live from the nasdaq market site overlooking new york city's time square. tonight's lineup tonight on "fast" a rate reversal 10-year yield's dropping where are they headed from here in we dig into the charts for some answers we have eyes on lordstown, sonos and ebay the team is digging in on the numbers. red flag on china. the headline that caused one of our traders to go short. where he or she is putting their money right now. we start off with major warning

from southwest the spreading delta variant. for more let's get straight to phil lebeau. >> you wouldn't see it from the way the stock traded today but it was under pressure earlier in the day. people said wait a second, is this what we're going to see from other airlines. the language was very clear. they said that they saw a dropoff in their expected revenue for the august and september time frame 3 to 4 percentage point and that's because of an immediate, near immediate dropoff in the number of bookings as well as an acceleration here's the language in the 8k. this has to do with covid-19 and the impact it's having on the psychology of travelers. southwest saying the company has experienced a deceleration in close-in bookings and close-in trip cancellations in august of 2021 in layman's terms, people are reassessing whether they want to

take some trips or outright canceling them the passenger traffic levels have been down anywhere between 20 and 30% compared to 2019. that's the comparison you want to make. if you look, you are starting to see a little bit more of a plateau, maybe a little bit of a pull back there in the end of the last two or three weeks. the major airline stocks, savvy zip issued a note is it possible we will hear a similar message from other airlines as they reassess whether or not they will meet their internal guidance, the guidance they give in wall street for revenue projections for the third quarter? keep an eye on the players who really do focus on the leisure market much more so that the business market. by that we're talking about spirit, we're also talking about frontier, jetblue. while jetblue does have a sizeable business contingent as well, let's see what happens with them. that's where you're noticing the falloff, melissa, in bookings

when it comes to covid-19. people are reassessing do i want to take that trip with family? do i want to go where i'm supposed to go delta variant has made covid surge. >> there's the outstanding question of whether or not other leisure travelers will postpone. we've heard about postponements of back to office plans. >> sure. >> that doesn't bode well. people aren't going to the office, they're not going to hop on a planeto go anywhere >> that's a great point. we could see that to a certain extent business travel is so depressed relative to where it was in 2019 that even if there is a bit of a pull back, it really hasn't rebounded the way that the leisure market has we could see some impact there in that case you're talking about the deltas, the america's, the united, who have more business exposure than a spirit or a frontier. >> phil, thanks. >> you belt. >> good to see you at headquarters phil lebeau. should we be worried

we had been sort of seeing this coming we've had a number of high profile events canceled going remote or virtual. new york auto show, new orleans jazz fest. tim seymour, it's not entirely a surprise people are reconsidering their plans at this point >> no. look how airlines traded today you almost get a sense this is something that has been well telegraphed. the investment community didn't look like what was overly optimistic by the airlines you're going to read a bunch of notes today. a couple of folks we called, hunter k, we need to see trazam cuts. >> which is. >> total revenue per available seat miles >> thank you. >> the capacity is down but the revenue they're able to get out of customers the big news is it's actually moving higher. increased costs in terms of getting back to it in terms of peak airport dynamics. they have higher fuel costs and

i think this is part of the story but, again, what have the stocks done? the stocks have largely reflected some of this negativity over the last three weeks. the stocks kind of followed the bond market. the stock market told you where there was concern around delta variant. >> i love when tim uses the synonyms -- >> acronyms. >> acronyms. >> what was that >> yeah. homonyms. >> i'm joking. >> he does a good job with those. as human beings we should be concerned. as traders of the airlines, if you look at the stocks they all peaked in mid april, delta, southwest. pretty much all of them and have come off anywhere from 18 to 25%. phil led off his report. you wouldn't know it by the way it traded today. that's it in a nutshell. they're looking past it. they realized in terms of the stock, i agree, you don't have to run out and buy airlines tomorrow, but i've got to tell

you delta looked interesting to me that's where we broke up from. if we go back to january, you could trade delta against 40 all day long. >> it is amazing we are at a point in the market where we could look past a surge in covid cases. that tells you a lot, steve, about market psychology with the s&p and the dow basically at record highs >> yes, and so a couple things first of all, luv and delta are the two companies that going into the pandemic had investment grade balance sheets so let's start with that so if you're going to invest in an airline through all of this smoke and through all the fires that we're seeing figuratively, those are the two to invest in guy mentioned about the stock, phil mentioned about it as well, but when you look at delta, the death cross. so i know the guys at the desk love the death cross so the death cross is when the 50 day moving average or shorter term moves below a longer term

delta actually hit a death cross and usually that's the pinnacle, not the beginning, of a selloff. so delta hit it, which means that the stock is now viable luv hasn't hit it but it's approaching it so i would wait for that one but both names to me seem like they're more at the end of this cycle versus the beginning and then phil said it as well, we've had some seasonal slowdown so everyone's going back to school luv though, 35% of their revenue is derived from corporate travel you touched on that. i think it's been telegraphed. i think it's expected. these are more of a buyable event versus a sellable event now. >> are you a buyer, nadine >> well, i'd wait a little bit i think the points are all very valid and i think that guy is right here people are looking through i think they're looking to the u.k. as a barometer. what we're seeing in the u.k. is

that the cases are falling off in terms of acceleration they're remaining at a high level and obviously unfortunately the death rate is high, but in terms of the numbers, they're not accelerating so people can take that and say, okay, is that going to extrapolate here to the u.s. are we going to see greener pastures and reopening plays back into the fall people preran it the last few weeks. i would read it. on luv, i'm seeing a trading rake of 48.50 to 52.40, but that means it's a 6 to 1 down side so i would wait until it's cheaper. >> if the airlines are reopening, they are, the question is if we're going to look past all of this in terms of the surge and the reopening plays and bank on them going forward, is this the best way to play the reopening, tim? >> maybe again, i think what we need to be doing with airlines also for reference balance sheets and whatnot, look, spirit is not

one, but they still will have probably over 2 million in cash and receivables at the end of this quarter and so i think we'll have to reassess some of those metrics that we've been looking at i think if you look at delta on a 2023 basis you're looking a the it at a 2023 basis the point is reopening trades. i think whether you're airlines, cruise lines, casinos, other places that are caught in the middle of the leisure space, i think you have a case where going out to that 23 multiple gives a lot of these guys a lot of cover, a lot of air cover, maybe pun intended, for a difficult stretch i don't think investors are going to fault them on. >> nadine said something, guy is right, which is tremendous. >> i know. >> how do you trade it tim mentioned casinos. las vegas sands, this is interesting, it doesn't come up. lvs has traded down to levels we last saw in april of 2020. i think we all remember what happened there i think if you're looking for a

trade, just risk/reward in the casinos set up well. if you don't want to go down the airline route, you're still concerned there, the selloff in casinos has been epic. las vegas sands has been 39-40 >> for more let's bring in sheila kayaglu over at jefferies. great to have you with us. >> thanks for having me. >> should we assume to some extent the other airlines will feel the same slowdown >> i think there's no doubt of that we hosted luv. we heard a little bit of hesitation in the cfo's voice in what they were seeing and booking. they expect revenues to be down 15 to 20% down in q3 they're seeing a little bit of hesitation that's no surprise given what we're seeing covid rates picking up in the u.s. this is a very u.s. air line it's 90% u.s. exposed.

i think you're going to see that across the other airlines as well. >> does this necessarily mean that the other airlines that are more exposed to international travel, there's an even bigger question mark surrounding their projections? >> you know, we're a little bit more cautious on what the delta variant will do. we think you're going to see this level drop out. what we've seen with flight activity is it's down about 60% and we think you're going to kind of trend up this level because a lot of the next level of pickup into q3 and q4 was corporate. corporate for luv is 35% of revenues for delta, it's 50% of revenues, same thing for united. we're going to see flight activity trend at this down 50 to 60% level for the next two to three-quarters until mid 2022 to be quite honest. so you're going to want to pick the airline that will outperform we upgraded delta recently that was on the international recovery

we think they have a lucrative potential. >> sheemila, it's tim. what should we be watching for the next three months to know that their businesses are getting together i don't think we trust the guy dance we're getting. >> yeah, i think they set themselves up in a tough spot. we're not seeing any impact from delta variant. that was mid july. covid rates have ticked up you have to see people cancel bookings and reservations. we're seeing that anecdotally. we're seeing corporates push back we push back our reopening a month as an example. as we see that pushout, airlines didn't price that input. certainly the buy side did airlines are gathering 10% over the last 30 months while we're covered in the s&p and it's up 10%. they over perform 20%.

that's why you saw luv up on this investors are pricing that in. >> sheila, when you think about where investors then can feel safer in terms of the duration of the trade, getting in now versus waiting to see how the delta plays out, where in your space are you finding the most opportunity that investors could maybe take a little advantage of >> we still like these airlines, don't get me wrong i think you're going to see a little bit of a turbulent ride for the next quarter or two. we like a lot. we think it's a stock that could potentially double we think luv could double but delta is our preferred site. our broader airline site is interesting as well. trans line putting a bid on aerospace with 90% free today. so that means companies are seeing value in the longer aerospace cycle. we like boeing, we like trans side we like woodward

>> sheila, great to have you with us. thank you. sheila khayaglou >> you gave us casinos. >> delta gets $40. that's the best run. best balance sheet i would say dal for the airlines melissa lee. >> very nice >> applause for actually doing what you're asked to do. >> for a change. >> which seems ridiculous. >> in terms of sort of down the chain, if you will, some of the aerospace companies, tim, boeing took a test flight in china, 737 max. >> the boeing story has been highly correlated to order books and what we're seeing out of demands and the books. i like what we got out of their sector i like what we got out of where they stand with regulators the bottom line for this company is we need to start seeing free cash flow. you're at 12 to 18-month recovery period. we're looking at the 23 on

airline. that's where you are with boeing i'm long boeing. the worst is behind it. >> nadine? >> you know, i'm sticking away from this industry right now don't mind defense wehave a position in sales which is over across the pond but for me, the duration's the hard time. i think you have to wait a little bit on these before you enter. >> check out shares of moderna sinking more than 15% today. the recently red hot stock posting the worst day since may of 2020. even with two days of losses it is still up 65% in the next month. grasso, where do you stand on the valuation of this company? we had an analyst on with bank of america under perform rating 150 $150 pe target >> so it's interesting so we went from the -- these stocks being the savior on the front of covid, and they were, but now we're looking at extended valuations, as you just

mentioned, and as well as the next line of headlines should be about side effects and should be because this was an emergency use, not an fda full approved vaccine, so there's going to be a lot of headwinds in the next year or so markets always price in ahead 6 months to a year, but if you look at the collapse that you just mentioned, to get to the 50-day moving average moderna has to fall another 26%. pfizer has to fall 11% in addition to the 5% it's already fallen to get to its 50-day moving average what's interesting is johnson & johnson is not extended because it has been the dark horse in the vaccine play it's only above the 50 day by 3.5% if you are going to buy a vaccine play, go with johnson & johnson. the other two have much more room to fall and the headlines are going to go from tailwinds

to headwinds and i don't think it's a proper place to be putting your money. >> i think that's a conundrum for investors though because if you want a vaccine play, johnson & johnson as a percent of revenues, vaccines are much smaller than a moderna or a pfizer moderna obviously having the biggest exposure to the vaccine sort of play in the market, guys that's what you're buying. you're buying that leverage to this growing area. >> a pittance, as they say. >> a mere pittance. >> don't know how to spend conu conundrum, pittance, whom mow nin. vitriol. the nastiness on twitter we got it in spades last night because we said we've been collectively very bullish in moderna, number one. last night we said maybe it's time to take some profits. remember what i said, i don't think it's getting back down to 115. we could easily say 325. the nastiness was incredible it might have a little bit more room but i'm telling you, i

think mow dederna is a real vole so i understand why it's held off. i get it i admire the analysts that put out that call. i don't think he's going to be right. maybe down to 325. coming up, we're taking a deeper dive into today's action. the traders will break it down in just a few. first, all over the after hours action ebay, that stock is heon t move. we'll bring you the details when "fast money" returns your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. this is how you become the best!

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welcome back to "fast m money. earnings report. deidre bose bosa has the report. >> expectations were tempered since amazon's disappointing returns. gmv, gross merchandise value and active buyers, declines year over year. guidance later in the street but ceo has been focusing on advertising and payments to counter slowdowns on ebay's

marketplace. eps coming in 4 cents better than expected. on the earnings call which kicked off 20 minutes ago, ioni said the changes in the marketing mix and product investments have been focused on attracting and retaining enthusiasts, particularly gen zs and millennials. they're seeing strength in sneakers, luxury watches and handbags melissa, despite that slowdown in the core business, ebay outperforms the core value markets. shares a up 35% year to date versus amazon which is pretty much flat. etsy is up 38% the market in terms of price to earnings still trails those two names by a long shot back over to you >> thank you steve grasso, where do you stand on ebay? >> so when i look at the chart, especially from the pandemic bottom, ebay is trading in a channel.

it's actually finding some support at the bottom end of that channel and every time it does hit the bottom end of the channel it usually runs about 10% from here so at lofty levels if we look at the recent highs, but if i look at the price action and the chart, it tells me, it infers that a 10% move higher as far as, you know, risk/reward. so i would say i would be a buyer of ebay at these levels based on technicals alone. >> performance is good this year as dbo had highlighted, the valuation looks pretty attractive of some of the competitors. >> that's not saying a lot the valuation in the ecommerce world don't make a lot of sense. >> so does this. >> well, it makes a little less sense. investors might be excited that they sold off most of the classifieds business and korean business look, i think the story here is one where you continue to see these guys growing at pace or slightly less than pace in

ecommerce growth overall i think there is still a need to have a lot of exposure to this part of the market i don't think you're chasing ebay by nibbling there's nothing compelling in the short term and there's nothing we've heard today. >> the pivot to some of the higher growth areas, handbags, watches, it sort of reminds me of the surge in popularity like real rio. >> when have you purchased handbags lately? >> he has. >> you're making fun of me why would you ever go out and buy full retail for sheinelle bag or one of those hermes and do it. you go to the real real. >> apparently ebay wants you to go to ebay. >> i will tell you, if ebay gets down to 64 1/2, steve will remember this, it was an all-time high in april, sold off, passed resistance, become support. i think you can make a compelling case.

yes, third quarter guidance was not great. operating margins were better than expecting ebay at 64 1/2 you have to buy >> nadine? >> i'm he a little bit lower than guy i'm more at 63.40 if you make me buy it, but i see a negative 16% in client volatility discount. what it means is people are complacent they're not protecting it. it could go lower. you have tough covid comps, amazon, pinterest, paypal. the list goes on that doesn't stop with one quarter. i think they're going to have to dig out for a while. i'd rather go around the world like libre or another type of platform that might have faster growth that doesn't have as maybe tough as comps as these folks that are baked in. >> here's what's coming up next. yields are climbing back and that's pushing one group of stocks into the green. we're going off the charts for a technical take next.

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it would be between now and september if our economy unfolds, i would be a fan of beginning tapering in october. >> that was dallas fed president robert ckaplan giving his thoughts this was after the cpi notched another set of record closes sent the 10-year yield lower for

the first time in six days where are rates heading next let's bring in rob slymer to chart it hey, rob nice to see you. what are you looking at? >> hello, melissa. let's start with the 10-year it's so fascinating. we had the initial bounce back to basically a 50% retracement of the decline from 2019 and 2020 all of the optimism was in cyclicals. everyone was excited about rates going higher the 10-year peaks out at 180 everybody is focused on the economic growth. people are concerned about that. trying to figure out what's happening with the 10-year but it's almost textbook it's retraced almost 50% of that initial bounce back to the 113 level. in the end of july, beginning of august we saw a very nice retest of that 113. over the last couple of weeks it looks like a classic intermediate reversal from a

technical standpoint rates basically came back to the 50-day moving average which we could see on the shorter term chart. that's around 138. that's a fairly natural place from the technical standpoint. we expect rates to pause there's a lot of support around the 130 level. the up side is closer to 145, 150 and that's, again, another 50% retracement of the decline we've seen since february. i think the implications for that is if we start looking a the a lot of other areas of the market, notably cyclicals, banks, twrransports, they've be tracking with the 10-year lower. many of them have come down to the 200 day moving average or in that zone. so we've had all of this optimism in february and march turn into a lot of pessimism on cyclicals. we've been telling clients to start looking for bottoms developing in some of these areas. it's convenient that the regional bank index or etf is up as strong as it was and the transport index, the two that

they're looking at here today. they've been themes we've been discussing and it really does fit the profile of going from excessive optimism to a lot of pessimism. incrementally what we're seeing is a leveling out of that stair step fashion of stocks, cyclicals in particular, pulling back to their longer term up trends i think they have another leg up they could lead all the way through to the end of the year for that matter. on the other side, you see the growth stocks which have just started to run this ebb and flow between secular growth and cyclical growth i think the advantage is to the cyclical at this point. >> rob, let me get this straight in terms of your call for yield, it sounds like you're saying yields will likely remain in a range which sounds actually pretty tight because you say 138 or so is a logical place for it to sort of rest up side to about 150 or so. that's a fairly tight range compared to the range we've seen for this entire year

are we going to be in that range? and is a range good enough for areas like financials to actually advance >> i think it is i think we've unwound all of that optimism and the 10-year, again, in roughly 50 to 62% retracement would be a band that i would expect rates to trade over the balance of at least through the end of the quarter, into the beginning of the fourth quarter. but i do think it is enough for regional banks, transports, cyclicals. when you look at them from the technical standpoint, they're getting oversold on a weekly basis. you wouldn't call it textbook, but it's got the right type of profile where the risk-reward looks through into year end and beginning of 2021. >> rob, thanks rpc wealth management. guy, yesterday we were talking about rates. yesterday i dared to ask you whether this was goldilocks or if we were entering a goldilocks

period which i know makes your skin crawl so i'll ask you that again. is rob right in that remaining in a range could actuallybe a good thing for the cyclicals >> sort of, what's that thing that you just said, goldilocks scenario, best of both worlds. >> right >> all of the things that make me cringe. >> higher but not too high low but not too low. >> it's not a great song by van halen. listen, i remain in the camp that rates are going significantly higher by the en of the year. i am in the minority, i get it if dan were here, he would throw the eyes at me, at me on twitter. i think we're headed back to at least 1.75 i think it would be great for banks. i'm not sure what it means ford broader -- for the broader market it's a buy it goes to 77.5. >> you're not buying when sluymer is saying. >> you're saying rates are going

significantly higher which is not what sluymer just said >> i think rates are going higher significantly i care a lot more about the move in banks bank of america is about to break out to all-time highs. we actually see coming out of those second quarter numbers, we know net interest margins are better for third we know dividends are up we know the credit quality is better than it's been in decades. i suggest to investors to put a screen up there of things like zoom and peloton and galactic and these things that to me are high multiple basically low yield stocks because they are acting the inverse of what's happening with some of the industrials and cyclicals. i think you have to be careful rob pointed that out i think some of those charts look very dangerous here. >> yeah. steve? >> so i think the 10-year is -- i've said this, is more -- i never thought that rates were going to explode higher.

i think that's due to positioning. so i think that it's not really indicative of what we'reseeing as far as inflation but i think you had a bunch of people that trade in these areas that got short treasuries and when the taper never happened, they were forced to cover and na has kept the yields on the 10-year quite a bit lower than they really realistically should be. to your original question of guy, this is a sweet spot. if we could get somewhere 1.5% on the 10-year, i think my trenso, my orn, wrk, i think they all work. and i also think growth works. so this is goldilocks, melissa, to your original premise >> on hump day and it's hump day. >> oh, my goodness gracious. >> three months away from turkey

day. >> debate between tim and i. i know you can do this van halen, david lee roth van halen. >> greater front men. >> no comments. >> i don't want to cause a riff. >> better front man. >> i have to go. >> please. >> this is not worth it. coming up, forget the crackdown on big tech. nadine says there's more reason to steer clear of china stocks she is breaking down how she'll play them. one of our traders says there might be more up side from here. we'll bring you all the details when "fast money" returns.

welcome back to "fast money. investors like cathie wood are keeping an open mind one data point prompted one of our traders to keep a dramatic movement nadine, what did you see >> well, we always look at credit data. what you saw is putting us for china overall for decelerating growth for gdp through the year with accelerating growth of inflation. so when we look at something like that, that's an inflationary setup and that's when chinese equities tend to do

the worst. and so you can separate out that from all the headlines and the regulatory issues that, you know, we've covered ad nauseam in the past month, but just on a pure macro basis this is a terrible setup so you can short individual stocks, you could short the whole market through an etf like the fxi or there are long positions that are short that one is the y. where is growth accelerating in gdp? we saw oecd data come out this morning in europe that said it's accelerating there we like a variety of countries in europe in addition to the positions we talked about on the show here. you'd be good to go to france. ireland has one of the best setups actually in the next several quarters of accelerating growth in gdp. it's a lot easier to invest in stocks when the wind's at your back versus when it's in your face. >> it's interesting because nadine is talking about just

even general macro dynamics as they relate around issues that historically have been tough for china. we know what the regulatory headwinds have been like in china. to me, there are places that i think are safer than others is that you have got valuations to me at a major discount relative to their history, not necessarily even to the rest of the world. what i hear nadine saying that i totally agree with is that you've got x china growth in other parts of both em and the other world that are interesting. if you look at pmis and isms, they're exciting the issue i have, i've been cautious on tencent and alibaba. they have a focus on their markets and how they want to be a global center. i care less about their super power chinese companies. i do think they could step in at any time and create a massive short squeeze that i would not

want to be on the other side of. >> those comments are made about las vegas sands at the top of the show might not hold up obviously there's a lot of concern there. in my opinion it's probably priced in. she makes some cogent points fxi, i think 33.5 or so is the lobach in 2020 it's trading 41.5 now. if she's right, there's a lot of time to the down side. you've had these moves to the up side but literally until that stock closes above 235, we've seen a series of since halloween boo by the way, lower lows and lower highs and that has not abated at all, mel. >> shorting china, grasso, a big part of that is shorting tencent and baba since they are some of the biggest companies there. would you be on board that >> yeah, i would be on board it, but the problem is this is so binary you're judged and the stock movement is on the last headline and i think it's become -- it used to be a trump thing to be antichina or to be

combative to china now it's become an equally bipartisan issue to be combative to china china does enough to be combative to itself. so it's very difficult to say i'd like to go long these names but once the tide turns, this is going to bebreak neck speed higher i'm not sure we're there yet so i would stay out of the trade quite frankly. >> coming up, all over the after hours shares on zonesonos. more earnings magic on deck for tomorrow disney gearing up. how are options traders gearing up for this? we have the details when "fast money" returns

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welcome back to "fast money. we've got an earnings alert to sonos. let's get to christina. >> the high end home audio brand posted a double beat on the latest earnings report in a record quarter and the market likes it like you said, shares are up 8%. the company posted a surprise beat with earnings per share on 12 cents with revenue of $379 million. 52% higher than last year.

on the earnings call which is going on now the company highlighted concerns for supply constraints creating backlogs that could offset revenue growth in the fourth quarter. they said they will look at product prices in the future this question was asked more than three times during the call sonos attributes growth to three factors. listening to more audio podcasts, audio books and other audio content. secondly, with more hollywood movies going straight to tvs, consumers are looking for theater like audience experiences. with so many people working from home, consumers are looking to improve the audio quality of their home offices on the conference call sonos did bring up the lawsuit with google sonos shared the blueprints to the speakers now sonos is suing google for five patents they'll have more to say when the judge issues his decision on

friday there you have it. back to you, melissa. >> christina, thank you. you've been long on this name. what do you make of the quarter? you must like it >> i do like it. patrick spence, the ceo, lined out those three tail winds christina just mentioned where she left off is the patent case that we're going to hear the ruling on friday or thereabouts and the consensus is that it's going to be in sonos's favor. so i would look for the stock to leg up even higher than it is now obviously. recent highs have been in the low 40s but when people look at the stock, we're looking for 60 to $80 is reasonable given all the tailwinds that the ceo has outlined now when you look at the amazon speaker, google speaker, this is a different product. this is a premium product that

people go for when they're trying to elevate their homes so this is not just the speaker that you're throwing around, this is something that's in your house and best in breed, best in class so i think the stock can move substantially higher even after this move that we're seeing on the back of earnings. >> if people are getting out of their house more and doing other things and maybe actually going to a theater or to a beach where they are not home and not using a sonos speaker as much, does that matter, guy, in your view or is this part of the home improvement trade and because housing is hot you still like this >> steve's been on this for quite a while. the quarter is outstanding the one number that sticks out to me is inventories are up 165 -- excuse me, 69% year over year that's a significant increase in inventories. the bulls will say that's great because they're going to meet the demand that's out there. if they don't, margins are going to get crushed i'm sort of with steve

it's got to close above 44 coming up, disney is on deck the house of mouse gearing up to deliver earnings tomorrow. "fast money" is back in two. miss a moment of "fast"? follow the "fast money" podcast.

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welcome back jim is talking to the ceo of norwegian. moving on, disney gearing up for earnings tomorrow. options traders are expecting interesting news with the results. let's get to tony zen with all of the details hey, tony. >> melissa, disney closed at $176 exactly nine months ago after reported earnings which is roughly where it closed today, so we've had nine months of almost no progress but one trader did bet that perhaps on tomorrow's earnings catalyst that's what it needs to propel itself back up around $200 or so when we look at the options market right now, it is implying a very muted earnings. only 3.3% is the implied move which if you put that into context is the lowest implied move we've seen in earnings over the past eight quarters by

fairly sizeable margin so the trade structure that we saw here was 305 contracts of the january 2020, 180/200 call spread purchased for $6.60 per contract this is not a particularly large trade. $200,000 of premium was paid here, but it is a very simple, lower risk strategy with limited risk that allows this investor to play for earnings targeting about $200 to the up side by the january expiration and risking only 3.7% of the stock's value if disney is below $180 at expiration, but it pays out two to one if disney is above 200 by the january expiration date. >> we started the show off talking about luv, southwest airlines saying they're seeing an increase in cancellations maybe investors are worried that we're going to start seeing that at places like disney. >> >> although strangely enough the stock as we've come in to

make this, this should have been a classic reopening trade. maybe more punish. the strength in the stock has been around the dtc business and streaming business the fast forwarding of their dtc business to 105 million subs, there will be 110 this quarter, 120 by the end of the year only helps this company so as perverse as it sounds, the company that was beat up significantly as things shut down i think might do okay on this >> nadine? >> our trading range is about 173 to 181 so as my kids say, it's kind of like meh. they don't know how to go up side, down side. 6% in implied volatility premiums there's a little bit of people putting on protection but not enough to get me too excited i like lvs i hate to say, guy, you're right on this one again, but that's another one i like i'll look for reopening trades. >> i almost feel like nadine needs an organ and guy is a match. >> has he called nadine before

the show >> did you pay her did you pay her something? >> i'm saying it for you. >> she happens to be brilliant good for nadine. >> tony, thank you tony zheng, tune in to the full show friday 5:30 p.m. eastern time up next, final trades. ♪ ♪ ♪ ♪ ♪

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time for the final trade steve grasso >> sonos, i'm looking for continued strength on the back of a great print that they've had. wish them the best of luck i think it can move much higher from here. >> nadine turman >> quanta. 70% of the revenues will benefit from the new infrastructure bill they're gatekeeper for construction labor we know prices for labor have been going up. >> tim seymour. >> wonder if guy adami told her to pick that >> bank of america this was quietly a show tonight about banks. we were talking about rising interest rates, talking about fundamentals i think where you have cyclicality in banks, you have a great bank drop on those charts. >> okay. i want the "fast money" fans to

know melissa lee said david lee roth's van halen was the only van halen. >> she knows. >> i didn't know there were different singers. >> i didn't know >> black stoen deutsche bank. >> thank you all for bearing with us and watching "fast money. see you back he moertorrow at 5. "mad money" with jim cramer starts right now 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, just trying to make you money. my job is not just to entertain but to educate call me at 8-800-743-cnbc or tweet me @jimcramer. if you listen to the