to get past this and move on. um, i-i look forward to speaking with rossie, um, today, actually, and my nieces. for ada pozo and katie phang, i'm mr. wonderful, saying good night.

down three >> it is setting up for something that can be quite good so the first thing here is a two-panel. so what we're looking at now is disney on the top and on the bottom line we're looking at relative performance to the peer group. hospitality, hotel, cruise, as a

sector disney has under performed for the better part of seven to ten months the thinking is that we're going to get a bounce. the stock closed today at 175. the bet is that we're going to get about 185 on the easternings beat >> disney is an interesting case we have a situation here where this company is obviously gone all in on streaming. and that worked out very well. there is a couple benefits to that, obviously a good business and they're executing really well the other nice benefit for a shareholder and investor is a higher multiple. we're approaching the second anniversary of disney plus's release. so i think all of that is a

positive one thing i would point out is that going into earnings you see elevated options premiums and the other thing i quickly point out, too, is that disney is not particularly cheap if go back a couple years they would typically trade arnound 2 times earnings but right now we're actually trading around 30 times peak earnings that was fiscal year 2018. so on that basis, it's not particularly cheap i think that the way to make the play here, if you're betting that we're going to see a positive result, is to buy longer dated calls when i looked at them earlier today, they were about nine dollars. because options premiums are elevated i think what you want to do is sell a nearer dated upside call against it you're looking at kind of a buy

right, i guess, with downside protection the november 190 calls i could collect about a dollar and a quarter for those. that will help off set some of the volatility that you see coming out of earnings and this is a way to get hedged upside exposure and off set some of that decay but mitigating some of the results. >> guy, your thoughts on disney and this prospect of a potential bounce >> well, given that it sold off from that 203 all-time high level, look, it is set up well for a bounce, absolutely but i will tell you to mike's point, it is trading at 35 times next year's numbers. that is the most expensive for any stock. not the at least of which is disney i could see it bouncing and i think cbw lays out a good case and there is a good risk reward

trade option i think you take your money and run. >> let's shift gears here and traders as well. guy is here and guy spies with his little eye palantir. what do you 1993 this one? >> is that a squid game thing? are you trying to get me whacked here i'm sensing that you're trying to do nasty things i like palantir because no one is talking about them. they are starting to leak out, in terms of the market and the street catching wind of that, it will be a whole new valuation. people will say at 26 times sales, thereabouts, it is very expensive and they're right. a lot of people are expecting bad things and there is a lot of negativity in the name, and i think they can surprise people to the upside. i think the earnings if i'm not mistaken on the 9th or so of

november >> how does it chart >> this is a pair of twos. they are matched off they can look at it on the screen we know the ipo stock opened at 10 on september, a year and a half ago and we hit a 45. that spike high on january 27th was one day before the spike high in gme. and it has been very unhappy ever since and we're working into the apex of this formation which is to say you now make your bet, long or short in this case i think it is literally wait for the news and go with it as it breaks out or breaks down from the formation >> mike, we go to you to figure out a trade given carter's view. a pair of twos is not particularly good as i understand it according to google

>> how you play your hand depends on more than just the cards you happen to be holding when we use options we limit some of the downside rick. we talked about the premiums being slightly elevated. to put things in perspective you have the money calls that expire in january, alone they're nearly 10% of the stock price a $26 stock at the money option that expires in basically less than three months will cost you $2.60. however as you look at that wedge and you see the range, you can see why the options premiums would be as high as they are we're looking at 10-45 dollars there in a year's time i think we want to buy those january 26th calls, if you a

bullish views, and the out of the money december 31 calls you collect about 65 cents for those. you're paying for the january options and that is a way to help off set that decay. you could say spending $1.80 on the option's premium seems like quite a lot but when you see how much the stock can move you can recognize that the protectio may be worth it. >> viewer wills know that on "fast money. 10 or 11 months ago guy put palantir in his acronym for the year this is a shorter-term trade, which is great, but what's your longer term outlook. >> i think it is very interesting. very tied to the government, which i get, but once they have an offering for the mid-sized businesses, thank you for helping me with that, i think

they get into a new revenue stream and i think it is coming. i don't think people realize that the crypto, the tailwind there's that people are taking into consideration i get it, i know it is expensive. it has not traded well since the height of the memeness but i like them long term. >> coming up, it could be an unprecedented time to be shorting stocks. so we're going to look at the long view. check out optionsaction.cnbc.com trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarstor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform.

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♪ . welcome back to option's action when we talk about shorting a shock, we could be in one of the most difficult time periods ever >> this is a very interesting time we have seen a number of short squeezes i have seen them in the past that have been executed by institutional traders but the way that the retail crowd is doing it lately is pretty unprecedented in my experience, i have to say. we continue to see it in some of the stocks that caught a lot of attention about a year ago and the againing of this year. i'm talking about stocks like game stop and amc.

and earlier this week a really remarkable situation in avis an important point that i would make is that investing and speculating are decent ways to make money and investing, obviously, provides needed k capital on the short side. it is a way for participants to get involved where they don't appear to be properly valued typically you're making a short term bet on price movement that can incorporate a lot more risk i was talking about how the s&p was going to behalf it is a couin flip. but if you where do we think the

s&p will look like 20 years from now. i would say it is going to be higher, and the effect as the fact that we have equities and ot security prices. when you short stocks, you're taking unlimited risk. when you use options you can define that rick if you're looking at the stock, going into earnings, trading around 170 a shars you could have shorted 100 shears of stock. the stock closed close to 300 today. that would be a loss of nearly

130 per share for 13,000 on your 100 share bet. what if instead you had executed an options trade and bought at the money 170 puts and sold the 150s against it. you would have needed to have traded two of those. that is a per share price. president so is 1080 if you found two puts, you would have spent $14.80 or $1480 total an your medical aximum profit w been $2520 volatility has completely exploded there is other trades you could have done as well. you could have sold some upside

call spreads that would have been about $4.10. you would have made about 2,000 that you were targeting down the downside you can face risk if you're on fire, but you would have limited your losses. that also still would have lost some in that trade, too, but it demonstrates there is more than one way to speculate on a stock's direction using options. you can cap the amount of options you take but i mean not having some form of insurance on the upside that can present really uncomfortable risk that that is not a trade i typically recommend. >> what are your thoughts about whether or not technical

analysis can apply well to instances such as these. >> this is one in a million, and i have the uncomfortable position that car was a little too steep. the irony is that hertz did this, too. they're highly indebted businesses they're revenues were eight billion. but ten years ago they had $10 billion in debt. it was indicated not up at all after earnings and one little conversation about electric cars and it took a life of it's own and the irony of this, there are people that made great fortunes and people on the day, on the day in question, borrowed it at

500 thinks they would make it and they lost 50% of their money, all happening it is so fascinating, in just moments. the word untradeable comes to mind >> i'm curious what you think, i'm stlur is a little del on your shoulder saying there is something fundamental. there is a society that says i'm not going to get in the way of this because these are trading on something other than logic, reason, orring in else >> so, you know, people say that short sellers are un-american somehow. they are possible to find shorts

plays, vital, i would say, to the market just bear with me for a second just out west in utah, close by is yellow sstone. w wolves were taken out. the moose and the elk population grew it is out of whack serg back in unison. the eco system is working. you take short sellers out of the market and the ecosystem ra rarely works if you think that taking that out of play is a good thing you're mistaken. that is exacerbating the crazy

dynamics in the market >> i might be wrong, but there are no speed bumps any more, right. there is nothing to cull the herd, as it were it is a fascinating kerks, for you nat-geo fans, go look at some of the work done. >> it is the way up, options define your risk, so that would be the better way to do this, and let's give them credit, a lot have used options for the meme stocks. >> i think there is a reflex sieve element going on ear if they buy the stock or the options, it will have a similar pressure on the sale price when they go buy calls, if a

crowd of people started buying the stock, or buying call options, it's going to propel the stock higher but for those that may not be able to hedge in other means, they're defining their risk and that is a positive thing to it when you have this hugely relevant en if the stock is substantially lower. the puts have gone up in value and that is because the options were and some of that came back

in, right? they are trying to size the trades appropriately as being key. i'm not going to judge if people should use this as an input. if you're making money doing it you're doing something right >> on the topic of meme stocks don't forget to check out my new documentary. up next, answering your questions on old and new tech. we'll be right back.

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after today's downfall the other 40%. >> this is a brutal response to earnings one thing that came out in the news options premiums came out. usually you want to wait three days if you're trying to play for a bounce but options is the only way i would play for a bounce in this one giveen the moe that we have seen when traders tell us how to make thinkorswim even better, we listen. he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them.

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♪♪ ♪♪ ♪♪ final call time, carter? >> gold and gold miners will have a big week next week. mike >> i use call diagonals and disney going into easterrnings

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