significant call toward tapering, the recent move to the down side, 124 on the ten year. >> powell has been worried about the delta variant. he didn't expect it to have any impact on the economic growth but maybe data will sound other wise we'll see if that changes. >> that will do it for us here on "closing bell." "fast money" begins right now. we'll see you tomorrow. >> live in new york city times square, this is "fast money. i'm melissa lee. tonight's trader lineup. tonight on "fast," the chart master said beware, carter worth and why he said do not buy this crude collapse andtracking the after hours actions. applied materials is on the the move the call is now underway we'll bring you the trade off and the report and later the auto stocks hitting bumps in the road today. we'll break down what sent shares of ford and gm into

reverse. but first pop the popcorn, because we are starting with a wall street thriller throwback one of the traders say i know what you did last summer they're worried we could be in store for a replay of last year's blockbuster by a shocking september sell-off so no surprise, it is dan who draws the comparison. >> he could have done that too. >> what did you see? >> so last summer it was a rip roaring rally and we all were kind of scratching our heads trying to figure out what was going on here and the level of complacency was high in september the calendar turned and we have stocks going down in what felt like a straight line i think at the low's s&p and nasdaq were down 10% some names were down 2 x that of what indices were. since we have the sell-off in mid-july and i think the s&p 500 was down about 4% peak to trough at that time and we made new

highs, it seems like off to the races right now. but when you think about the concerns when we have bouts of volatility and it is not just in stocks, rates have been weak we've seen commoditities come in hard i know cart ser going to talk about crude. it looks like the investment ground is moving below your feet here but not in the major indices. so when you think about delta and china and the volatility over the last year, i think there is a potential that september, the higher we go right now into the end of august, the lower we go in september. i'm not telling you we're crashing but i think we're set up for a sharp decline in the s&p 500 and the nasdaq in the next coming weeks. >> and if you go back on charts to last summer-ish and last fall, we tested those lows a couple of times and in sequence. so guy, you had brought up china the other night. how could china be weak in terms of the data we've seen. >> kudos to nadine all of the summer talk got me

thinking about the tennessee williams play. you might recall suddenly last summer and the movie of the same name with elizabeth turner. i went to see it and the motel song in, suddenly last summer. are you with me so far nobody cares so wednesday night so nadine has been spot on in terms of china i'm shocked with all things going on, i know you want to talk about the fed taper, that is a headline. but all of the noews in afghanistan, i think it has far reaching for the market but i'm shocked on a day where we should be down but a change is slightly higher it is fascinating how imperus it is to everything. >> and afghanistan could be a wedge through u.s. and china in its relationship. >> as the cool kids say, hondo pee, absolutely. and i don't think the market is

taking that into consideration headline risk gets worse before it gets better. >> xi jinping made a speech, but the gist income inequality and the wealth gap is a problem. and so if you think that the chinese government is -- has all of the issues and regulations rolling out and the potentially the impact from delta, et cetera, you're short but should that have an impact on us here should we be worried about that. >> typically what i like look at is when is the money today and where are we today and while we're short we've been trimming the short because i look at the fx side today for china and now a potential upside for our trading range of 6.6% versus a down side of 1.2 and it has discount of 13%. so what does that mean a a lot of people are short. they're not scared and paying --

they were paying up for protection before but now it is kind of getting washed out so one of the things that i'm look at here is how much further could it go. so it might have been a premium but it is a discount and heading toward zero. i'm going to take off some of the shorts because every night we're seeing it get battered in the news but i compare that to the qqq, i'm looking at 80% implied volatility premium and i have a 1% upside versus the down side so i like those odds better when people are worried on that one i think i could get the nasdaq to rally in that because people are protected versus the other one where maybe it is getting washed out a little bit. >> do you think we're setting up for a scary summer sequel as dan is predicting. >> everything dan said sounds right except for the fact that i think i see at least what i'm

looking at right now is this rotation and because of the fact that it is been a very healthy rotation, i think that is a exactly why we find ourselves where we are. it seems like everybody was on the energy bandiwagon and now they're back on. but it is this whole process that we see. i think that is healthy for the markets. the key is just keeping a close eye on what tom lee is going to talk about, volatility when you look at volatility in the market, we've been trading in the teens it seems like forever. every once in a while we spiked over 20. it lasts a day or two. it doesn't seem to last at all right now we have about a day of which we've spent above 20 on the volatility index but that could last a short time frame. i still look very constructively at the markets in terms of where we are and where we're going and what see the delta variant is a situation that is something that we all are watching extremely close what is going on with china and

all of the different types of things that they're trying to regulate and change. so there are a lot of different areas of the market that could cause it i think to have a 4, 5, 6% pullback. but i don't see anything showing me right now that we're in for an absolutely obliterating shot to the down side so for now i remain bullish. >> and agree with what pete just said rotations have been healthy and we've seen major corrections and that is the s&p 500 has been able to hold the gains we'll talk about amazon later. they just dropped 15% in a straight line from an all-time high and that is the point about last september no one thought that could happen that is a reason where investors who were in love with this stock and this story have sold it down my point is it could happen to the other ones and, listen, at the end of the day i think that if you thought by now we were going to have this pandemic in

the rearview mirror and all of that monety and fiscal stimulus that did the reverse from the throes of the pandemic crash, it was going to be inflicting at this point that is not happening. that is been pushed out. the uncertainty about that is the very thing why i think it is very healthy to have a five to 10% correction over the next few weeks or so and then you start playing for that year end rally to close out and then move higher because the global economy at that point should be in a much better place to all work in sync. >> so the thinking is that the most loved stocks at this point deserve the hardest sell-off which is usually the thinking in general with most sell-offs. but at this point in time, guy, which stocks are poised for that sell-off, the next amazon if you will >> under that premise, if you want to go there, i happen to like google. but google falls under that category without question. that is a beloved stock. apple continues to make new all-time highs and that would fall under the category as well.

except that i don't think that is going to happen for those names. it should have happened in my opinion given what is going on with amazon. but amazon has its own story but i don't see it happen. the rotation is spot on and it is fascinating that energy as pete said was everybody loved it that is gotten crushed at the market and look at the resource trades today that we've talked about. free mort port mcnamara, they got obliterating the broadcaster market doesn't care it is amazing how the s&p does. >> pete, where are you on energy now? >> yeah, i still like energy, mel. but it felt like there was so many people that jumped on the band wagon it was once we got the price of crude over about 70 that everybody seemed to get so excited and everybody wanted to be in and thought it was great back in november it was $37. it made a run from 37 up toward 77 i think was the highest i saw

in the premarket one day or overnight. but just an unbelievable push. now i think on this pullback it really does hinge upon what we see going on with the variant because obviously that does effect what is going to happen with the economy how much driving, what is the demand for oil and gasoline and so forth so i think there is a lot of ifs out there right now for the energy space i am an old right now in chevron and kmi, are my only two exposures as far as stock. i do have a lot of options exposure because the beta names within that energy space really do unbelievably activity, the beta itself kicks in and suddenly the moves from the upside are unbelievable and to the down side are also exactly the same they're going to be unbelievable as well. we've seen a big sharp sell-off. i think the some point we get enough of the bulls turn into bears that we could burn back to the upside. >> so pete mentioned the variant, nadine. the variant or powell, which is the bigger impact on the the

markets here >> well, it probably depends where you sit. so i think in the united states, powell seems to be driving the show obviously the long end of the curve coming down so things are flattening because the short end of the curve going up and that is what we've been playingch and it effects things like tech and bond like securities, it effects the cyclicals but then you look abroad an then the variant matters more are importants being shut down and are cities being shut down and what is happening with the confidence of consumer in small businesses so i think it bifurcated your answer depending on where you sit. >> it may be volatility but our next guest isn't ruling out a massive rally in a week. tom lee is a cnbc contributor. good to see you. what do you make of -- i know you've been listen into our conversation what do you make of dan's forecast or thought that we could be setting up for a similar sell-off that we saw last year?

>> i mean, i understand the rationale. i think if we look at sectors leading this year, the sell-off dan is talking about has already taken place and i think in terms of how investors are reacting to the incoming data, last year it was concerns about back to school and the rising cases and cases were surging, plus we had the whole election issue going into the fall. i think that the market is dealing with a lot of bad news today. and the question that investors have to grapple with is how much of what we're seeing with delta variant is looking in the rearview mirror, because delta could be peaking soon, or a lot of the setbacks and uncertainties created, how much is transitory versus permanent a lot of our clients today were talking about canceled trips an seeing the high frequenty data showing the weakening but that could change as soon as we get some comfort on delta, improving

the benefits of boosters so i'm in the camp that i think a lot of bad news is baked in but i think in the next week we're going to see more bad news but markets start to not react to that bad news and i think that is what makes a bottom and then a big rally. >> hey, tom. so a big rally from here you have the s&p up 17% or so. when i think back over the last five or six years, some of the most volatile periods in equities have had to do with chinese growth and when you look at some of the data in the last few weeks you could say it is delta or might say that they came out of their recession quicker than we did. maybe there is a scenario where growth doesn't materialize globally the way that a lot of people had expected here and therefore maybe equity valuations seem a little rich. and my point is i'm not trying to scare anybody out of positions. but if you believe that we're finally getting the reopening trade, wouldn't you like to see a little fear in the market

rather than just this complacent that we've had over the last few months. >> i agree with you. fear is always good. but if you look at the vix term structure, it is showing quite a lot of fear. it is nottin v -- it is not invn so it is not like a high volume event in the near term i think your referring to the list of china, but there is still so much pent up demand we know households are liquid. there is revenge corporate capex and buybacks are strong and companies have cut their cost structure. so they're not going to necessarily trip over their skis if there is a short-term bump because mobility is weakening. i don't think we're at that point where capital is misallocated i know investors are scared. i mean, i don't blame them today, this morning was a tough session to watch but to me that doesn't change

that markets could be really capable in the big rally. >> you heard melissa ask nadine whether it was the fed or variant made the most. i happen to think the fed still trumps everything else i'm curious as your thoughts as if they could say something in the coming weeks to derail this or have they figured out how to speak to the market? >> well, i would agree, the fed could have a huge impact either way, positive or negative and they're data dependent when they have the soft data they look at consumer confidence weakening, i it is hard to be decisive so i'm in the camp that is what is happening now is actually less likely to lead to a fed negative surprise. >> all right top picks still energy and select tech. good to see you. thank you so much. >> thanks for having me. tom lee of fund strat. pete najarian. tech or energy >> oh, now you're going to make me pick.

i will go with tech. i have a lot of exposure in technology i still think there is plenty of upside i like them both i was talking about the options i have in a lot of different energy names as well but if you're going to be put and i have make a pick of would i rather, i'm going to tech. >> i didn't even force that. >> no you stealthed it >> i snuck it in there i made pete walk down that path. but nadine, in terms of the interesting portfolio to think that you're all in on cyclicals an also like tech? >> well i agree with pete here i have to go with tech i think while it is own, there is protection right now. so those are the types of things if people unwind that protection that could move it higher. there is solid balance sheets in some of the big players. obviously a lot of strategic initiatives going on we heard from zuckerberg today, obviously it is more of a ten-year plan but there is

exciting developments. if you have a variant, versus the interest rates, it continues to keep the gdp acceleration at bay. you could see rates stay low and tech continue to grind higher. so i think the asymmetry is there in tech. >> coming up, do not hit an oil slick. the chart master is breaking down why the big pull back is a a no go. but first an earnings alert on applied materials. that stock it said oshts on the move we'll brings the details next. you're watching "fast money" here on cnbc back right after this. llions ofs struggle to get reliable transportation to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community.

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positioned companies to benefit from the chip shortage and growth in the equipment space over the next several years so why the lack of enthusiasm patrick say there are concerns around peaking of the semi cycle. but patrick said he does not believe that to be the case. on the the calling the ceo for near term market conditions, no significant changes to his outlook. the demand is strong and there is never a more exciting time for semi companies back to you. >> usually we don't make much of a stock being unchanged on the back of earnings, but in this case this could be very important that it is holding on to its gains, guy. >> and it is interesting and i happen to think this is a great quarter and dan is going to make fun ever me because i'm mention operating margins came in close to 33%. 26% a year ago so their improving on that metric they guided higher for the fourth quarter the one thing that concerns me if i may put my carter braxton

worth hat, you have a massive top at 146 so the stock has to get off the mat and get into the low 130s if it doesn't rally tomorrow it is headed to 114. >> what do you think of the notion that the semiconductor cycle is peaking >> yeah, it is interesting and think everybody has their own take on that, mel. but when you look at applied materials, it got up to the 146 level and hit that a couple of times and had a hard time breaking through and pull back but the stock has man an incredible run it is a lot like the other earnings through the earnings season where we've had incredible numbers and even the guidance has been there and yet the reaction from the stock itself is just kind of a blah. and so maybe a lot of this feels like it is priced in maybe it is an opportunity for the stock to kind of go sideways for a little while and gather itself it seems like that we've seen a lot of that over time but i think there are other names that are more exciting to me within the space. when you look at valuation, it is inexpensive guy is right

i think it trades maybe a 17 pe or something like that which given the markets that we have that is a very inexpensive stock that should have some upside >> yeah, i would just say if you're talking about cycles an peaks and troughs, we've had some bad data. t taiwan semi and intel is not doing particularly well. so i'm just saying, look at it there whatever lense you want to look at. it is down nearly 30% from the ohios and that is very tied to the cyclicality of the business and the pricele their product. so to me i think the jury is still out and the smh and the etf and the semiconductor group had a break out and that was amd and nvidia but it fail and now sitting on trend line in place since last fall. so i think there is some interesting spots here in the space. we're just getting started here

on "fast money." here is what is coming up next >> oil is dealing with the loss of energy. and the chart master said this dip ain't worth buying he's pumping into the charts next plus, tesla holding an artificial intelligence event. so what does elon have to say about tesla's future with ai we've got that and a lot more wh "ston" tus.enfa meyrern fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq that building you're trying to sell, does this come in blue? - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty.

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you can finish. - [announcer] finish your degree at snhu.edu. welcome back to "fast money. it is a hot and cruel summer for the energy sector. etf down 12% since june and the chart master said there could be more pain ahead for this trade >> every single time that the relative line has rallied to

that down trend line, it is failed to the penny. if one wasn't literally perfect in their timing, it is been nothing but a headache >> since then the xle has continued its drop falling 7%. so the chart master said do not be tempted to buy this pull back carter worth is here to chart it out. what do you see? >> well, i'm always tempted. that is the thing. and that is what makes a market so fascinating and interesting let's look at a few crude wti charts first and then go on to energy so the first chart you see on the screen, that is the one year chart of wti with a trend line drawn. and we have a break in trend we're down almost 20% here and so the question is is there any real insight at this particular moment the truth is no, take a look at next chart and look at the annotations that i have there. so we know you have a low down in october at $34 a barrel and

we have a peak just three months ago at $77 and we've given back, yes, $14 a barrel to where we are now at $63. well it is not random that $14 decline is exactly a 33% of the proceeding advance of $43. so the question is having given back a third of the preceding advance, is oil where it belongs. i i think it is. i think the delta might be causing this as discussed just moments ago. but the is it is really about energy stocks and let's talk about that because i just think that it is the trap that keeps on trapping. so first just to put the whole sector in perspective, we know that it is only 2.7% of the entire s&p 23 stocks and a total market cap of 900 million now look at this chart this is the energy sector versus the s&p going back as far as data is available for the

current gix sector data in 1989. at this point, the s&p is beating the energy sector almost four fold. and so that is the tempting part looking at those two lines and thinking maybe we should play energy because it is so bad it is good. but the problem with that is, and let's look at the last two charts, is that one is had to be perfect in their timing. and you see that here. this is the over past three years. you've had two brief windows where it was sort of right to be long energy. the bottom panel is relative performance of the sector to the s&p and it is failed every single time at that down trend line final chart, i've tried to ano tate here the two instances, one was a three and a four month period where there wasn't anything at all in the energy sector over the past four years. so one -- it almost imputes to the practitioner a timing expertise that doesn't exist

it is too hard, not worth the headache and then there is this at only 2.7% of the s&p, maybe why bother >> thank you very much, carter before we trade the trap that keeps on trapping, we have breaking news on j&j let let's get to frank. >> down almost a percent after the chairman will step down at ceo effective january 3rd of next year and transition into the role of executive chairman his replacement will be joaquin dewatta who is the vice chair of the executive committee. again this change is happening effective january 3rd of 2022. the stock is up more than 170% since mr. goreski took over back in 2012. he issued a statement saying it is a honor and privilege to lead this company for a decade and i'm pleased to serve as executive chairman to see johnson & johnson progress improving the health of people an communities everywhere.

obviously alex goreski over saw the development of the covid-19 vaccine. up since he took over back in 2012 his replacement will take over january 3rd of 2022. the stock down just about a percent. back over to you. >> thank you should investors think differently about j&j with a new ceo? >> i think that you always get a little apprehensive because we're saying who is this person. he's coming from within. i think people could be more comfortable about that there is plenty of time. think goreski is giving plenty of time and going out to january. i think that gives us time to know more about the incoming ceo and what the direction it is going to be going forward but it is always nerve-wracking and in that i'm looking at a down less than 1% or 1%, that is nothing so i'm not overly concerned about it right now at least today >> let's get back to energy. and carter ended his spot with a

question at just 2.2% of the s&p 500, why bother. nadine, why bother >> well you bother caring because it has a higher beta right. so i think it was dan or pete said, i can't remember now, the higher highs could go fast and the lower lows could go fast so and if we're trading down 33%, we have to backtrack. it is been breaking down trend lines for us when we see that we have to pause and so while it does represent for us a 3.5 upside versus down side is that exciting enough? no it only has 13% implied volatility premium and so we'd like to see the numbers in our favor before we jump in. >> the answer to why bother also, mel, is because they're trading opportunities here a name like psx, which i think got to 94 and i never thought it would be 66 again. but this 66 level is where it

broke out from back in january the risk/reward sets up well and just one other thing how long have we been doing this show. >> a long time. >> in january it will be 15 years. coy say with almost absolute certainty that the word practitioner has never been used on this show until a few minutes ago by carter braxton worth. >> i feel like it has. i can't think of the circumstance but it is not so out of the range of normal. >> just telling you. >> is there a oil stock, dan, that would you bother with. >> not really right now. if you look at xle which is the etf made of exxon an chevron, i think 45%, it just broke down from the break out level from february it is below the 200 day moving average. if you used term before there was johnny come latelies who got on to the trade once crude had broken out from 70 i think it over shoots the down

side. >> next what investors would expect out of elon musk tonight. and amazon placing a big bet on brick and mortar back in a few. mill "fast money" is back after this.

welcome back to "fast money. shares of tesla driving lower as company gears up to hold an ai event later tonight. let's get to phil on what to expect >> melissa, i think this is going to be one of those event where's if you're really into artificial intelligence, and the really geeky stuff, you're going to love it if you're just an average investor and you think tesla is cool, you may come away a little bit disappointed we'll talk about why in a little bit. first of all, when we're talking about artificial intelligence in terms of what we might here from elon musk, the full self-driving update and how they're using ai to improve that capability and the do jo super computer capability and we'll likely get an update on that the su

supercomputer and the use of robotics and artificial intelligence to improve manufacturing. in terms of full self driving in the tesla auto pilot there is no doubt that artificial intelligence has helped tesla immensely and will in the future going forward. but remember, this is a camera-based system and while they are logged tens of millions of miles and that helped improve the full self driving software this is a system with limited auts on mus capability why am i bringing that up. i wan to show through chart going back to april 23rd of 2019 what happened on april 23, 2019, they hold autonomy day and you'llon musk said we will have one million roby taxis on street by 2020. there are none on the street there are no full self-driving tesla manufactured nor is that going to happen any time soon. all of this is to point out that often at these events we will hear promises or expectations

set by youhe'll on musk and peel say is that possible look at the last three tech days, the first three days afterwards hasn't been a big boom it hasn't been team saying got to get in on this. why? often elon is talking about many real technical stuff that while it is promising down the road and some of that technology has been developed over time, it is often when he said he's going to do something immediately, melissa, people will sit there and say, is that really possible are we really going to see this. so that is the thing to keep in mind we'll be watching the event tonight. think we'll hear some interesting things will we hear from grandiose promises that is a possibility as well. and this is also a recruiting event. he said all along, they need engineers. they want engineers. and this is the kind of event that makes people say, yeah, i want to work for you'll elon musk and tesla.

>> for those events that you highlighted, you may not know this but i asked because you might. has the stock run up into the events, because that is what happens oftentimes with an event that is very highly anticipated. >> a little bit. i do remember that heading into battery day, shares did move higher because everybody said they're going to come up with a new battery and have this great extended range on the vehicles because of the battery and tesla was and still is the battery leader in terms of cost and technology so a lot of people were anticipating and even bigger event. and they made some promises in terms of developing battery cells that have not come to fruition yet they may down the road and they're still working on that battery technology, buts that usually what we see from the events not a big effect afterwards. >> yep phil, thank you. >> you bet. >> this is in the context of the space not doing well as of late.

and also in the context. legacy automatkers not doing well gm is down 8.5%. >> it is been unbelievable because i thought it would continue to griend up to 72 and ford and gm have been epic in terms of trading tesla, you may recall two quarters ago it closed at 750 and trading down too 725. we played a game that night, first time ever, this time tomorrow remember that game >> that is right >> i know you say there is stuch glee in your eye the folks at home didn't see that but your such joy because you know what i'm going to say this time tomorrow the stock will be back at 750 and spent the next two weeks going down to 560. i bring that up because we just failed at that 725 level past support becomes resistance 640 is your level to get back into the stock in my opinion. >> it is a king's song and we didn't name it but we worked it

up. >> lousy band by the way. >> come on so tesla, i think we have a chart here it is sitting right on the up trend in place for fr about $70 in march 2020 at the throes of the that pandemic crash. it is a down trend and up about 22% from the may lows down about 26% from the all-time highs at 900. i would say this, the story, it feels like the fever has broken. i don't mean the stock story is broken or the fever about the stock has broken >> the hype. >> that is not a bad thing but i'm telling you it is sitting on a really steep up trend with massive gains. >> pete, what are you seeing in the options market surrounding tesla? >> it is pretty interesting, because we have seen some bullish activity and actually when everything else has been very short-term, of the trades that stood out was the very end of july we had a huge buyer of september 800 calls. that is what the stock trading virtually where it is right now. but it is a stock that i think

to fill in with what dan was just talking about, it is matured to the point now where i'm looking at implied volatility i used to come on the show and say look you have to use the options because the way and the volatility of the stock and the rest of that the volatility of those options has come down dramatically it is very close actually in measurements they're closer to 50, 55 implied volatility in a name like tesla. ant i look at gm, it is a 50 volatility and over at ford about 40 or 45 volatility. so it is amazing how it matured over time and with that the stock movement is not nearly what it once was so it is a different company than just less than a year ago it is much more mature and moves much more like what we see out of ford and gm. >> coming up, amazon making a bigger push into physical locations. we're priming up the details for you next. and plus a red carpet rally. netflix streaming higher and the move has options traders

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welcome back to "fast money. big news out of amazon today the giant is reportingly planning to open physical

department stores. amazon shares finishing in the red today. dan, you said this move could be transformational. >> i do. we have been talking about the transformation of the ceo role here we knew andrew just took over and he look at tim cook, these are tech ceo's who want to put their own imprint on the company. it sounds like it worked out really well. this is a logistics play and also a last mile play. to me it makes perfect sense i think amazon sets up down 15% or so, if it works down between 3,203,000 to the lower end of the range since last sent, i think you start dollar cost averaging. i think this is the sort of story when people get comfortable with the new ceo back to the levels where it was it possibly breaks out of the big range in the next year. >> yes, guy, you're looking at me. >> i'm not allowed to look at

you. >> you want to say something >> kohl's comes out. >> and i was going to does x about what the partnership. >> the operating margins were there. fantastic out of kohl's and they do have a relationship with the amazon wouldn't that make sense haven't you heard that before on cnbc "fast money" at 5:00 week days. >> you have. >> out of your mouth. >> you have. is there more of a convergence between amazon and walmart >> well you see them saying they need to have space and places that people could go i'm concerned about kohl's when i look at that, the print today was great, great out of macy's we played shop it or drop it on monday but one of the problems is people paid high prices because there wasn't much supply and there is back to school,

there is adults going back to work so i don't want them over paying when we're having a good moment when we could see a deceleration calling it after the fourth quarter. so while i do like amazon going after retail boxes, i what i don't like is paying up for an excision. >> you had a trade on macy's, pete, i hear >> yeah. macy's really did get tipped ofof when we look at the options markets. we had three buys in the laugh week and you look at a stock like this that could make the moves like it did today and the reason behind that is this is still a stock that has a high short interest so we talk about this all of the time, but that absolutely sometimes could cause stocks to move, i call it irrationally and that is what we saw today. an the last thing about amazon, it gives distribution and that is something that amazon is definitely reaching towards when you look at that target number, one of the things that -- all of

the numbers were great stocks run up into this number and it sold off now somewhat but i still look at that and i look at their distribution target talks about the efficiency coming out of their stores an that is a really big deal and because they do that, that causes them to be that much more efficient and better in terms of the margins and so forth so i think this is a move that they're going to start seeing more and more of amazon starting to move across the country for these types of stores. >> dan, are you worried that amazon might buy kohl's? >> no, that makes sense from nadine's perspective but i think it is about logistics, it is about last mile and returns and about a lot of things so they might be buying cheap real estate and do away with that brand for their audience when they know they're going head-to-head right now with walmart, that kind of owns more of that kift. >> coming up, netflix shares jump today what we spot that sent investors

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welcome back here is a sneak peek at cramer cam. jim is talking to the ceo of pfizer let's bring in mike khouw. what were you watching today >> so taking a look at netflix we saw that calls were trading at about four times the average daily volume and calls outpaced puts by two to one that would be put buyers an call sellers by about 30% most active options were all expiring tomorrow. most active of which were the august 550 calls we saw over 31,000 trading for just over $2. if we look out beyond tomorrow, next week's expiration 550 strike calls an we saw over 6,000 of those trade and unlike this week, averaging about three contracts, next week did include some buyers including one of

about 800 of those contracts that paid a little over $5 a contract for that. >> pete, you like netflix? >> i do. i like trading with the options and their more so than the stock. wee see a lot of activity in there. and it is always somewhere in the top ten for volume and there is a consistency to it that is very solid. >> what is not consistent is the stock gains. it has gone sideways and it has a bit of a trouble at the 560 level where it failed. the only gap above that was after the q4 earnings and then they gave it all back and the stock is unchanged on the year so not a lot of action there. >> you're a practitioner. >> twice now. >> setting a record. >> i don't know what it means otherwise i would use it in a sentence but think it is morgan stanley that said disney and netflix will go up i'm a reed hastings fan. but netflix is in this range

since july of last year, needs to get above the 560 left. >> nadine how are you feeling about netflix. >> reed is a friend but it trades between 506 and 544 so you're trading in a range right now so we to see consent and subscribers and internationally going up to move the stock higher. >> our thanks to mike khouw for mauer "options action" tune in tomorrow at 30asrn5: ete time. up next, final trades. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn

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- [announcer] finish your degree at snhu.edu. time for the final trade around the horn. pete. >> i love what i'm seeing and one of my favorites tjx, i like it and i own some calls. >> nadine? >> stick around for cramer because i'm picking pfizer, our friends at value act have built a bill big position because of the unvialed cloning unit. >> it is show friends and not show business. amazon maybe on the way to 3,000, that would be a level.

>> guy. >> nadine has friends all over the place. >> all over. >> it is fantastic i love it. tell reed we say hi. bristal meyers is braking out to the upside. >> thank you for watching "fast money. don't go anywhere. "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 is always a bull market somewhere and i promise to help you find it. >> hey, i'm cramer welcome to "mad money. welcome to cramerica want to make friends i'm just trying to make money. my job is to educate and teach you, so call me, or tweet me at jim cramer doesn't it feel like everybody is raising prices? that's one reason this market hasn't been in great shape