ripped off next time on "american greed." hey from, we're live at the nasd nasdaq signature woa jacket. ájqhow. >> energy stocks coming into bloom. and one the traders says there

wa -- later. >> housekeeping? >> more than half the dow is in a correction buti] if you own one of the bean names, mike has ae1 way to clean up some of your losses for next to uar'g. it's time to risk less andw ma more ♪ let's get rigg1 to it because tech saw its worst week sincexd2011 at the center of the chaos was facebook sinking 14% but others calling investorse1 heart break. expo tech now on the brink oft( correction down 9.9% from its high let's goi to dan.x >> let'st look at the sma

this has massively outperformed this outper for mans that still exists this year even with the nasdaq down,e i think an opportunity for traders to be kind of be numbabimbu or the sh side we entered the year with optimism about m and a,e1çóexpe to merging technologies. now we have a situation where the white house put the ca bash on the deal. we had reversal. 8% today so to me, i think all this protection stuff about the tariffsok to hit this sector i just got to say. look ate1 this chart smh. it looks like it's going back to the up trend that's been in place i think that if the s&p and nasdaq go back to those prior fed 9 lows, this thing is going

back to the mid to low 90's. i think there's an easy way to plan this. smh today you can look out to may expiration and buy thee may 105-95 spread. buying one of the mayt(105 points, selling the 95 that's the $2.50 breaks even at102 half on the this is looking to target a move back to that uptrend a lot of technicians would tell you this would still be in place if it you had the sock at 95. i think it's kind of tough to pressfá shorts here even when y consider the big contet wents --

i grant it'see obviously veryr w.÷micron i like it in intel.ñ smh's largest lconstituent. you can represent about 2.5% of the index to make a bearish bet. we're going tot knowñriwithie next 50 or 60 days. >> may i ask a question? c-ae=u-- notice by the way i'm wearing a jacket. >>ej've never seen you where a jacket. >> this is a smart show. >> you brought your glasses. >> i did i brought -- should i put them on >> which i've also never e1çóe. >> my question to dan would be we're talking about a fix north of 24 or so. we haven't been able took susta those levels, so i guess my question would be are buying options in this environment, is that in and of itself;ia risk >>ç well, i mean some guy -- wn i started looking at this this afternoon, the smh was trading at 106

the close, by the time ioiok september the e-ma sent the ee-mail about the trade. mike just mentioned oneé@ of t biggestoku components is intel that is a low-vol name it it has been relatively suppressed because of some of if the market goes back to the lows this is going to be back unchanged on the year.ç to me, i think option prices seem pretty reasonable idea with this rcoá isxdyou g a pop, had a horrible close, you lookt+ put this thing out abou 106-ish. >> one of the things i quickly point out is the reason it's elevated is because the market is moving around what we aren't seeing is that optionslp are grossly overxzced >> as tech and the broader market getsok slammed energy has

emergedxdas a rare bright spot. mike has a name in the group that heruithinks could see a bigger breakup. >> i'm actually looking at t( hilibert this isfá a name wee1çómimgentc in december. it has had a pretty wild ride. this is down sharply from its late january highs that's one of the reasons why i think ite represents a pretty goodt opportunity first of all, this is a domestic play oil services business obviously is rip roaring right now i think the best way to take advantage of that is that we have higherñiimplied -- guy was just pointing out.w i'm j u i'me1 just looking out to may. when you get -- put the stock, if you are at that strike price, you're going to end up owning it at close to $45. that's a level we haven't seen for quite a while. we õ clearly see this is one

of those situations where we're fact that thevstock isg on the significantly lower than it was. in a way you're hoping you do get put to stock inko this particular case. >> i happen to agr" with that talking about that my concern was an evaluation concern. now, ifjfu you look. halliburton is goingn1 to ea more in an environment where oil looks to be going higher for a i like this play here. >> i was going to add one other point. let's just say fore the sake of argument it treads xdideways. you're going to be collecting between 4% and 5% of the current stock price in less than two months that's a pretty good rate of return, especially when=-!youe a look at the fact that many of

the names thate gabegan the yer are basically a little bit lower. >> it's interesting. there is a lot of fundamental inpuppe p (t&háp &hc% inputs x1%qe1w3o small profit in this trade that's what i think mike is going for. he's not banging the table ande saying buy halliburton here. option prices are very near the money, the sale is ae great way to try to take inéha few % ove t 1 this is afá great way to kind of dip your toe the water trying to get some long exposure without being too aggressive. >> i think -- that's basically trying to improve the probability of profit. this has a relatively high probability of profit, which is nice of course we're always happy to just collect premium overtime if we can that's what this trade is going to do.

all right. you can checklp out our website option the action. sign up for ourséxi newslett. what are you waiting for here's what'si coming up next: >> if you own one of the crumbling stocks, relax because we have a way to fix your broken trade for little toe1 no cost. plu plus call all "options action" questiquestio questiquestio questiquestion 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?

(indistthat was awful.tering) 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! mad skills. education to take your trading to the next level. only with td ameritrade. welcome oback % correction what are some of the biggest do downers? is this we havee1 the details. e1 accentuate the positive a eliminate the negative anyway, like you said we wanted to take a look at those stocks of the 30 dow members around half of them have not only hit a 50, but they've also fallen from

those levels by 10% or more. among thee1 names on that list,q aerospace giant boeing and cat tar pill úzer, especiay when it comes to what happens in a hypothetical trade warçç wi china. ng is around 13% blow. caterpillar lost a percentage. mcdonalds 12% below levels home depot which had been one of the bigger beneficiaries is now 16% below its recent highs biggest pullback of them all is retailer wal-mart, which is now over 20% below its recent high so these are some of the stocks that had positive trends just recently, but have now stumbled rather significantly ones to watch. >> all right well if you own one of those stocks, don't worry because we

have a simple strategy mike is over at the plaza with a call to action >> one of the most common questions we get on the options side is i own a stock, substantially higher than where it is now. is there an optionf strategy tt can help me out? well i can't go bac&dto time an fix past maistakes. tbe able to help. when we look at1z(sktocks recy strategies, you're going to see higher options premiums. these are strategies you want to employ provided your fundamental story hasn't changed and you still like the stock final thing, you could add, but what if you don't want to riskç additional capital we're going to take a look at home depot one of the interesting things here is that i think this is a very good stock. it may have simply gotten a little bit ahead of itselfl in

late january we can see it's fallen back sharply this. is trading about 18 times earnings and is growing the top line at anywhere from 6% and 8% o do is buy one =fq180 call spend $4.45 for that and then sell two each of the 190 calls for $1.60. so collecting a total of çó3.20 you can add this so thew3long position for every 100 sharesjf and basically if theú=-ru5eñ rises by a buck and a quarter, you're going to make up the q$ys very often when a stock falls as sharply as it has done, it will lit a little bit of resistance this is a way you're goingo to make more money r

remember the stock topped out add around $200 bucks. >> what do you think of this strategy >> i love the trade structure. here's a stock down 17%. mike is lookingxdto take -- t figuring out how to double of a 9-point game if you get that move over the negligent month or two i like the idea and you'rex taking advantage of volatility whtris helping finance this. so, to me, i like this trade idea especially in a blue clip may feel has been unfairly thrown l2q9 >> do you feel that way? >> i'mx surprised at dan. that's a lazy babyj with the bh watere1 is flat-out lazy i'll give you a pass because c o you're7$in san diego.e staring down your nose.

>> but i'll say this.j home depot now is trading basically at a marketqmultiple maybe it got over andfá trading 3 times forward earnings, but the story hasng ñchanged. at these levels, to me, it's a >> i mean we're probably going to getf better than the guy th 14.5% operating margins out of this business. again, seeing great growth they are probably goingi] to gea one-time boost out of ticket sales. in that kind of a situation, and flat-out, theyo outperformed lowes year after w3ear. their retail sales per squareçó foot, 2 -- home depot does it organically. >> home depot also moving int/ç seasonally strong periodl wher you could hear guidance on the

óa5 yards ofe mulch, doing his thi. for al> contractors too much bigger thane lowes still ahead. facebook having one of its worst weeks since going public, plunging we'll tell you how you can get -- how bad it could get, plus got a question about thet( crazy market, tweet us our traders will do their best to answer them later in the show we're live don't go anywhere. we've got much more "options action" right after this 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.

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

does it look like i'm done?yet? shouldn't you be at work? [ mockingly ] "shouldn't you be at work?" todd. hold on. [ engine revs ] arcade game: fist pump! your real bike's all fixed. man, you guys are good! well, we are the number-one motorcycle insurer in the country. -wait. you have a real motorcycle? and real insurance, with 24-hour customer support. arcade game: wipeout! oh! well... i retire as champion. game hog! champion. welcome back to "options action," time to take a look back on one of the winning trades twoçóweeks ago it was said toi unfriend facebook. that worked out pretty well. >> onpi"options action,"xdit'w risk less so we canxdmakeñ mo. and that's?exactly whatx thi

with their bet on facebook 9 t ditch the social mediao giant. >> take the money off the table. >>o hmm just shorting the stock could lead to socialasuicide.ñ >> no!q so to make a bearish bet, mike instead sold it for $5.70 now, to keep all that money, mike needs facebook shares to stay below that 185 strike price. above that, profits will trail off. but mike won't see losses until facebook rises above that by more than the f$5.70xdhe colld or aboveñ $190.70 there is a trade off

e)á&x.te losses. he has this. so to limit his risk, he then bought the april 195 call for $1.90 and created his bearñ ca spread collected and the $1.90 he spent on buying the higher call. he gets to pocket $3.80 on ths+ cents. that is the most mike can make on thexnç trade and to keep all of it, hee1 nee facebook to stay below thex 180 call by april expiration above that he starts to see losses but they are limited to the difference between the strike of the call he bought and the one he sold minus that credit. or above $188.80 by aprilçóex-r ri ration meaning mike can do somethingq even the most popularñipower couple can do, make money,

whether &pcebook drops,e stays flat or rallies slightly ñt, facebook shares have fallen 10%. now, "options action" fans all over the world want to know one. what will they do now? well you might have noticed thatncarter is on the rescue tonight. he's!in utah but he did sends a little video. >> havee1 a great show hi,xdocnbc facebook, keep selling, market not good, great weekend, bye. that was carter and his son. you heard what the chart master said, keep selling, facebook. >> we clearly have news we didn't anticipate which is worse anticipated. you could actually roll this trade down. >> are yout telling me?

>> fine elineage. >>f carter braxton? is what's that >> i don't know. do youf have anything to s about facebook >> no. i have somethingf to say. valuation of facebook is reasonable advertisers aren't walking away. as i said last night, it's easier to mine bit coin than it is to leave your facebook account. wait a minute. engagement ise1 going tof wane. >>tx people are -- stuck on bd aids >> did youe sewóelon musk tod? >> i think the sell-off we had in the broad market in february did a lot ofktraders ai] reversal let's goñ back to apple for aw second, wentq from 180 down to 155. if you're ex-pengipecting that f

move now with facebook, i think you're so you're sorely mistaken there's serious fund mental news this is going to take weeks, months, maybe5a quarters to plo itself out to me, took facebook is not the trading vehicle you should be looking for. not at least until we get some morelú)sp)ity about regulation and what this company is going to do and how much it's going to cost >> all right up next, tweets and the final call so lionel, what does being able to trade 24/5 mean to you? 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?

(indistthat was awful.tering) 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! mad skills. education to take your trading to the next level. only with td ameritrade. this is what is your take on i bought a $65 before earnings, what do you think? >> that was the trade essentially i did last week. i think you take it.o you got bailed out with the

market good guidance. i think you move on. >> time for the final call >> stock recovery.i 81, home depot. >> thanks for beingo7 here. >> thank you fore having me thanks for the fans for being so gracious. >> hour time has expired we're off next week. don't go anywhere. >> 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...