we're live at the nasdaq market site the guys getting ready for the big show and while they're doing that here is what is coming up on "options action. >> million dollars isn't cool, you know what is cool? >> making money as facebook shares go up, down or no where 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 tellyou how to profit. and -- >> double down >> that's what investors are

doing in shares of wynn resorts and after you hear what 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're going to get taall that but, first, we start with breaking news on intel and broadcom let's get to courtney in the newsroom >> 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. broadcom is working to take over qualcomm and that deal, of course, is getting difficult you can see shares of intel aren't moving. broadcom shares are moving higher after hours at this point. qualcomm shares down just slightly on this report from dow jones citing sources that intel is looking into possible

acusitions including taking a look at what's going on with broadcom back over to you >> thank you >> this could possibly derail completely the qualcomm deals. you had actually pitched broadcom, right? >> i think broadcom is okay no matter what happens. they want qualcomm here. what is interesting about intel. we have seen this company be inquisitive. they probably spent over $30 billion in acquisitions to reposition them selves for the next ten years one thing that is important to note, this is a company that missed mobile. it never happened. broad com came in here this could have something to do with shoring up some market share. broadcom 5%, 6% customer concern that intel will start losing some share and areas that they sell to apple this makes a murky situation

that much murkier. >> one thing i would say, certainly a strategic alliance that makes an alliance there companies that have missed the boat in their space. they go out and make acusitions. we don't know what that valuation would be but in this particular instance, it intel actually trades at a premium by about two turns. so, when you think about it, they could pay a premium and it could be a good win for both sides. >> i mean, look, the stock is lag. if you look at the performance, amd, it's been a real lagger so something has to happen they have to acquire someone or they have to get acquired but a problem stock if you've been investing. >> the headline is intriguing because it's not broadcom, it is alternatives other candidates, as well. >> as far as technology is concerned we have seen the most mna action i think it's close to $300 billion, that's not including what this qualcomm deal would look like if broadcom

were to prevail. this thing got really complicated. another name in the mix is texas instruments. they, obviously, don't sell into the kind of pc centric server as much as some of the other guys, but definitely in wireless, internet things. that sort of thing industrial that's a big one for texas >> any unusual activity in any of these names prior to somebodyb suggesting that something was happening? >> intel is and always has been one of the more active names has it really been standing out this week? i don't think so these are among the more actively traded names. sometimes you can have unusual activity al30,000 contract print on the call side and any normal stock that would be a blockbuster thing. here a 20% uptick. you're thauk talking about $300 billion worth. broadcom whatever the price would be, if there is a deal, $100 billion plus dollar company. you need to see something big

and it's not like intel took over altera. we did see unusual activity. >> also before the qualcomm movers got moving, but individual this kind of intel blanket. >> you said broadcom would be fine no matter what, what about qualcomm >> qualcomm gets their deal done, which they wanted to do. you know, so, you know, i don't know i think there's probably a couple big mega mergers to be done depending on how this thing shakes out it's such a cheap stock. trading in low teens, just on a pe basis so has intel some of the deals that they have been making over the last few years they're much more expensive. they're hoping at some point if they're well positioned anda tonmous driving that they'll see the appreciation that nividia has because their exposure to some of the meurging

technologies to me, i think these stocks are some of the best bets because evaluation and how they're aligning themselves for the next ten years of computing. >> let's stick with technology the nasdaq hitting a fresh all-time high on the back of a big tech surge check out the surge in the past month. up more than 10% in the best performing sector this year. look at the bank stocks, in particular facebook and google still higher in the year and way behind two big tech rivals and one is causing the chart master here to hit the sell button. >> we'll look at facebook. sure one of the things we know is that this group is almost treated as its own sector and asset. it even has the acronym that has become so popular. but facebook is not attracting capital. it's not under accumulation and often after a great runoff that's a sign of trouble what i have here is the created fang index not just the names in it, but

things like twitter among others and what we have, of course, is a great correlation that then it started to not pea the case. in fact, so, you see that facebook has really not participated with its like kind. so to speak. look at this over a longer period of time this is not nothing. often after a great runp a fade or stall foreshadows more trouble. let's keep going another way to look at it is not just relative to stocks, it's relative to the market while facebook has been ascending for the better part of three, four months, relative performance to the s&p not being able to beat the s&p with staples and utilities. unable to form in line with the s&p. well, what 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 consider consumer discretionary because it's so tied to consumer behavior. the same general pattern which is to say up, down all right. let's look at the chart itself i'm done here is the one, two-year chart. 16 to 18 here's the trend line that draws itself it's been in this well-defined channel and we've really broken down often after breaking below a channel and then throwing back to the top of the channel as it's done. typically its it does that i'm a seller of facebook take the money off >> what's the trade, mike? >> very simply, i'm just taking a look out to april. i'm looking to selling the april 185, 195 call spread when i was looking at this

earlier. sell the calls by the -- actually, i believe this was the 190 calls. it said 195. this is a situation where you can collect a decent percentage of the distance between the strikes and the situation here with facebook is from a fundamental standpoint, it's great growth strike. we can't argue about that. mid-double digit revenue growth basically since this company went public. but we do see elevated options premium and i do see that weakness in the charts this is a way you can bet against the stock, even if it levels off here. you'll collect this premium over the course of a month. >> are you with him? >> the most likely catalyst for the stock is the q1 earnings so, as far, it makes sense that 85 to 95 range is really the gap it will fill back to the highs. that is really where the next level of resistance is if you agree with the technical

setup, which just came up with heightened volatility. you have that going for you. listen, it's funny i see what carter sees, but i also see a stock that spends a lot of time consolidating and then find a reason to go up 15% over the last few years or what. this is one way to play that because if a stock continues to consolidate, you'll make some money. >> doesn't consolidation happen in a channel >> these wilting periods where it not quite stalls and rolls over, but stalls because it end up being the set up for the next advance. could this be the pause that refreshes or the case i'm making, is it foreshadowing something? >> i think one of the reasons why you might also see that is that there is a new narrative that has been introduced with names like facebook and things going on they're trying to change their business model i think that people are going to have a little bit of a wait and see to see how that plays out.

>> we want to go back to the newsroom and statement in from intel and reports of that possible deal with broad com courtney reagan has the latest >> we did get a statement from intel, again in response to the dow jones report citing sources that intel is considering a variety of possible strategies, including making a bid for broad com intel's response to cnbc is, quote, we do not comment on rumors or speculation related to m&a. that being said, we have made important aqcquisitionsacquisit. making them successful for our customers and shareholders pointing out recent acquisitions that they have made. >> thank you, courtney we saw that share pop. if you have seen qualcomm shares trade lower. >> for a company that doesn't comment on m&a that was quite a comment >> most people would just say we

don't comment on rumors. so, are you reading into it? oh, come on, tell us >> it just seemed like you would say, no comment. no comment >> i mean t did seem -- if you were going to try to can read anything into it one way i might read that so that, you know, it would discount it a little bit maybe. i have a question out there. for everything option actions check out the website. check out our news letter and hurry up, one less hour to read it this weekend. in the meantime, here iswhat else is coming up in the show. >> yes, sir. i love this town >> after the ouster of steve wynn investers are loving shares of wynn resorts. plus, calling all options action pass. reach into your pocket, not your phone and tweet us your question @ optionsaction.

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 crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

you know what's not awesome? gig-speed internet. crowne plaza. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone.

now you can get it, too. welcome to the party. 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. welcome back i'm contessa brewer. the big headline coming out of wynn i sat down with new ceo matt maddux for his first tv interview and asked if he is fielding phone calls about buying the company in whole or in parts >> as a ceo i have a fiduciary

duty to entertain anything what i can tell you, we're not for sale talks of breaking the company up, that also makes no sense to pursue strategic alternatives at a time when the narrative is not aboutthe business is a mistake. so, what i'm doing is 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 >> whenyou have massachusetts politicians saying we don't know 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 the 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 matt maddux wynn resort settled one

lawsuit that was ongoing litigation for six years and threatening to be a $3.5 million liability for the company and introducing open evidence in court, that settled. of course, still pending shareholder lawsuits against wynn resorts melissa? >> thank you, contessa brewer. if you take a look at shares of wynn, the stock regained most of its losses against steve wynn first surfaced with the new ceo at the helm if you're looking to roll the dice, mike has a way taskew the odds in your favor. take it away. >> we'll look at a call spread risk this is a trade that we're going to want to look at when options elevated are premiumed it spiked when they gapped lower on that news they are still well above average. the second thing we're trying to do here is we're trying to capture some of the upside, but, finally, we also want to avoid some of the risk of further

downside after we saw this news come out and we'll take a look at how the stock behaved. we can see what's going on here. as you alluded to, this is when the news took place. stocks fell very sharply and now we recovered a decent bit of what it lost essentially, if you get in and you start buying the stock right here and you get more bad news, we have a sense of where that bad news will lead to. right around the 170 level the trade i'm taking a look at doing here is the 170, 190, 210 call spread risk reversal. you'll buy the 190 calls and then to take in a little bit of that elevated options premium. we're looking at selling the 210 calls and as you can take a look on this chart, that essentially represents where the downside risk is in my view on more bad news although i don't expect we're going to get any another way you can think about this, if you missed your opportunity to buy the stock when it was down here, that's the risk you're taking by doing

this trade if it does drop, that's where you're going to end up owning it >> what do you think >> in terms of a dynamic pattern, this is a stock that was sitting there at 165 and early january pops 205 and acquisition and then drops that much back down to 165 and now back again to almost 200 >> what do you think of the trade -- what do you think about actually getting long. >> i love this kind of trade structure, especially after this bad news is out and the stock is recovered. you can maybe say whatever doesn't kill you makes you stronger this is a company that has really regained massive losses over the last five years up until this news. i love the idea of positioning for higher highs it depends where you want to -- i might choose 160 and then maybe go further out of the money, okay. so, really kinding putting less premium at risk and then your break even is a little further away because, obviously, all the

band have been wind a little bit. >> so one of the things about that obviously, everybody can take a look at these and try to sort of set the strikes where they think an entry point would make a little seps. you push out further in the calendar, you can make more premium and widen out those strikes. we're looking at a short time horizon here even though you are spending some premium generally speaking in these types of trades and you have riskreversal.com. those wing options that you sold actually decay faster as a percentage of their value than the one with the money does. you're laying out premium, the day-to-day of this premium is very low >> what would make you cautious on this trade, mike? news flow in terms of the fundamentals >> let's talk about what's going on in massachusetts. for the state to say, okay, we'll take it out on all the shareholders and all the other

guy stakeholders the guy whose name is on the building is gone. choose encore. they are the best on the strip they do a great job. i like the way they manage this company and i don't think that steve being out of the picture, he was going to have to leave eventually anyway. >> the price action is not much different than lvs or mgm. even though the things going on with this specific company, it's not being treated any different by the street. where the other hospitality stocks like royal caribbean. >> the lawsuit is a big deal this is ongoing. everyone all remembers the controversy when the guy got thrown off the board, but i think that is nice to have it out of the way, as well. up next, netflix is up 10% just this week alone we'll break down the winning trade after the break. much more actions option, next

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 to to me he's, well, dad.son pro golfer. so when his joint pain from psoriatic arthritis got really bad, it scared me. and what could that pain mean? joint pain could mean joint damage. enbrel helps relieve joint pain, and helps stop further damage enbrel may lower your ability to fight infections. serious sometimes fatal events including infections, tuberculosis, lymphoma other cancers, nervous system and blood disorders and allergic reactions have occurred. tell your doctor if you've been someplace where fungal infections are common. or if you're prone to infections, have cuts or sores,

have had hepatitis b, have been treated for heart failure or if you have persistent fever, bruising, bleeding or paleness. don't start enbrel if you have an infection like the flu. since enbrel, dad's back to being dad. visit enbrel.com... and use the joint damage simulator to see how your joint damage could be progressing. ask about enbrel. enbrel. fda approved for over 14 years. 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? [ horn honking ] [ engine revving ] what's that, girl? [ engine revving ] flo needs help?! [ engine revving ] take me to her! ♪ coming, flo! why aren't we taking roads?! flo. [ horn honking ] -oh. you made it. do you have change for a dollar? -this was the emergency? [ engine revving ] yes, i was busy! -24-hour roadside assistance. from america's number-one motorcycle insurer. -you know, i think you're my best friend. you don't have to say i'm your best friend. that's okay. welcome back to "options action." >> 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 actually fade the stock. the april 2090 340 call spread you could buy the 290 calls for $1 $18.40 a net debit on a spread debt at $50 wide >> and netflix has soared 10% in the last week. the stock making a comeback today and shrugging off a downgrade from earlier in the week mike, what is next >> blink, you might miss it. it's really incredible in the middle of the week when the stock got up around 322 tweeted out that you could roll those calls and take in 19 bucks and then essentially on the 320/340 call spread for free because you had taken profits off the table. here we are, trading 331 take profits on that call spread but i don't know that is going

to end right here. i might take some of those proceeds >> obviously, the interesting is if you look at past instances where the stocks stop on its news and in this case weeks and weeks, we reach a point. very close it's then not going higher on a relative basis so, i think take your profits is the right thing. >> i mean, listen, the stock goes up 55%. that's eye popping i've never seen anything like this it seems pretty confident. >> you were making a multi-bet week that this was going to go up 50 bucks and it's up almost the whole thing. >> up next, final call from the option 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.

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. welcome back breaking news moments ago that intel may put out its own bid for broadcom time now for the final call.

carter >> seller of facebook. >> call for risk reversals when. >> i didn't have, so good luck looks like our time is expired. i'm melissa lee. check out optionsactions.com stay tuned "mad money" is up next 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.