into your pocket, grab your phone and tweet us your question @optionsaction. if it's nice, we'll answer it on air when "options action" returns. >> logical well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em.

thousands of opinions. one estimate. the earnings tool from td ameritrade. 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.

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education to take your trading to the next level. only with td ameritrade. welcome back to "options action." happy friday netflix hitting the red carpet at the 90th annual oscars this weekend. by the way, the stock hitting an all-time high today. let's go to julia in los angeles. julia? >> reporter: hey, brian, the red carpet is covered with white plastic to protect it from the rain overhead right now. there's an oscar over there in a trash bag. but by sunday the red carpet will be prepped and it will be a big day for netflix and it has eight nominations compared to just three last year and four of netflix's nominations are for "mud bound." best supporting actress, song, adapted screenplay and cinematography that's broad acclaim for a movie that netflix bought at sundance, showing it figured out how to break into the elite ranks

the academy getting over their plan to release movies in theaters the same day they're released on netflix. they're also dominated for documentaries "icarus" and "strong island." netflix's rival amazon drew only one nomination this year for the best original screenplay for "big sick. this after last year, amazon had seven nominations and three wins, two for manchester by the sea and one for foreign language film that amazon distributed in the u.s. now the new oscar's attention to netflix helped film make yours reassure they could help them win hollywood acclaim as well as global reach netflix said in its last earnings that it will spend as much as $8 billion on content with the goal of half of that content being original that investment in content seems to be paying off with faster-than-expected subscriber growth and a stock that's up

115% over the past 12 months, crossing the $300 mark to hit a new all-time high. and it's worth noting that netflix is the only faang stock up this week. >> good luck with the weather, never have to say that in l.a. but good luck with the weather this weekend as julia noted, fete flix has been red hot, soaring more than 50% this year and that's the best start to a year for netflix since 2012 the stock is now worth more than general electric can you believe that, guys wow. so mike is at the plaza with the call to action on netflix. >> okay, so we're looking at using a call spread and specifically we're looking at buying a call spread typically speaking, this is a trade that you want to do when you think that a stock could move fairly sharply. netflix has certainly demonstrated that it can do that the other thing i'm looking at here is what you just referenced which is that the stock is trading near an all time high and as it does this, we're

seeing a name that, sure, it's worth more than general electric perhaps and several other companies. it's a hefty valuation so why don't we take a quick look at the chart. we can obviously see it's had a very sharp move here to the upside this right here came as it seems to so often, when people get a favorable surprise out of earnings and that's one of the reasons why i am not inclined to fade the stock as i am doing on so many others right now. the trade i was looking at, the april 290/340 call spread. when i was looking at that, you could buy the 290 calls for $18.85, sell the 340s against it this is the kind of trade you'll be interested in doing if you're looking to continue to press a bullish bet. when the market is looking wobbly here in a stock that has a high valuation and finally it's demonstrated it can move very sharply. >> already, dan. do you like mike's trade

>> if you're bullish, you do the stock closed at an all time high the stock is up 27% since the intraday low on february 9 mike just talked about this thing that it has the same market cap as ge it's a $130 billion market cap you know what disney's is? $155 billion people thought maybe disney was going to buy netflix so if you're playing more if the long side, there's something else going on. maybe it's gone from them being a target of -- >> if it keeps going way, maybe netflix will buy disney. >> it makes sense to define your risk. >> we know it's steep. the question is this you know what the pre-condition for great weakness is? preceding weakness mcdonald's has been rolling over for weeks and then it gets in real trouble in 1987 the stock market was down 18%, 19% before it plunged. to make a new high day after day in this kind of tape, that's not

just random, they're real performers, real individuals who are saying you know what i'm going to hold this you could say they're being naive but that relative strength is so impressive i'm inclined to say let it run. >> this is after we had a washout so weak hands did get flushed not that long ago. >> on a different note, a little bit related to netflix, is there any concern of any of you -- just jump in -- that the market is too concentrated in a few couple stocks, amazon, netflix >> well, the top five stocks right now are the same value, as the bottom 250 in the s&p. but that's not that rare a condition. if you look back at certain areas on big banks, big energy stocks we know the names, but they're all performing. >> the largest companies by definition just because they are the largest companies are going to have -- >> i mean -- >> i don't mean large. i had a hedge fund guy tell me last year tongue in cheek but he meant it that if you think the

market is going down, short netflix and amazon and walk away they've taken the market up -- >> but you don't do it out of nowhere, it's like picking a point in the air and saying this is the time. we were talking about the iwm, the entire market cap, all 2000 stocks, is only the same as the top six, seven stocks in the s&p. ultimately equities are determined by the largest names. >> let me ask you more directly. if amazon rolled over, could the whole market -- >> sure. >> could the nasdaq go up if amazon didn't. >> the nasdaq went up when apple was going side ways in 2015 or something. but the higher we go, the parabolic move december into january couldn't be sustained and the thing about the qqq, the top five holdings make up 5%, apple, amazon, alphabet, facebook, microsoft. all of those stocks will probably act pretty similar in a downdraft. up next, amid the recent market turmoil, apple has been soaring. the tech giant up more then 10%

in the past month. that's great news for dan. we'll tell you why. got a question about the crazy stock moves? send us a tweet t tto to @optionsaction. if it's a good one we may read it later in the show you're watching "options action" live at the nasdaq market site don't go anywhere. we'll be right back. wall street guy. m not realla what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade and i recently had hi, ia heart attack. it changed my life. but i'm a survivor. after my heart attack, my doctor prescribed brilinta. it's for people who have been hospitalized for a heart attack. brilinta is taken with a low-dose aspirin.

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only with td ameritrade. welcome back time now to look back on one of our winning trades last month dan here thought apple had found a floor and it worked out pretty well here's how he made money >> announcer: on options action, it's how we trade like tech genius geniuses, risk less so you can make more. and that's exactly what dan did with his bullish bet on apple. dan thought apple was about to make a comeback, but just buying the stock? 100 shares would put him back more than $16,000. >> good lord, that's a lot of money. >> announcer: you got that right. so to make a different kind of bullish bet, dan instead sold the march 150 strike put for $1.60 credit now, that $1.60 is the most dan can make on the trade, but in order to keep all that money,

dan needs apple shares to stay above that 150 strike by expiration but it gets better that's because even if apple shares trade below that 150 strike, dan can still make money. in fact, he would see profits so long as apple stays above that 150 strike minus the credit from the trade or above $148.40 by march expiration. >> everybody getting this so far? >> announcer: maybe this will clear it up. dan can do something not even the greatest apple genius can do -- make money if apple shares go up, down, or nowhere at all let's not get too excited, because there is a tradeoff and below that $148.40, dan could run into big trouble that's because by selling that put, dan could be forced to buy apple at $150 even if the stock goes all the way to zero but nobody puts apple in the corner and since the time of the

trade, the stock is rallied nearly 10% making dan's trade a winner and now options spans all over the world have been waiting in long to find out one thing -- what will dan do now >> george thoroughgood, blind melon? dan, you made us money. >> the stock had gone down from 180 to 160 so i was looking at the march expiration at 160 saying i think you could take in 1% by selling the 150 put over the next five or six weeks, it looked like a good high probability bet. that put is now offered at a dime, i think you take that in but what do you do with the stock here think about that as a yield enhancement strategy to your long stock position or when you're looking to dip your toe in the water or take in premium on the stock you want to own, that makes sense

i like doing that strategy after the stock sold off after the fundamental news was out about the earnings. >> obviously it probably bounced a little harder than you anticipated given how the market performed there. this is really a good high probability type of bet that you can make and as we pointed out at the time, apple because it has so much cash on its balance sheet, these are the kinds of names where put rights can make sense, especially in the conditions we had -- volatility moved sharply higher, premiums were elevated, you basically that have balance sheet at the bottom supporting you. >> all right, guys, thank you. up next, your tweets and the final calls. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better?

>>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. 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.

two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade. time for one tweet do you recommend selling covered calls on stocks with narrow ranges like disney to hedge on your position? >> absolutely. but not necessarily as a hedge, as a way to bring in a yield and

we have the best environment for that that we've mean a while. >> carter? >> sell boeing. >> put spreads on boeing. >> i like march put spreads. couple calls on boeing andiwm put spreads i'm brian sullivan, appreciate that don't go anywhere, "mad money" with jim cramer begins right with jim cramer begins right now. if you are one of the millions of americans who suffer from muscle cramps in your legs or feet, relief is finally in sight. hi, i'm dr. drew pinsky. and today i'm here to share some news that got me excited when i first heard about it. it's called theraworx relief. this life-changing product is clinically proven to quickly relieve the discomfort of muscle cramps and also prevent muscle cramps before they start. now the word breakthrough gets tossed around easily these days, but theraworx relief is the real deal.