overseas because the last couple days we've been greeted with global bouncebacks. >> whuten, overseas, the past three sessions as a matter of fact. >> finishing with record closes though today with the s&p and the nasdaq we're out of time here that does it for the "closing bell." >> "fast money" begins right now. indeed it does and live from the nasdaq market site overlooking times square. i'm tyler mathen for melissa pleep tonight steve grasso karen finerman, dan nathan guy adami. tonight the tesla bull kathy wood with us why she says it to be headed to $15,000 a share. there you see it today at 734 plus all over tonight's big after hour hovers. peloton, qualcomm. yummy china all on the radar after reporting results earlier today. and later we will reveal tonight's mystery chart.

the stock has been on a roller coaster over the past year but dan thinks it's primed to pop. we will bring you the name and more the biggest stock story of the day, the week, months year so far. the worst day in eight years after a company executive warned the coronavirus in outbreak could delay deliveries tesla slumping 17% the pullback follows a nearly 40% surgeon monday and tuesday so is tesla's record run, guy, finally run out of juice. >> i'm not pretending to answer that because we don't know. but the last two days in context when had a stock trading 12 million shares a day traded over 100 million from monday and tuesday and obviously we had volume again today a lot of people have been blown out on the shortside new people in. for the short-term i think that's as close to a capitulatory top as blow off top as you see doesn't mean the move is over by

any stretch and we'll have somebody on speaking to than but in the short-term i think you saw everything you need to see in terms of the retracement from the levels a month ago. >> in stock burns off a relative strength index of overbought quickly. when the move started in the 300s took about six days to burn off the rsi of a reading of 70 or greater so this was the most overbought it's been on a chart right now a reading of 66. it's no longer overbought. which means it can unwind. the selloff today was enough it unwinded on a technical basis, the overbought status which means it could move higher from here again. >> karen, how do you take apart the selloff? is it parly that, partly the idea that coronaviruscatches u with them in china is it a stoerp in the "wall

street journal" this morning that likened to the high fliers of 2000, 2001. >> yesterday afternoon there was some bizarre activity. hit 968 and closed down about -- i don't know how much from there. where it closed today is $230 lower than where it is at 3:45 yesterday. that's absurd and ridiculous also a bit of nesting news on model 3 delays in china because of coronavirus that doesn't matter relative to the story. i think it's so dangerous on either side, i don't know how -- i mean, it seems like they hit escape velocity and are no longer subject to gravity or valuation or anything like that. we'll have kathy wood on and she has been right she has been right. >> well, just look at this it's been a controversial name and bleeds into the ceo and governance and a lot debated i think on twitter the last few

years. and kind of in a fairly violent way. i would say that that move we have seen the last couple weeks was kind of violent. and it feels like the fever broke a bit. you mentioned, tyler, going back 20 years, some of us remember this sort of activity. it didn't end well for most of the names. when you think about the valuation situation here, if you were a long-term bull, i'm not certain, aside from the mark to market profits you have this week or last week, you feel great about the activity, because if history shows anything this activity like i said has not ended well. and this is a company that obviously, you know they are expected to grow sales 30% a year some bulls may have more bullish assumptions about that sort of thing. but we have to see the profitability. we haven't seen profitability until the last couple quarters that's really going to be the story. my take is is that history hasn't been kind to this sort of stock market activity. that being said, this could be different this time. how is that? i'll leave it at that.

>> people whom say it's different this time. >> you caught that. >> as that's fortune cookie stuff. we talk about tesla bulls and we'll meet one in a moment one of the biggest on the street but preface that, tesla's wild ride many analysts in the dust check out analysts a year ago. average price target was $300 a share just behalf above where they were trading. food it's closer to 500 a share more than 30% below where the stock closed today after that distinct selloff. next guest thinks tesla has room to run naflkt thinks tesla could hit 15,000 a share within the next four years lets bring in arc invest ceo and founder kathy wood kathy, welcome i know 15,000 a share is not the base case it's the reach case. >> it's the bull case. >> what's the base case where in $700 stock is in four years. >> the base case it's a

five-year target the end of '24. it's $7,000. we arrived at that price weighting the probabilities of 10 different scenarios including bankruptcy to be honest. we tried to be as fair and balanced as we possibly could be but our confidence level that this stock is heading for 7,000 over the next five years is very high. >> you take out your lowest probability scenarios, you take out the ones you think just aren't working, or the highly outlandish ones where everything has to click exactly right. >> um-hum. >> on what bricks is the $7,000 foundation founded is it improving margins, the lowering the cost of production of the vehicles as they get up to scale or what >> yes there are three sources for the increase in our estimate -- estimated price target one is as tesla killers entered the market last year we expected tesla's market share to go down from 17% globally, including

china, to something lower. instead it went up to 18%. and the reason. >> 17% in electric vehicles or all vehicles >> no electric vehicles. >> electric vehicles >> this is global. there are many electric vehicles manufacturers in china very low quality but many. what we are learning is tesla so so far ahead of the pack, talking about bels, mercedes and range on a other important metrics on a electric vehicles their battery cost is three years ahead -- three to four years ahead of any other auto manufacturer in terms of the cost declines. every other auto manufacturer will -- if they want to be competitive with tesla will -- i'm including bmw and daimler and all -- if they want to be competitive, like for like, they have to sell the cars at a loss at the same time they are losing internal kbugs engine business

they have a big problem. >> are you confident enough in their ability to overcome what i would call sort of manufacturing hair balls that have struck them in the past and cause them to miss or delay production targets? >> so nothing is in a straight line you can't promise. but what they did in shanghai was unbelievable you know, breaking ground and producing within a year. and i think they are taking the learnings elsewhere, in germany outside of berlin we've been thinking that's a setup for bureaucracy. they have been welcome with open arms because germany doesn't want to lose the auto industry, right. and they don't want to lose the jobs and now we hear potentially about texas. so we think they're going to surprise on the production side now. it took a lot of trial and error -- just like with the falcon rockets when they were trying to land them it was failure, failure, failure,

failure then success and now they've been successful pretty much every time since so i think they've gotten the manufacturing down. >> when you take tyler's question to the next level, do you dig in and get granular on the opportunities when you look sum of the parts is it going to be panels, autonomous drive or batteries that are the new breakout? because when we look to tyler's point, cars in roduction, everyone thinks they're an expert on what any can and can't do with tesla. but is there going to be shockers going forward where there is a breakout valuation on batteries because their technology is so far advanced? >> i think they acquired a company called maxwell technologies and they've been very secretive about what that is doing for the battery technology what i just said to you does not incorporate maxwell. we do think there are surprises on the battery front they have their own ai kmip for autonomous, the only

manufacturer to have one and james wang our analyst who worked at nvidia eight, nine years looked at the specs and said four years ahead of anything nvidia produces because it's single purpose, not general purpose. they wink they are way ahead on autonomous that's where the real surprises are going to be, because autonomous is a recurring revenue, very high margin, almost software as a service-like opportunity, autonomous taxi networks what you have baked in the cake from the street are low margin gross margins, more like auto, in the 25%, 30% range. we think gross margin because of the battery technology could head for 40% on the ev itself and the incremental revenues from autonomous would be in the 80 plus% range that's what people are missing in the $7,000 target in the

scenario testing we assume only 25% chance they are up and running with autonomous within two to three years. >> karen, jump in. >> kudos to you. you had what i thought was an out landish target two and a half years ago and here we are you have another one maybe out land ib maybe spot on. when you get to the 7,000, moderate case, what's it trading at, multiple of earnings what will -- what will that valuation then be? >> so it in five years, again, we don't really operate like that we're just trying to figure out the cash flows and then discount them but one of the things that i'd like to focus on is the reason this is such a -- is going to be such a big upside surprise, is because tesla is riding the convergence of three major innovation platforms conhave vergeens it's hard to annualize in the

traditional world. auto analysts are not robotic experts or battery experts on artificial intelligences we have three analysts working on this model together all characterized by exponential growth we are ready for primetime the seeds for what -- we're about to witness now, not just with tesla, with you about genomics, 3-d printing, everything we do, the seeds were sowen during the tech and telecom bubble the costsy too high to play out for those platforms to play out. the costs have been coming down for 20 years we're ready for primetime. these are three exponential growth trends converging that's why this is so difficult for traditional analysts to value. this is all we do. we do nothing but disruptive innovation because we have never seen as much disruptive innovation evolving at the same time ever you have to go back to telephone, electricity, internal

impulsing engine that's the last time we saw exponential growth. >> i want to get in a quick question from dan one answer from you last one. >> near-term do you expect volatility around earnings there was in the last couple years for instance they sold cars the pat a 450,000 annualized rate last quarter looking at net income it came from selling tax credits. do you expect that to be a big conant does it look like that in other places in the world where you expect a lot of growth to come quick answer, please. >> they're going to get a lot of credits from companies like feet chrysler who pays them $500 to offset we think that. but that's in our marylandles. never include subsidies in the model. what we are talking about right now is tesla is ready for primetime as an av -- ev and av manufacturer. >> all right keefe it will there kathy you've done the homework on this. >> thank you. >> earnings season rolls on with reports from peloton, qualcomm, yummy china and more this

afternoon. the crack team here this afternoon to break it down shares of biogen soaring, and where it could go from here. a reminder watch or listen live on the cnbc app. it's a lot better than that app they used in iowa a couple days >>ouou y wld hope so. >> i'm telling you it knows how to count we're live from times square in new york city, much more fast. the world is built for you. so why isn't it all about you when it comes to your money? so. what's on your mind? we are a 97-year-old firm built for right now. edward jones. it's time for investing to feel individual.

[ fast-paced drumming ]

welcome back to "fast money. time for an earnings whip. shares of qualcomm yummy china. peloton all on the move in the after hours session. we have full-keem coverage to break it down. we are kicking off with a big mover right now. that's peloton diana olick in d.c. with the latest. >> solid beat for peloton in the second quarter since going public but the stock is it falling sharply after hours as the revenue guidance for q q3 lighter than expected. the fitness company reported revenue up 77% annually driven by a robust monthly day sales period and increased conversion from the home trial launched in september. allowing buyers to try the bike for 30 days risk free. it drove higher sales on the

website and sommers and no meaningful impact on the return rate apparently the controversial commercial with the peloton wife getting the bike for christmas didn't hurt. in fact bounced back following the 22% drop in september. appear some said the increased attention from the commercial may have helped. subscribers growing 96% year over year. they lowered the price of the digital only subscription and ended the quarter with over 109,000 subscribers. and added fire tv and apple watch apps with the launch in germany peloton expanded the potential audience dramatically. back to you. >> who wants to take a shot at peloton? a lot of us own them i like it. i think it has a very nice business model they sell you a high priced bike. >> have you ridden it yet. >> just kidding. >> yesterday not this morning. not yet today. but they've got the subscription model where they make 400 a years. >> that's the juice.

i think the stock is down because they pretty much said growth at any price is their current business model to the extent that you miss growth which is revenue or the street is disappointed any way that's painful pach it looks like on the call they said they should be closer to guidance moving forward well, yeah, that would be helpful. i love the product i love the product. >> i think the digital subscription, lowering prices that was on the mind of a lot of analysts, where at this point in the life cycle they should have pricing power. and to have it move it down from 19.50 basically to 12.99 doesn't seem like a trekly bullish call. i think necked have add more elasticity. >> it's not like they don't have competition. the barrier to intro whether from nordic track and sole cycle. >> i obviously work out a lot. i'm just telling you --

>> it's funny everyone laughed. >> i would tell you it's interesting because i was doing a class on the tread this morning and the instructor said if you are not on a peloton bike, to your point this recurring, the streaming thing is interesting is that all the fwis get into process sole cycle will have an app soon. all that competition is coming at the end of the day if this is the printer, ink model it may be a tough one here. >> moving to qualcomm, the stock in the red after hours and contessa brewer following us. >> 5g has been the driver behind development and investment on the call there is intense focus on the buildup of 5g internet and anticipated demand. analysts want to know are the high expectations realistic? but of course coronavirus is dominating the conversation. and the cfo says there is significant uncertainty around what the outbreak does to the supply chain and what it does

for demand forehead sets they are spending a lot of time on this. ceo steve moline cough said they have considered the impact of coronavirus in the forward guidance the range has been widened and lowered. the mid-age just below analysts expectations seeing 80 to 95 cents a share versus estimates of 86 cents a share. all of this is based on limited information because no one can say how long the threat lingers, what it could do to demand as you can see the stock now off in extended traded by 3.75, 3.85%. >> lets trade qualcomm, always the forward guidance gets. >> you went north of 90 recently and pretty much a straight line. chips have been doing well the guide scarce people. i think valuation is reasonable. i don't think it's a terrible quarter. you get a chance to buy this stock closer to maybe $82.

load up again. it's been a great story. this quarter doesn't scare me from that. >> guy just mentioned where the stock came from. obviously making acquisitions. a lot of stock to buy back, with the $100 billion-dollar market cap and given the positions and 5g and mobile and whatever this company on the block an acquisition target for intel which is not in mobile. >> once the coronavirus starts to dissipate, i think you get the 5g tailwind kickback in. a buying opportunity. >> yummy china that stock moving lower on results kate rogers as headquarters with numbers. >> fairly strong fourth quarter for yummy chf. epps beat expectations revenues in line. same store sales increased 2% led by growth in kfc pizza hut sales flat this is the 13th consecutive quarter of growth since the spinoff from yummy

but coronavirus may have impacted sales in a major way. one third of the stores temporarily closed in china. it said same store sales were down between 40% and 50% since the chinese new year holiday in the statement the company said since the start of the year the novel coronavirus outbreak in china has significantly impacted operations in china the situation is complex and rapidly evolving and the company can't fully ascertain the expected impact. however based on information currently available, the company briefs that the outbreak is likely to have a materially adverse impact on the company's operating and financial results for the first quarter of 2020 and full-year 2020 ceo joey watt added despite the challenge in disruption to our business we remain confident in the long-term market potential in china about 9,200 locations there, about a third of them temporarily closed really big numbers we have to see what happens. >> thank you, kate. >> karen i'm told you've been

buying yummy recently what do you make of it. >> despite the valuings in disruption i'm optimistic just like the ceo just said i think the revenue in line was maybe a tad disappointing even with the beat. but i think they get a free pass for the next quarter or two on weakness from coronavirus. they still, you know, expect to expand the store count meaningfully i like it. it was 50 two weeks ago. down 3%. 43 -- >> that's a long-term play you are comfortable with pieing more. >> comfortable not delighted. >> not delighted but all right. >> i'm owning it for the longer term. >> lets go to bob pisani who has news on casper the company priced its ipo, bob. >> reportedly to me. dow jones reports casper prices the ipo at $12 a share, citing a source here that's the bottom of the range. they announced a haircut for the expected range 8.4 million shares 17 to 19 initially

then cut to 12 to 13 process it looks like it prices at the bottom of greatly reduced range. there are a number of issues first and importantly, the days of growth at any cost look like they are over. investors have been pushing back against money losing companies you either have to be profitable or in this case you take a haircut. another issue, selling direct to consumer is a problem. these firms spend a lot of money to get mayor market share and investors are concerned about the costs of acquiring new customers and what happens when the spending stops finally plenty of competition out there from well-known old school firms like temper sealy which is profitable although old school and lesser known direct to consumers like purple innovations. you can't blame the trouble on the poor ipo market or poor equities market. the renaissance etf this is the basket of 60 or so large ipo had a historic high.

form laggarded like lyft and uber and zoom. reynolds consumerer went public last week, trading well on that. the ipo market is doing well right now. >> robert, thank you very much we have much too much personal information on the desk. >> regarding >> including the idea that you have a casper mattress. >> you damn tooting i do. >> i understand that. >> here is the way i would have thrown go to the mattresses with possible pisani. that's italian look at me with my casper. look at that. >> look at that. >> can't argue that. >> and i tell you this not only is the human mattress outstanding, the dog mattresses are out of this world. don't ask me how i know. i'll tell you i find my three dogs on the casper every night with that said, they are making mattresses, tyler. >> they are making mattresses. i know they have brick and mortar where you can see them.

don't the you want to try it out before you buy. >> the problem is they give you 100 nights free por 180 nights free and people send them back and people try to rotate through all the ones you're not sure you want to buy. you take 100 nights on this one. send it back 100 nights on this one, send it back it's a problem for the industry and cost of acquisition and the fact they don't make money too much competition, don't make money. and everyone is sending the mattresses back after 100 nights anyway when you look at valuation of this company or what the ceo thought the valuation would or should be, i can't help -- i don't mean to be a jerk in saying this, this is the wework of sleep >> that's not exactly fair when you think about the issues that -- the corporate governance and this and that and whatever you know what i'm saying listen, at the end of the day, the vc funded businesses to acquire zmers and -- they make a great products i love lyft.

uber uber eats. i love my wework but the peloton but they've been subdiezed. >> you played it. >> it's a slightly different view about the earnings potential and the competition. >> farp to say inflating it. >> i don't know if it's inflating. >> you know. >> are these air mattresses. >> you see the wework of this because the the vc bid up the price over a year. i think wework had other. >> may i address something before the commercial break which we need to go to quickly. >> we do. >> we've been doing the show north of 13 years as you know. and a lot of absurd things have been said in the 13 years. but dan nathan saying it's obvious that i work out a lot is now reached the zenith of. >> are with we doing the peloton challenge. >> we should. >> the "fast money" peloton challenge, put it out there. >> we're all in. we got to go right now you can get a wrap of all of today's earnings on our website at cnbc.com. here is what else we have coming

up on fast coronavirus fears seem to have lost the grip on the markets, with major indexes climbing back toward record highs. and investors now flf turned attention back to fundamentals we dig in. and later, are options traders rolling dice on wynn before it reports tomorrow what the markets say about that stock. we have that and a lot more when "fast money" returns high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes

welcome back to "fast money," everybody. a great day for the bulls on wall street. the s&p and nasdaq posting record closes and the dow jumping more than 480 points with stock touching fresh record highs our next guest says don't

chase the rally. why do you say such crazy things. >> i don't know, stocks going up 10 oh% in a month. that might be a bit of froth china throwing a ton of money at the situation. the fed throwing a ton of money at the situation what we've been saying is you should have put cyclicality on, puppet on risk now you want to start harvests it save the risk for a rainy day. but at some point we have a repricing of risk. take the opportunities to start repositioning the portfolio. there are a lot of opportunities we see but more so on the lower risk side. >> what are the opportunities. >> we didn't like the bond proxies we are starting pick up those. latvia we downgraded the semis we are no the going back to them but at the same time we said take profits on. >> bond proxy reits, utilities. >> reits, utilities, lo vol products, anything that has a

low jeeld or interest rates since testify, the interest rates go down it works and other thing is banks we started to pound the table on banks in september in december we had latden up a bit and get back in. starting to add more risk or actually trying to add contrarian opportunities. >> how about the stuff that's been awful, like energy. >> i got that question today and energy is a tough one for us because we see a lot of value. we're not sure how to extract at this point what we are doing is look are for the best for school reward we upgraded banks in the fall but couldn't get behind energy still looking at it but can't get there. >> you talk about harvesting you told me what you are looking at adding defensive. what would you harvest. >> we've been harvesting the high-risk stuff in the semi space, the technology space. and really that's where we want to take some money off the table because it's performed so well you look at the semi space, the

software space big numbers last year this year that can go further. but we think you want to be a little bit more conserve you want to be patient because at some point we are having a 5% to 10% pullback. >> what could trip it, the trip the market coronavirus did for a few days >> correct. >> i think the biggest fear -- i think the biggest misunderstanding is everyone thinks the fed is being accommodative, buying $60 billion in t-bills every month but repos are rolling off at the same time. with so the balance sheet didn't grow but rather contracted when they realize the heavy lift something done by the fed. i think we see repricing of risk. >> you mention china has thrown money to stem the tide in the stock market do you think we're just seeing window dressing? we know the fed has been accommodative, know we have the rate cuts. and now china and the rest of

the world on the game. but at some point -- lets say we stop getting the increases in the deaths and the cases of corona but economic activity is slowed and maybe doesn't come back on pace do you think there is a chance the stock market right now is kind of just, you know, shading over what could be a slower economic growth. >> i don't know if it's shading over what it's saying is if you are throwing that liquidity at it telling me you are providing that back stop i have going out on the risk curve and down the capital structure. longer term if you are a raging bull and saying that china is going to be strong, spill over to europe. europe to the u.s. and that happens as soon as we turn the calendar phase one will be great. wait a minute, phase one we are hearing pushback on phase one. china, i don't know what's happening with coronavirus we know the prevention is slowing down economic activity

it's seeping into people's thoughts and what i believe is you are going to have a delay of any sort of economic activity. and as a consequence you have to take a little bit off the top. and so your growth or upside is not all that great. >> chris harvey thanks, very much appreciate your being here now we'll talk about it. >> smart man. >> how do we trade. >> he is not gone so i'm not bringing him become. people are underestimating if the fed as balance sheet stopped growing and starts to contract in april, may be when i think -- when they said they are stopping in lunacy i don't think the market's at all looking at that or they should be. and at a 15 vix environment i think they are pricing risk the wrong ray right now. >> the market wants a reason to sell off and it's going to get that and eventually hit the 3 k market that's where people want to get back. >> the biotech breakout. check out biogen bursting after winning a long fought patent case we have the details. and dan has a fast pitch on the stock primed to rev up, we're

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welcome back to "fast money," everybody. got breaking news on the corona

virus. new numbers out of china and meg tyrrell has the details. >> case numbers now above 27,000 come in at 27626 almost 3,000 more cases. they are confirmation 564 total deaths, 70 more than we had yesterday. now, the world health organization saying today that the case counts we got last night was the biggest single day increase since the outbreak began, 3156. so 2987 new cases is slightly slower but still a big increase. >> can you draw any conclusions about the speed of transmission based on the daily updates >> people have said broadly the speed of transmission does look like it is potentially accelerating, tyler. compared to just with yesterday and today, not as big as a jump as we saw yesterday. so that is encouraging potentially. but the numbers keep climbing fast. >> thank you very much, meg. for more tune in to the special

report outbreak: coronavirus at 7:00 p.m. eastern time moving on from that, tesla has been on the tip of everyone's tongues but dan nathan sees another auto stock ready to rev higher at the plasma for the fast pitch. >> lets talk about gm as we are talking about the other one, the tesla, the fever might have groek broken a bit obviously a lot of excitement. kathy wood laid it out on the excitement on autonomous and electric vehicles is big but not thinking about this as it relates to gm would be a big mistake. they guided for 2020 today miraculous the stock was not down you know, ford competitor was down 10% on its outlining here after in strike last year, the q4 was a disappointment. investors are okay with the stock valuation here trading at a midpoint of the five-year range and they possibly see some upcoming catalyst for this you watched the super bowl

you saw king james the goat in the nba is hawk the electric vehicle the hummer released in may. that might be a catalyst for the stock going forward. today the head of the cruise cruise unit, the autonomous drive unit was talking throwing out big numbers maybe $8 trillion market for ride hailing for autonomous they have that in cruise that could be a catalyst. look at technical here this might set up as a good trade into the spring. especially with a stable market. to the charts, this is the 1-year chart a well defined downtrend down about 15% from the 52-week high look at the low last we can. draw a line make a double bottom hold the 33 level. to my eye you might see the breakout of the downtrend and decent news going forward. the last one to look at, the chart since the 2010 reipo after

the crisis you see the trend line as my main carter would say to the penny. that's where you want to stop this thing out mentioning other thing you want to look to the spring and say the ev launch could be a catalyst for the company and maybe some enthusiasm about tesla flows to some of the competitors coming into the market one way to play it is look to june expiration. the june 35 calls with the stock at 35 or $1.805% of the stock price that's the stop. i like it as a defined risk trade here and the stock sets up nicely, fairly cheap there is some catalyst obviously if we have the economicdown turn they sell less this is breaks that's why you define the risk. >> i was asking dan about options. is volatility low enough where it makes sense in gm specifically where it makes sense to play this through. >> i think when you get the at the money that gives you the exposure to the upside to june

expiration -- in february now about four months and pay 5% that seems fair to me, especially for a company that has been volatile and underperformed i would say any good news and you see is it back towards 40 quickly. >> pull out the tablets and reveal how we feel guy. >> you want to start with me i love starting with me. do you know what's the divide used to be tv regis philbin. >> he used to be dan knows a lot. i'm with dan. >> in with dan. >> karen, i'm with dan also. >> go gm, go. >> drawing abilities there but i love mary barra, love the valuation. >> i'm saying not just yet still in a declining trend line from august of 2019. you know it was town to the penny, the 50 day moving average. stock topped out at 35.40s 45 wait until it trades above the 100 day, 36.11 >> the desk has spoken

it's your turn do you buy the pitch gm vote at cnbc "fast money." we will revel the results later in the show. plus check out the bienlen breakout what's behind that move? we'll have dai wetlshen "fast money" returns in two short minutes. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. >>announcer: a bullish three-peat for the markets will will gains kin. get the news ahead of investors on squawk on the street.

9:00 a.m. eastern. watch or listen live on the cnbc app. welcome back to "fast money. shares of biogen surging into the close today on news regarding the top-selling ms drug meg tyrrell at headquarters with the details meg. >> hey, again, tyler biogen won a highly anticipated patent decision. the patent was challenged by mylan. investors butt a 50/50 chance on biogen winning tp it doesn't risk off the table biogen faces another decision expected by late summer or fall. analysts say the win today could increase chances there as well the drug drawing 4.4 billion in revenue. has exclusivity until 2028 bierjen investor attention turns to the alzheimer space where the company is expected to file for fda pruchl of the drug any day that of course is the reason for the massive fall and rise of the stock in the last carrier.

analysts expect the roller coaster could continue as it goes through the regulatory process. >> who has a thought on biogen too hot to touch or not. >> it's not. when we talked about this in the spring the market was discounting everything biogen had everything going forward. i was shocked is traded as low it did and as long as it did but i think biogen is just getting going. this is a plus, absolutely but the alzheimer's news could be huge. you could talk about a stock i don't like to speak in hyperbowl. this stock could go up a twofer. i think we're going there. >> it's binary meg did her spot said it was 50/50 on the mylan outcome. and mylan appealings case. to guy's point on the allison heim esper drug if it comes back and is great, the stock can go up, sky is the limit but if it doesn't it craters

you have the ibb you don't vermont binary you get am again and biogen in there as well and ver tech stick with the etf to buy the space. >> there you see the etf u ♪ ♪ ♪p ♪ ♪ ♪ don't get mad. get e*trade, dawg.

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any thoughts about nike or more broadly? for me the multiple north of 33

is why i mean it's an extraordinary company and deserve a premium multiple it's only come in just a few bucks off the high even with coronavirus. so i've been looking for stuff that has either bounced back a lot to sell or come in a lot to buy. sort of in no man's land >> we'll move from there to casinos. also under pressure as the coronavirus spreads. the major players lower this year due to the macao exposure when wynn reports one options trader bets the stock could be due for a win. options play chief strategist tony zang is here to break it down where are they falling >> wynn reports earnings toth. implying 6.2% move significantly larger than what we've seen. 2.7% and reflects the market's fear on the coronavirus and their exposure in china. today what we saw earlier was a fairly large 806 contract risk

reversal traded. the breakdown of this trade, the seller sold march 20 110 puts and paid for a 150 call fairly far out of the money net/net this trader paid about 5 cents for this particular spread and if we understand this particular strategy we have to look at the risk profile at expiration which requires a 14% move to the upside and 9% move to the downside to break even to the downside but to understand this particular trade, before expiration the trade acts pretty much like a stock so this trader has notional stock value of about $3.5 million while putting just the small amount of capital at risk to take thissing long stock exposure going into earnings. >> any quick thoughts on a trade here >> tony does a great job tony is crushing it.

135, wynn is in absolute no man's land of the i think you'll wait for earnings to see how it shakes out. >> for more options action tune in to the full show this friday at 5:30 p.m. eastern time. i'll be here you should be too. up next, are you buying dan's pitch on gm? it's your last chance to vote on our twitter pollnbfa cc st money. stick with us. right back turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ man, i'm thinking tacos.

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welcome back to "fast money. time to find out if you bought into dan's fast pitch on gm lets take a look. did you say yes or no? sorry to say, dan but it looks like your pitch stalled out. no it was a no. you'll get over it it will be all right. time for the fine trades around the horn mr. grasso. >>s in a name i've been long not performed. i'm suffering but still in it. tse, i think upside is eventually coming. i'm turning blue waiting for it. >> karen. >> i have one also not performing but i'm waiting with it as well ups. i'm looking through coronavirus. >> looking through coronavirus. >> dan, up to you. >> back to the gm, i think you

use stocks 33 stop and also with calls stop the. >> you know it did perform, tyler, you did, stud. >> nice. >> oh. >> so did united health. unh. >> thanks for watching fms cramer right now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. raising numbers usa moving america from buy to strong buy i mean that's what i kept