hey, there we're live at the nasdaq market site 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. you know 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. but first we start with breaking news on intel and broadcom let's get to courtney reagan in the newsroom hi, courtney >> 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. you can see 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 as courtney mentioned. 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 what's interesting about intel, we've seen them be very inquisitive over the past few years. 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. so this could have something to do with shoring up market share at intel broadcom is at 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 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 thi 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. >> well, as far as technology's concerned, we've seen the most m & a activity 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 p.c. centric/serve centric as much as some of the other guys, but they are definitely in wireless, internet type 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, maybe a 30,000 contract print on the call side. in any normal stock that might be a blockbuster thing here it might be a 20% uptick. you're talking about m & a activity in the space. broadcom pre, whatever the price would be, if there is a deal is

a 1$100 billion, four-plus dollr 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 >> you said broadcom will be fine what 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, that sort of thing 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 valuation and because of how they're aligning themselves 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 take a look at the fang stocks in particular. amazon and netflix crushing the competition with facebook and google higher on the year but way behind their tech rivals one of the masters is hitting the sell button. 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, it's not just relative to fang-type stocks it's more relative to the market in 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 setup 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 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'm a seller of facebook here. if you are long and got great gains, take your money off the table. >> all right what's the trade, mike

>> simply i'm looking out to april. i'm looking at selling the april 185, 195 call spread when i was looking at this earlier today, you could sell the 185 for $5.70 buy the 190 calls for 5.90 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 q1 earnings.

they come after april expiration as far as catalysts are concerned it makes sense mike targeting the 185 to 195 range, it fills the gaps that's where the next level of resistance is. if you agree with the technical setup, which i do, the heightened voe la tilt, you have got that going for you i see what carter sees, but 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. >> you know, i think one of the reasons why you might also see that is there is a new narrative that's been introduced with names like facebook with respect to think 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 want to go back to the newsroom we have a statement in fro intel on reports of that possible deal with broadcom. 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 rumors or speculation related to m & a. that being said, we have mad 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 they've 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 after hours sessions too

>> for a company that doesn't comment, that was quite a comment. highlighting the m & 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 to@"options action." for everything "options action" check out the website. while you are there, check out our newsletter hurry up you've got one last hour to read this weekday. here's what's coming up in the show. >> yes, sir. after the ouster of steve 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.

and tweeted us your question @"options action. if it's nice, we will answer it on air when "options action" returns. >> logical 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 need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done.

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? action." i'm contessa brewer. the headline coming occupy of the wynn resorts las vegas this company is not for sale i sat down with the new ceo matt 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 matt

maddox, wynn resorts has 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 liability for the company. that settled before, of course there are still pending shareholder lawsuits against wynn resorts melissa? >> thanks 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 actually 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 bit of what it lost. essentially if you get in and you start buying a stock right here and we get more bad news, we kind of get a sense of where that bad news is going to lead you. so the trade-up i'm looking at here is the 170, 190, 210 call reversals. buy the 190 calls, 790 and take in elevations options premium, telling the 170 puts for 255. 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

if you missed the 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 are going to be, independent of 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 this was a company that really regained massive losses over the last five years up until this news to me, i love the idea of positioning for higher highs it really depends where you want to set that short put strike you chose 170. i might choose 160 and maybe go further out in the money maybe putting less premium at

risk and your break even is a little further away the bands have been widened a little bit i like this idea, especially after having a bounce. >> one of the things about that, obviously anybody can take a look at these and set the strike with an entry point can make a lot of sense i like this trade idea, especially when you add a 20% bonus. >> 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 types of trades, and you have risk reversal.com so you must talk about this all the time those wing options decay faster as a percentage of their value that the one at the money does even though you are laying out the premium the decay is very low. >> what would make it go down. >> let's talk about what's going on in massachusetts. for the state to sit there and say, okay, we're going to try to

take it out on all of the shareholders of this company, all the other stakeholders, when the guy whose name is on the building is actually gone -- like i said before, choose on core it seems like an appropriate enough m & a their hotels are the best on the strip. they do a great job. i actually like the way they manage this company. i don't think that steve being out of the picture is going to -- he was going to have to leave eventually anyway. >> apg also the price action is not much different than lbs or mgm. so that even though the things going on with this specific company, it's not being traded differently by the street. carnival and royal caribbean with are being rolled over >> the lawsuit being done is a big deal, too. everybody remembers the controversy when that originally happened and the guy was thrown off the board but i think it's nice to have that out of the way as well. >> netflix is up 10% this week alone. that's great news for one of our traders. we will break down the winning trade after the break. much more "options action" next. 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. moderate to severe rheumatoid arthritis was intense. my mom's pain from i wondered if she could do the stuff she does for us which is kinda, a lot. and if that pain could mean something worse. 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.

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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 to "options action." it's time to take a look back at some of our open trades. now, just last week, mike was bingeing on netflix with a

bullish bet on the streaming giant. >> this right here came as it seems to so often when get a favorable surprise out of earnings that's one of the reasons why i'm not inclined to fade the stock. when i was looking at this earlier today, you could buy the calls. sell the 240s against it for $4. that's a net less than $15 on a spread that is $50 wide. >> netflix soared 10% in the last week, the stock making a comeback and slugging off a downgrade from earlier in the week so, mike, what's next? >> this is amazing, this stock blink and you might miss it. it's incredible. in the middle of the week when the stock got up around $322, tweeted out that you could roll those 290 calls to 320s. and free free, better than that because you had taken profits off the table. here we are at 331

if you are in the stock take profits on the call spread i don't know this is going to end here i might be inclined to take some of the proceeds and -- >> what do you think >> the interesting thing is if you look at past instances where and stock gaps on its news and there is followthrough, you reach a point where it is then not going higher on a relative bases. i think take your profits is the right play. >> the stock was up 55% last year up 22% this year i have never seen anything like this people are confident. >> we were making a multibet week this was going to go up 50 bucks. it's up almost the whole thing. >> up next, final call from the options pit. 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? welcome back to "options action." breaking news moments ago that intel may be putting out its own bid for broadcom while the ceo of broadcom will be on "mad

money" next thursday you will want to catch that. time for the final call. carter >> i am a seller of facebook >> mike khouw? >> wynn. >> dan nathan? >> i don't have a trade. good-bye and good luck. >> looks like our time is expired. check out our "options action" website. stay tuned "mad money" is up next >> this is a paid program brought to you by the international fellowship of christians and jews, presenting the plight facing god's chosen people today so that you can be a blessing to them through your prayers and christian love. >> and it was right here in those ravines jews would be brought. they were walked for kilometers. ♪ comfort my people... >> each of them went through unbearable darkness. ♪ comfort my people...