tensions back to you. >> thank you mike, quickly final thoughts. >> we always watch weekly unemployment claims on thursdays. i think we'll have to take a closer look given the soft adp jobs number this week. >> i want to focus on brian sullivan coverage this week all the driver of the market today out of time that does it for "closing bell." >> "fast money" now. >> overlooking new york's time square i'm carl quint nila. tonights on fast oil prices posting the biggest gain in three months will the tomorrow opec meeting add more fuel? we'll break it down. tesla up against service gain for the customers why owners of the original road roadster may not be left in the dust. shares in slack and company. rhp how do you trade these. >> we start with the rebound, the major averaging finally shaking off the post

thanksgiving coma and the ending the three-day losing streak are a set of records around the corner or this rally a flash in the pan. >> first of all, welcome. >> thank you. >> [ applause >> the man. >> the momentum killer i just drop the hammer on momentum up. we call these the ifbs they told me in your name that your name at hq is c. quint. >> we might take the quint thing. so, quint, to answer the original question today was a flash in the pan december 15th columns. the december levies the tariffs, the market goes down i would think it trades down to 30, 90 or so handles from where we are now and then another conversation but today was a bounce from the market down three days >> steveo. >> i do believe the market will bounce back even the last two weeks of the year if he puts on

the new tariffs. so i agree with that level too 3,000 roughly in the s&p but the market -- who wants to he will is the market? long onlies want to be long it long short hedge funds will underperform if the market trades lower so momentum is still on for the year end. >> i think it's interesting -- i would say who wants to trade it? if you think about about what we had day or over daefr day. the smh up today the hemss are impossible to read what you can read is the dato data out this morning. adp numbers clearly tell you whatever you want to say when we talk about the u.s. consumer i'm not telling you the job market is falling out of bed. but the three month argument, the six month, nine months average. that trend is down jobless claims tomorrow. a benign indicator but two straight weeks of jobless claims terrible and the payroll number on friday i hate to play the role of dan nathan

danny downer if you look at the ism services number again for people pointing out i guess guy it is in the camp. the macroisn't doing anything to get you excited. i agree with steve that ultimately as we say trying to game trade war rhetoric has been losing battle and the market wants to go up if you look at bull-bear is sentiment the bulls are in charge. >> when you look at manufacturing pmis they are getting better when you look at the bigger scheme of things that's something. looking at the united states, we have a strong consumer and let's just think about this for a second the president kicked this down the road many times. the last time he kicked it all the way a year out and our big reaction was we're down 280 points. >> right. >> because of that i think you have to be a little more conscious of the idea that we've had an interesting and very successful earnings season we have gone through. that's been strong and because of that that volatility move yesterday -- it moved the last couple of days merchandise, tuesday strong to the upside looking at that, carl, up to 17,

okay 17. one% moving in the marketplace. >> when you look at it from the perspective, okay what happens december 15th. well there is a good chance we kick it around again don't get a whole lot done maybe a phase 1. i'm not sure how big phase one is anymore in terms of the markets. we give a positivity to it but outside of that, carl i think it has. >> who shorts the market injury it's genius the he decided it up into phase one and future phases. last year we made more progress on this trade this year yet the market screamed higher people are nervous about shorting how do you do that you get run over. >> until yesterday we thought we had the trade announce zbloomt phase one. >> but even pushed out but the market spooked and you had the s&p ral idea. >> but it was a minor spook. not trying to interrupt but when you think about the move. >> 3% in 24 hours.

>> and the volatility didn't tell me the world was spooked. >> the more important thing to me is that the s&p had run 10% in 41 sessions and that to me tells me that the market feels good about a trade deal and yeah, i agree with everything you guys are saying this is a hiccup the last couple days we have seen this soemtsd in the last year that's not something you should trade on. that would be scary. >> pete's right. earnings good. but earnings growth is slowing over the last couple years no denying that. the president is a wildcard. the adp number was the worst in nine years people think the fed has the back. >> business activity was the worst since '09. >> that's ten years. think about where we were. >> you just said something the fed has their back. >> i don't think they do. >> if the economic data becomes worse you could have the fed come back in play even with

limited ammo. >> likely to go into easing mode than hiking. >> i think the risk is to ease -- i think the fed is probably out of -- right now based upon even just we had static data they are out of commission until the middle of next year. >> our next guest says the bounce may not bounce to the new year chris harvey at wells fargo what do you mean. >> our price price target is 3088 about pennsylvania 1% away. >> what kind of risk reward, upside, down sood. >> limited upside and growing downside more importantly as we looked forward you squeezed a lot of juice out of in. investment agreed credit spreads are 1007, 110 basis points thehealth premium looking at single digits next one, two, three years. i keep hearing my father's voice in the back of my head don't screw it up. you're up 20%. >> did you do that a lot chris

was that an issue going up. >> a lot of therapy. >> years. >> all right what's the biggest positive that's on the horizon for the market then? >> biggest positive? we've been looking more at the negatives than positives because the positives have been the fed cuts rate. fed is send sentiment poor now now it's positive. trading tariff needs to be to get dp five minutes, five days five months. and so we're looking at the negatives. they are 401(k)s look at my dad my mom, they have to take money out of the 401(k)s if you look at the fed at some point in qe, not qe is going to end. we'll have less liquidity in the beginning of next year more importantly i think people's expectations are too high at this point and we need to ratchet things down and we haven't talked about the political risk at this point. >> chris i've asked this before but again, the u.s. equity market went to vix 17 yesterday but me andreaering around 10

sfwloot bond yields that suckic moves major process. if that equity market we'd talk about it every day on the volatility 10 backups moves on a daily basis. is that concerning. >> that's highly concerning if we see 1.5 in the 10-year risk aversion comes back to the fore. you have 10 basis points moves every day backup that tells you the market is jittery. if you see that catch a strong bid it's hard to price risk assets sigh higher we continue to watch that day in and day out. >> but the problem is you went off a litany of things negative in the market the market asset them up and pit them do you feel like the they're two for q1. >> we're bringing down fourth quarter estimates. all of 2020 all of the estimates are too high

zero to 5% growth next year. and people are in the high single digits at this point. they have to come down. >> the 12-month target if you publish one. >> pacing ourselves at this point. we're putting. >> you see a down year next year. >> not a down year but not a lot of great opportunity to the upside at this point next year is going to be the year you want to trade and trade your book. the opportunity will open and coalesce quickly we'll have a lot of spikes in volatility the decay will be fasts but a lot of opportunities will open up >> is there a sector you are looking at you say, you know, it's moved but i think they have more room to run financials where is it you'd say i'd look with less risk on but still risk in the market. >> great question, great point. >> upgraded banks in december. they've run up 35% we would love to see them pull back and if they do we jump back in financials in a place we want to put money to work longer term. >> you started this with the context of no growth or growth

not that great what does that mean? put a number on that what's the chief economist say what's bad growth. >> bad growth it's not bad growth it's not great. globally i think they are looking for 3.2. what we're looking for is in the 2s domestically and eps is zero to 5%. it's not negative. it's just not great. and how do you price multiples higher after you brought rates down credit spreads down after you had the fed cutting rates and after we priced in so much good news? once phase one is done i don't think we have phase two for at least 12 months. >> the market knows and understands that, right? >> i. >> i don't think so. >> look at what we have seen the last couple days phase one is done, done, done. it's not done. market pulse back. we may not get phase one done until march. and now the question is -- somebody said this earlier is what are the expectations? is phase one going to come in in line or is it going to be beat expectations or less it's hard for phase 1 to beat

expectations at this juncture. >> chris thanks. >> thank you. >> appreciate that. with that you can't say sentiment is topee, right the with narratives like that. >> once we get a trade deal dwun when what screwed me up is dwiegsz it up into phases. they pushed me out into when you sell nacelle the news event we are seeing estimates dictate direction. wherever the estimates are that's where you go. but i believe from now to the end of the year the markets will move hire. 3250. >> tim. >> i don't want to put too much pressure on chris and he is not a chief economist. but the u.s. economy growing at 2% this market is child support 1.7 and long-term rates and where the fed is going i think what worked has been the bar bell of discretionary and the high growth names and then go for value some of the industrial names if we grow at 2% next year and i think it's 1.5 to 1.75 but i think you have that

dynamic. remember also the breadth of the rally has been in every corner i think that's what's supported this market and i think you have to be fearful of that leaving you soon. >> yeah and i think the president is a wildcard. i think he feels and said this he has equity to play with the stock market giving him the rally. i think he will use that equity the next month or so injury in his mind he says to himself in the sprung this is when i'm getting this thing on course that's when elections are won. from now until then it can be dicey. i think the vix at wherever we close is way too cheap. >> and involumes in the derivatives market to case's pinpoint last thing, financials even with the run carl, they are cheap and potential there for much higher levels. >> all right, guys coming up, we go after hours action in slack and rh both companies had results. we're breaking down the headlines. later on oil prices getting energized in the session is there opportunity in this beaten down secretary summer stick around we are live from times square in

new york city. and there is a lot more "fast money" after this. guess who just got reinstated! well, not officially. nervous? yeah. yeah me too. don't worry about it, we'll figure it out. i'll see ya in there! just ok is not ok. at&t has america's best network, now with our best plans, at our best prices, starting at $35 a line for 4 lines. new from at&t.

well back to "fast money." time for earnings whip backup shares of slack and rh formerlily known as restore ace hardwareway on the move after

reporting results. full team coverage meg tyrrell. deedra bosa in statutes san francisco with details, dee. >> carl slacks has to pull in more investors and paying competitive environment. the the call under way and stewart butterfield threw shade at microsoft pointing out the overwhelming of majority of customers are office 365 customers he says they choose slack because of the use are experience acknowledge being the microsoft 20 million active daily users questioning how it's calculated saying they could be forced migrations the stock is it turning around and gaining ground in the after hours as the call continues. the company announcing a change to the board of directors that i want to mention. michael mcnamara joining the firm and one stepping down. >> pete, the back and forth

between those two microsoft and slack interesting. >> slack trying to attack the competition which makes sense. they should go after them. but the reality of the story is that microsoft own this is they have a growth rate far better whether forced or not people are use attention teams. nef a huge advantage 20 million daily active users for microsoft. but i will say this about slack which i've been critical, they're getting closer to some day making money i don't like in this market we talked about the market a minute ago the wide range of the market in a market like this carl i think it's difficult to own companies that don't make money. they have great revenue, growth. still aren't positive side like uber lift zblooift you are sighing that microsoft gained 7 million user since july. >> right. >> i don't care if it's forced migration she shouldn't have brought that up. then that makes me think they can't win. because if people are forced to play microsoft's game they have to win >> they're the big dog and own

the space. >> long microsoft. i think pete is right. once they make money you could see this thing tick off the bottom but until then i'd rather have microsoft that has a lot of levers as wilf would say. >> levers. i think they're levers but i wouldn't say microsoft on relative basis everything everything you say valuation is not close. it's a different business and composite with microsoft but slack problem is the valuation and i agree with pete you have to make money here. >> quick though, the stock given in quarter, actually pretty good by their standards -- paid customers up 30% year over year. you can go through margins better, although still clearly lutesing money on the right trajectory i thought given the run the suffolk had to the downside, the short interest, given what we heard, in stock should be over 23 given the quarter and it's not close the market doesn't like this i think that's the tell. the stocks should be higher it's not that's all you need to know. >> the news alert this afternoon on boeing. phil lebeau has that

phil. >> carl the chief engineering for boeing john hamilton resigning from the company most notably recently known as the person sitting next to dennis mulan rk on capitol hill for a couple of congressional hearings and asked a number of questions about engineers or employees at boeing expressing concerns about the development of the 737 max so, again, john hamilton, chief engineer for boeing commercial airplanes is resigning the company says he planned to retire last year he pushed it off they said to work on helping get the max back his departure now the latest executive to leave the company as they continue to wrestle with the 737 max and this max saga whatever you want to call it, crisis going on since march, well it's continuing to have an impact this time it's in the form of united aerials ordering not boeing airplanes but airbus airplanes. one factor is that boeing did not have a plane to compete with

the a 321 xlr, a long range plane replacing boeing 757 for united airlines. now you have a number of airlines including several in north america. united american, jet blue they ordered the new airplane from airbus becauseany can't arrowhead one from boeing. boeing doesn't have a plodle to compete with the xlr it was widely expected they would announce one perhaps at the paris air show earlier this year but clearly they are focused on the max right now and said they have not made a decision on quota middle market airplane so as a result you have airbus racking up another order and again boeing says no decision has been made on whether or not it will come up with a middle market plane one last thing look at shares of airbus versus boeing this year. and you will see a dramatic split between the two shares and people will say, well, look, boeing still holding in well

despite the fact gnat max is not being delivered. but here is the difference guys. look at the orders that have been racked up this year 721 by airbus. negative 95 by boeing. that says it all why investors a at a minimum have said i'm going with airbus for the foreseeable future as opposed to boeing. >> phil appreciate that phil lebeau executive the departures obviously order disparity we don't know what they owe the carriers later on a that's cramer's big point why is it hanging in there. >> there is a couple of reasons including the duopoly and not places to go the order book for boeing is robust and the company i think has been reasonably in guiding expectations on the max and coming back online they have 400 planes in inventory you are seeing them crank them out united and a couple other air handlers people are critical of they being exposed to boeing and give delta credit for not having any exposure. i think some of in is also hey

about united trying to throw something back at boeing because this is a difficult point for united. >> you know what's interesting, i could make this analogous is the china supply chain issue what tim said that companies trying to decrease dependency on boeing and that's going to be going forward. that's only increasing so i think that boeing has hupg in there but ultimately it's probably a tremendous headwind to two to five years out that we're not thinking about. >> where do they go? i hear you you look at the relative value chart that chart has been priced if. that's yesterday's chart. >> because there is still stuff hanging out there. was it enough of an executive departure? is there deeper cuts through the executive team do they want the ceos head at this point where are they going through this i don't think it's over by a long shot. >> i was going to say basically i look at the cart from mul phil and say -- i understand the arthur having i look at boeing what else could they throw them

at this point? that's my point. >> people start buying a different plane the same way that china wants once the trade deal is over apple migranted a way from chf 50 other companies 50 s&p companies thinking how to diversifying the supply chain. now you see it wastler. >> but the free cash flow we will always watch. boeing will stand strong with that look at the backlog, unbelievable so it's still think you look at it. >> asset duopoly. >> i get that. >> which is different than leaving china to go are wfr you want. >> china was a monopoly. not a duopoly. >> it was, but that's over >> let's get back to earnings restoration hardware in red after results. meg tyrrell back at hr q. >> the stock off slightly after a big beal on the bottom line but they had a huge run in the quarter helped by berkshire hathaway disclosure of a 6.5% stake. the hold up in face of the

mctrafrs but deedra talking about throwing shade but gary friedman evoking we work saying growth without profitability has been unjudge justly rewarded. valueses placed on the mistaken belief that online retail is better nan a store retailers hope for the same valuations and grifo driven by fear as not being viewed as fashionable as allocated capital to unnaturally grow business this results is shifting not lifting seems. driving down margins while physical stores are left to rot. we have taken the road less traveled and believe like robert frost it will take a different difference rh stock doing well. >> and the frost reference very nice. >> robert frost. love it. >> you -- you shouldn't invoke robert frost the genius is that not

mentioning the guy's name. he skrupd up the whole thing like robert frost. he lost -- i i'd sell on the back of that at 16 times earnings the stock is relatively inexpensive. it's had a huge run a lot based off mr. buffett's investment which maybe him one of his minimum ons doesn't matter i think the stock goes higher. i understand why people are taking the profits it's cheap. >> it's been a crazy year for restoration hardware up 70% this year they reeighted the long-term growth i think people wanted more but you get back to valuation, 17 times 20, 21 this is a stock that's a huge beneficiary of the tailwind in the housing markets and home restoration markets. i think these guys have a bit of a differentiated brand. >> and you mentioned migranting spli chain. >> and raising prices ahead of the tariffs. back in june the stock jumped

23% based on guiding beating on revs and eps i think this was positioning into this print. when you look at it after house it's down flat to down i think people are looking for as tim said a bit more bang for the buck now it's time -- >> it's a measuring stick of the economy really let's think about it everything is expensive there. i don't care who you are it's expensive at rh but tells you a lot about the company. look at the s&p. it moves with the s&p. if the s&p gets hit hard for whatever reason we are seeing rh go down and there will be opportunities but at 16 times. >> you're not buying another chair. >> you might hold off on the $100 chair but if they got it to 3,300. it's mine. >> for more on the earnings movers go to the website cnbc.com here is what else is coming up on fast. >> announcer: we're coming down to what could be the biggest ipo in history will saudi aramco live up to the expect aches sns. plus tomorrow a big day for

biogen the report that's got investors' attention and what it could mean for the stock. all that and more when "fast money" returns police officer: excuse me, sir. sit tight. yep, sit real tight, speedy. cause you've got to call it in, police officer: radio to dispatch... type it up, hey, dispa... (feedback ringing) deal with that, dispatch. write it up, walk it back, police officer: slow down out there. and call hq-again. (sigh) (siren blaring) this isn't working. introducing samsung mobile first responder solutions. with the galaxy note10, you can get real-time data at the scene, all on one device. samsung business solutions. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through.

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. welcome back to "fast money. oil prices summarying more than 4% today on that larger than expected drop in inventories the moves come as the market gets ready for the opec meeting kicking off tomorrow in vienna the rally providing a boost to energy names the xle gaining more than a% on the day. but even with the rise the energy remains the worst performing sector this year. where is the opportunity going into 2020? tim we will talk about aramco the next week or so. >> i think we will the vienna meeting is often a lot of politics and theater but we might get something out of it not just stenting the existing

cuts but possibly going deeper to support aramco. the most important thing is we have gotten to place where e and p and the energy secretarier is so oversold it has to be interesting at some pin if you look at exxon there is cap x spend and the core profitability of the company is improving. i would point to the fact that the energy sector as a percentage of the s&p weighting is now 4.2%. twaps 16.5% ten years ago. s in a sector left for dead, no one felt the need to own it. >> but i wonder if that's the death knell. it doesn't matter doesn't move the needle so no one gets back in the guys trying to imitate all the indices don't have to be there anywhere a buy it everyone is the closet indexer anyway the only one worth buy something the refiner. the commodity? glut supply issue going forward. >> beta names in the derivatives

world we might have a chart i don't know but in the derivative's world the options world in has been a dominant area the last three days in a row carl i talked about it the other day on the halftime show it's unbelievable how much paper we see in the energy space right now. absolutely extraordinary as a matter of fact, yesterday was about 50% of the unusual option activity we had seen in there. about 11 or 12 different names that have hit. some names hitting multiple times right now. it's unbelievable names so it's beta names and names forgotten royal ditch. british petroleum. bp we talk about about exxon, chevron, varl owe, some of the names but the other names. >> the underperformer for the year if you go back two years, three, four five years, the xle done nothing you have sat there -- i agree with the plays and tim you have done -- dsh you've had the trades where you can can make a

lot of money where you can see let eye of money stocks could trade up 30, 40, 50% in 30 days. but other than, i don't know if they're invest sfwloobl and the beta names move extremely fast then the derivative side of the world you get a stock up 5%. those options are probably going up 30 or 40% so the derivatives world really gives you the tune to get the torque in the. >> sum ber jay since october up 20%. talking about since october talked about the double bottom at $30 now 36 and change now you get analysts upgrading deutsche bank upgraded to the 42 price target yes on the broad scope they underperformed but still go up another 20% and still be relatively cheap i think slb is okay here. >> there are fundamentals going on in the oil space not terribly sexy but consistent. rig counts up for 15 straight months you haven't seen in in five years. you have a dynamic where you are seeing upstream spend up high

single digits. that's positive. those feed through to companies left dead in the water first of all it's not a trade for 10% of the portfolio this is a trade to be looking at a higher beta name that started to show life and the chart actually is a very different chart than six months ago. >> we mentioned aramco earlier and hours away from getting pricing on the massive ipo for that we turn to leslie picker. >> that's right saudi aramco ipo could be the biggest in history surpassing alibaba u.s. share sell in 2014 if aramco prices the high end of the range it would raise about $25.6 billion. topping the abel aire 25 billion-dollar raise in 2014 the order books have been closed for institutional and retail investors. which were reportedly met with demand that outpaced supply that's available but many american and european investors which would normally take a look at the deal at least

have balked. aramco cancelled road shows to mathematic the deal in the two regions. and typical ipo investor i spoke with have been turned off by several factors, namely the esg or environmental social governance implications of owning the saudi aramco stock opinion on the environmental front is it's the largest oil produce processor. singaporean investor decided against investing over social concerns it's controlled by the saudi government which has a poor track record on human rights and on governance, the saudi government will hold majority voting power and influence the company through regulations. now, aramco is also quite expensive. looking to debut at a $1.7 trillion valuation, a premium on an enterprise value to ebidta basis relative to peers. those who are buying into the deal are attracted to aramco's number one position in oil production globally as well as the potential for more than

$75 billion worth of dividends to be paid out annually as well as in 2020 aramco will be listed on the local saudi exchange and the shares are expected to begin trading in a week. carl. >> lp, thank you very much for that guy do we think the social issues will be a headwind. should be with you unfortunately won't. we can play this with facebook, and across the board and they should be issues but people want to make money. with that said we're in a place in the world where they will be an issue five years from now absolutely we'll have the conversation. but right now people will talk about but i think if they can make money here they will try. >> the biggest take away from me now aufld now you want to talk about the top in the market someone ringing a bell all of a sudden time to pay they want to give pors a shot at this i know it's a percentage of the entire deal. but to me that's them ringing the bell if they tell you this is the high, then i think you should take the warnings. >> i just -- think about how this is trading where it's

trading and who is going to trade it too i don't think this is necessarily the global listing that makes it a benchmark. and also as has been pointed out, look sovereign wealth funds including the saudi arabian welt fund it will be bought but who owns it. you want institutions in fl concerned about esg and governance and control issues. if they are running for the door why do you want to follow in. >> is it large enough to take oxygen from the broader market. >>ening i don't think so i think the market so so ready carl there is always enough around for therest of the market but i think early on people will blame that if we see reactions to the market but i don't think that's actually the case. >> all right coming up, tesla promising some easy repairs for some of the the most loyal skpers we get details. reckoning day for biogen with results on the latest alzheimer's drug trial all that and more when "fast money" returns my parents never taught me anything about managing money.

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money. tesla giving a much needed tune-up to how its repairs to the first car. the company sent a email to roadster orion saying they get dedicated service advisers technicians appear repair centers. they have not made the roadsteres since 2012 no longer making spare parts cnbc first broke the story and the reporter joins us with more. what do the owners get. >> so now that tesla has been mass manufacturing vehicles, the roadster owners, the original customers have been feeling a bit neglected appear and jerome gillened the president of automotive at tesla reached out to assure they will have dedicated service what they have now amounts to inbox. with where there were promises of dedicated technician with specialized skills and repair centers. >> is there any sign this might be extended to owners of other models >> tesla has been grappling to master service as it scales.

they're like a teenager. any used to have the infinite patience of the customers now the cars have been out for longer, some out much warranty and they own the dealership or tesla doesn't call them dealerships. it's been a real struggle. i wouldn't say this kind of special attention should be seen again. i mean, ostensibly any service center ought to be able to handle any car coming in whether newer model s, model 3 one of the forthcoming vehicles this felt like outreach appreciation to encourage those old advocates for electric cars and tesla to still feel good about the company and to feel reassured. >> laura, it's tim how much of this is driven by broader service issues for the entire fleet one of the things that seems to be a news point out there is that the company is going through the pullback if in cap x and expense pps. you've seen it in service quality. is this placating a smaller

group of folks light on details is what i heard you say. >> i think that's exactly right. they haven't increased cap x and they haven't created the number of additional service centers you would think to handle the entire fleet, especially considering the success of the model 3 and the international expansion. so to me in sounded like a way to keep loyal customers loyal. in this email we received from -- you know, the owners really excited about it, jerome said if you want to trade in the old roadster you could put it toward a newer or next gen roadsteres which look fast and beautiful. but who knows when they come to market i don't think tesla has mastered service yet. but it's trying. this is --s in the idea that they are aware of it and at least being leveled up at. >> one of the things that goes with the way they have decided to organize the distribution

business model check out laura's full story on cnbc.com what ises thinking on tesla around the table? you seem to have longstanding feuds. >> i have a short in the name. my view is the profitability is something we need to see sustainableable. that's the issue it's not whether it's a auto company. or big data. it's whether the company has the truly to be free cash flow positive in an environment where i don't know their funding opportunities are what they used to be. >> pete. >> i look at it different than tim and been more bullish than bearish on the name. but after the run it had i'm not ready to still be in there we talked last night i was in this stock for a while for the run to the upside running another $est to the upside i can't see it right now carl. i'd use options whether or not bullish or bearish that's the only way to trade it right now look at it it's costing you a lot to short the stock if you want to being long the stock you are looking at a stock that was $18 now.

>> define the risk. >> in a handful of months up 80 to 10 oh% depending where you look at it from. but it was overbought. worked it off quickly. and found support around the 227, 328 level if you want it play it long keep a tight leash but it trades on momentum as quick as it went up if it brakes praeks down the 328 it's going. >> citi you said the target to 222 from 191 still non-believers. >> 180 in june 360 a couple weeks ago rarely do you see a stock moving from october in a straight line without re-testing that. i think 270? the cross hairs here. >> guys still ahead there could be a breakout brewing in one biotech name we'll tell what you it is and what it might mean for the rest of the space live at the nasdaq in times square more "fast money" is still

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welcome back to "fast money. tomorrow could be a marriage moment for biogen investors. if you recall they surged back in october after the company said it would seek regulatory approval on the major

alzheimer's drug tomorrow biogen releases details on the drug. meg tyler with what to watch. >> seven months before that biogen stopped development of the drug after analysis suggested it was unlikely to work now the reversal after the company got additional data, adding back $10 billion in market value for biogen. set up the jp morgan kaultd. the biggest non-election biogen story of the next 12 months. the comes tomorrow in san diego. despite what the stock has done there is a ton of skepticism about the data first because alzheimer's has been a notoriously hard area to develop drugs. the cause of the decease are disease is not fully understood and because of the nature of biogen data. analyst say it's far from convincing they are hopeful the presentation will bring clarity both on what drove results and safety of the drug they peg stock moves of 5% to 10% either up or downside based

on what we hear. but it's possible the update won't bring clarity. kicking the ball further down the road to the fda. biogen plans to file for approval in early 2020 meaning its possible gnat fda decides on the drug late next year. michael yee suggests this there may be political pressure to approve the drug given the impact of prevailens of altz heimers. it puts investors in a tricky spot, not convincing data but first the possibility of alzheimer drug fruitful in 17 years. >> huge news meg thank you. pete what do we think after the initial run up. >> it has been a widow make are in the drug industry for anything in the alzheimer's world. we have seen the stock hit hard because of that. when they brought it back being look at the big rise in the stock. yes, meg brought up all the different great points about all the regulatory and sort of the pressures as well to get something forward. we are talking about early to

2020 and getting something by the end of the year. that's interesting i'm in the calls right now i bought those today and my rationale was i'd like to have some sort of a feel in there because if anything positive i think it's more than a 5% move to the supside and 10% downside i'm going to lose because of the calls i've got. i know exactly what the risk parameters are going in. >> pete knows the space with he will but for the average person the ib is a better way to play. as pete said in march they lost 30% in biogen. october up 26% and it's 4% basically year to date if you bought the ibb, you're up 24% and you get amgen. gilead ver text lumina and biogen in the top holdings. >> and agree with that except for the fact that the ibb is up 25 peppers in the 40 sessions and back at 120 resistance after drastically underperforming the s&p hon relatively bays from the early part of the year it's now right in hine with the

2-year average i wonder whether this is a recalibration that had the time. >> allison heim esper absolutely the holy grail in the space without question but i think now you know the downside in biogen pch it's 225 or there abouts. injury the downside is more than the 5% or 10% they mentioned but i think the upside if they get it right and it's not happening tomorrow or next week but if they get alzheimer's right the stock is daubl despite the outcome the last couple weeks i think the move is upside. >> for the good of a lot of people investors primed to get big news tomorrow but will it be good news traders in the options market may have itright the right the answer would be a resounding no mike khouw with the "options action." >> first of all a lot of people in the options market and pete is one and we're looking at a reason why maybe buying calls is a better bet than going out and buying the stock but looking at it yesterday we

saw puts outpaced calls by 2 to 1 that was true this morning and enthe end of the day it traded two times the average daily put volume right now the options market implying a move 7 peppers high or lower by the end of the week after the news comes out where i was seeing the openingist was in the weekly 275 puts trading for a little over $4 whiers of the puts are betting the stock falls bloi the 275 strike price by the premium they paid suggesting the 7 plus% move to the downside as pete pointed out, the calls if you were buying the at the money calls expiring this week those cost you 3.5% of the stock price. if jeffers is right and the stock has a 10% move down even if a count toss it's clear buying the calls would be a better way to make the bullish bet even though the options markets price in a larger move than the stock typically sees. >> great insight thank you for more "options action" tune

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arbors up next. >> welcome back to "fast money" a live shot of rockefeller center, the christmas tree crowds gagtser as that beauty is going to be lit up in a few more hours. as we rock around the treep let's also rock around the desk with the fine trades. >> that was really smooth awesome. >> i'm giving you jet blue huge call buying in there today. i think it's going higher. >> guy, i don't know what time we meeting over there, a special night. >> tim. >> xle we talked about energy if you owned energy and long the xle against the spy the last five years equal parts dur down 51%. it could go down but we are getting a place where energy fundamentals i don't have. >> steveo. >> barb company. a turn around story they are deleveraging, the potential to buy up to 17% of the company back robbery robins there vocal on the name bac i'm fl it.

up 50% quickly i understand if you want to lock in profits but i'm long. >> the cue when you hear the song what movie. >> home alone. >> home alone. >> put the ding ding ding. i don't know wha my mission is simple, to 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 want to help you make money. call me at 1-800-743-cnbc or tweet me @jimcramer. nasdaq is climbing .54%. a rapi