hey there, the guys are getting ready for the big show while they are doing that, here's a look at what is coming up on "options action. >> a million dollars isn't cool. dupe what's cool >> making money. if facebook shares go up, down, or nowhere at all. we'll show you how to do it. plus. >> see how mild and good tasting a cigarette can be >> yeah, but maybe not for your portfolio. because cigarettes and other so-called safety stocks are flashing a warning sign. we'll tell you how to profit

and -- >> double down. >> that's what investors are doing in shares of wynn resorts. after you hear when the new ceo told cnbc, you might be doubling down, too. it's time to risk less and make more the action begins right now. we are going to get to all of that. first breaking news on intel and broadcom let's get to courtney reagan >> this just crossing right now from dow jones dow jones reporting, according to sources, that intel is considering acquisitional alternatives, including possibly looking at broadcom. you know right now of course that broadcom is working to try to take over qualcomm. and that deal of course is getting excessively complicated. shares of intel aren't moving that much after hours. broadcom shares are moving higher after hours at this point, qualcomm shares down slightly on this report

from dow jones citing sources that intel is looking into possible acquisitions, including taking a look at what's going on with broadcom. back over to you. >> courtney thank you. courtney reagan. let's trade this this could possibly derail completely the broadcom for qualcomm deal. you had pitched broadcom as a fast pitch recently. >> i think broadcom is probably okay no matter what happens here if they get bought out but i think they obviously want qualcomm intel has been inquestions tichlt they spent over $30 billion in acquisitions to kind of reposition themselves for the next ten years one thing that's important to note here, this is a company that really did miss mobile. for years people thought intel might buy qualcomm it never happened. broadcom came in here. it could have something to do with shoring up market share at intel, broadcom is a 5, 6% customer there has been concern intel is going to start losing share in

some of the areas they sell into apple. this makes a murky situation ma much murkier. >> i would say there is a strategic alliance that makes a lot of sense there a lot of times when you see companies that missed the boat in their space they make acquisitions, sometime at questionable valuations. we don't know what that valuation would be but in this particular instance it could be accretive. they could pay a premium and it could be a win for both sides. >> the stock lagged if the you look at its performance relative to to amd and semis it has been a hearing. something has to happen. they have to acquire someone or get acquired >> the headline is intriguing because it's not just broadcom, it said alternatives like there could be other candidates as well >> we have seen the most m and a active in five years in

semiconductors that's not including what this qualcomm deal would look like if broadcom was to prevail. i would throw texas instruments into the mix they obviously don't sell into the kind of pc centric server centric as much as some of the other guys but they are definitely in wireless, internet of things. and industrial and that's a big one for texas instruments. >> has there been unusual activity in any of these names prior to suggest that something was happening. intel is and always has been one of the more active names has it been standing out this week no, i don't think so these are among the more actively traded names. sometimes you could have unusual activity a 30,000 contract opinion on the call side. in any normal stock that might be a blockbuster thing here it might be a 20% uptick. you are talking about m and a activity in the space. broadcom pre, whatever the price would be, if there is a deal is

a $100 billion-4 plus dollar company. you need to see something big for it to stand out. it's not like when intel took over all terra >> and also before the qualcomm deal got going there was tells in the qualcomm pattern. but there has been no tells that the intel blanket might be coming >> blood come will be fine, you said how about qualcomm. >> they finally get their nxp deal done, which they wanted to do >> yeah. >> i don't know. i think there is probably a couple big mega mergers to be done depending how it shake out. i think mike's point is good about broadcom it's trading in low teens on a p/e basis. so has intel some of the deals they have been making over the last few years they are much more expensive mobile app that sort of thing. they are hoping at some point in they are well positioned in auto on the mouse movement and self driving and that sort of thing,

they are hoping that because of their exposure to some of the emerging technologies -- to me, i think some of these stocks are best bets because of technology, because of innovation and because of how they are aligning them testifies of selves for the next ten years of computing. >> the nasdaq hitting a fresh all-time high on the back of a tech surge the sector surging up 10%. the best performing sector this year look at the fang stocks. amazon and netflix crushing the competition. facebook google higher on the year way behind, though carter is going to head to the plasma a. >> we are going to look at facebook one of the thing we know is that this group is treated as its own sector, its on asset it has an acronym that has become popular, f-a-n-g. but facebook is not attracting capital. after a run up that's a sign of

trouble. what we have here is the recently created fang index is not just those named in it but thing like twitter among others. what we have of course is a great correlation that then has started to not be the case in fact, so he see that facebook has really not participated with its like kind, so to speak look at this over a longer period of time i mean, this is not nothing. and so often after a great run-up, a fade or small foreshadows more trouble let's keep going another way to look at it is not just relative to fang type stocks it's are relative to the market n. fact what we know is while facebook has generally been ascending for the better part of three or four months, its relative performance to the s&p, i mean not being able to beat the s&p with bad staples in it and utilities, i mean, unable to perform in line with the s&p, which is hardly a comp, well, who about compared to a comp this is compared to tech

so, yes, the stock is up but the relative performance to the other choices one could have made is down that's not great not a good set up. and then just one more maybe you considered consumer discretionary because it's so tied to consumer behavior. but the same general pattern, yes, which is to say, up, down all right. let's look at the chart itself and i'm done here's is the one, two year chart. 16 to 18 here is the trend line that draws itself it has been this well defined channel. and we have really broken down, often after breaking below a channel, and then throwing back to the top of the channel as it's done. it typically hits its head and then does. that i am a seller of facebook here, if you are long and got great gains take your money off the table. the trade mike >> simply i'm looking out to april. i'm looking at selling the april 18 a, 195 call spread.

when i was looking at this ier today you could sell the 185 for $5.70. buy the 190 calls for 190. so this is a situation where you can collect a decent percentage of the distance between the strike the situation here with facebook is from a fundamental standpoint, it is a great growth story. can't argue about that we are talking about mid double digit revenue growth basically since this company went public but we do see elevated options premium, and i do see weak innocence the charts this is a way you can basically bet against the stock. even if it levels off you will collect this premium over the course of a month. >> are you with him? >> i had say the most likely catalyst for the stock is going to be q 1 earnings they come after april expiration sarz catalysts are concerned it makes sense. mike targeting the 185 to 195 range, it gills the gaps that's where the next level of

resistance is. if you agree with the technical set up, which i do the heightened volatility, you have got that going for you. i see what carter sees but i also see a stock that sends a lot of time consolidating and find a reason to go up 15% over the last few years this is one way to play that if the stock continues to consolidate you are going to make some money. >> doesn't consolidation usually happen in a channel? >> what dan is referring to, it has limiting periods where it sort of stalls and rolls over but stalls where it ends up being the setup for the next advance. he is cautioning, could this be the pause that refreshes or the case i'm making, is it foreshadowing something not desirable. >> i think one of the reasons why you might also see that is there is a new narrative introduced with names like facebook with respect to things that are going on. they are trying to change their business model with respect to the kinds of things that get

disseminated over the network. i think people will have a wait and see to see how that plays out. >> we have a statement in from intel on reports of that possible deal with broadcom. kart courtney reagan has the latest. >> we did get a statement from intel. again, this is in response to the dow jones report citing sources that intel is considering a variety of possible strategies, including making a bid for broadcom. so intel's response to cnbc is quote, we do not comment on rumorors or speculation related to m and a that being said we have made important acquisitions over the past 30 months and our focus is on integrating those acquisitions and making them successful for our customers and shareholders so pointing out recent acquisitions that we have made back over to you. >> thank you courtney. we saw the pop in shares of broadcom, avgo and qualcomm shares are lower by more than a percent in the afterhours sessions too. >> for a company that doesn't

comment, that was quite a comment. highlighting the m and a they have been engaged in >> seems like you would say no comment. we don't comment on speculation. >> if you were going to try to read anything into it. it seems like our plate is full is one way i might read that it would discount it a little bit maybe. >> got a question out there? send us a tweet at "options action." for everything "options action" check out the website. while you are there, check out our newsletter hurry up you have one less hour to read it this weekend. in the meantime, here's what else is coming up in the show. >> yes, sir. i love this town >> after the ousting of steven wynn, investors are loving shares of wynn resorts and after you hear what the new ceo told cnbc, you might, too. plus, calling all "options action" fans reach into your pocket grab your phone. ptnstweet us your question at

"oio action. if it's nice, we will answer it on air when "options action" returns. >> la jollacal -- logical. 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

but i'm not standing still... and with godaddy, i've made my ideas real. ♪ ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪ so lionel, what does 24/5 mean to you?rade well, it means i can trade after the market closes. it's true. so all...

evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? welcome back to "options action." i'm contesza brewer. the headline coming occupy of the wynn resorts las vegas this company is not for sale i sat down with mat maddox for his first tv interview and asked him if he is fielding phone calls about buying the company either in whole or in part. >> as the ceo i have a fiduciary duty to entertain anything but what i can tell you, we are not for sale and there have been talks about breaking the company up.

that also makes no sense to pursue those alternatives is a mistake. i'm getting everybody focused again on what it is that we do we build places that are fun and that produce the best returns in the business >> when you have massachusetts politicians saying we don't know if this project can continue with the wynn name up on the building, would you consider a name change? >> the emotions are very raw right now on this subject, which i completely understand. but to make a branding decision that would impact 25,000 employees and 20-plus-million guests a year at this time i think would be a mistake. >> under the leadership of mat mat objection, wynn resorts now settled one big lawsuit with a big shareholder. that had been ongoing litigation for six years, was threatening to be a $5.3 billion liable for the company. that settled before of course

there are still pending shareholder lawsuits against wynn resorts melissa? >> thank you contessa brewer for us in las vegas. if you look at shares of wynn, the stock has actually regained most of its losses from late january when they allegations against steve wynn first surfaced w. a -- with a new ceo at the helm, mike khouw has something you want to hear. >> options really spiked when they gapped lower on that news they are still well above average. second thing we are trying to do is capture some of the up side finally we want to avoid some of the risk of further downside after we saw this news come out -- we will look at how the stock behaved. we can see what is going on here as you alluded to, obviously this is when the news took place. stock fell back sharply.

now we have recovered a decent ed bit of what it lost. if you come into the stock right here and get more bad news we have a sense of where that is going to lead to right around the 170 level the trade i'm looking at doing here is the 170, 190, 210 call spread risk reversal buy the 190 calls, 790 and take in elevations options premium, telling the 170 puts for 255. and as you look at this chart that essentially represents where the downside risk is in my view on more bad news although i don't think expect we are going to get any if you missed the opportunity to buy the stock when it was down here that's the risk you are taking by doing this trade fit does drop, that's where you are going to independent up owning it. >> what do you think >> this in terms of a dynamic pattern, you can't find a more -- i mean it was sitting

there at 165 in early january. news relate, pops 25% to 205 acquisition. drops that much back to 165. and now back again to 200. as a technical set of goals i think it's great >> what do you think about getting long. >> let's talk about the structure. i love this trade structure. after this bad news is out and the stock has recovered, you can maybe say whatever doesn't kill you makes you stronger it had massive gains up until this news. i love the idea of positioning for higher highs you chose 170 for the put strike i might shoes 160 and go further out of the unin. putting less premium at risk then your break even is a lib further away because the roll tilt bands have been widened i like this trade idea, especially when you add a 20% boins. >> one of the things about that. obviously, everybody can look

and set the strikes where they think an entry point would make sense. obviously if you push out in the calendar you collect more premium and widen out the strikes. we are looking at a short time horizon here one of the surprises is even though you are spending premium, generally speaking in these generally speaking in these types of

well, it's earnings season generally speaking in these types of 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 ameritde.

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i'm not really a, i thought wall street guy.ns. 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

so lionel, what does 24/5 mean to you?rade well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you?

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 save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. what can i say we ran the gauntlet. this is a market where the main thin