day. but it's still implying 1% plus daily moves. it has to be a process of coming back in, probably below 20 before too long if the market is going to calm down. >> we are out of time here on "closing bell. thanks so much for watching. ""fast money" starts right now. thank you. live from the nasdaq markets overlooking the glorious new york city time square, this is "fast money," the big show i'm in for melissa lee tonight our trader lineup you are seeing in the four pack there tonight on this show a baba blowout. seeing their best day in more than four years, a 10% move in the regular session. what's behind it and does it give the all clear for the rest of the chinese internet sector? plus, rev your engines, engine capital, that is

the activist making a push for a change at kohl's but others you should be watching more closely. classes in session and the professor is here to help you with those activist moves. fuelling up, we are heading down to houston where the biggest names in the energy game are convening for the energy congress, joined exclusively charif souki to get his thoughts on the market and where energy is heading from here we start with a major market rally. the dow soaring more than 600 points, rising nearly 2% it's best day since march. the s&p 500 and nasdaq also seeing monster gains so with moves like these, what do you look to do to gauge where the markets are going from here? guy, you sparked this conversation with your pick for one of the biggest market indicators out there in your mind, so what is it that you are

watching that gives you the sign of what's to come? >> great to have you, tom. this is just my opinion. i'm not suggesting i'm right, but i think the ark atf is something you have to have up on your screen. 2015 until recently has been incredible in a word but obviously over the last six months things have turned significantly. and if you look at the holdings, and we talk about them, but docusign, roku, draftkings, unity. and look at some of these names. i think all but two or three of the names right now are north of 20% in terms of sharp declines, which is fascinating i mention it because most of them are very high valuation growth names, and one has to wonder if this is the environment that's going to support those names. i don't particularly think it is i think it is just a matter of time in my opinion before the broader market catches up to what's going on with the rpto.

>> dan, it is a good point there are a lot of cases to be made right now that it's a big sentiment gauge because so much momentum has been part of this story for those rtfs with the art tech innovation in particular is there anything that you think would be that tell for you about where the market could be headed at least from a general up or down perspective >> yeah. guy makes a great point. no one is here to pick on kathy woods, ark etf that performed poorly as of late given what guy just said about her long-term track record and picking these themes from an investment stand point. i throw in spacs and tech ipos they trade horribly. crypto from highs over the last few weeks. but what i'm most keyed on is not in the stock market. it is the fact that the two-year u.s. treasury yield gained points in the last month while the ten-year treasury yield has

fallen 20 basis points in the last month i think on the shorter, david, i think it is saying that the fed has finally admitted something that the rest of the market was feeling about rates, about inflation, while the ten-year is saying that maybe all of you guys who got it right about inflation are wrong about growth next year or the next couple of years here so to me i think that's really important. i'm not talking really about the two ten spread i'm telling you what the two rallies, okay, what might be that thing to combat the inflation expectation versus growth on a longer term. and to me it ultimately be bad for the stock market. >> that flattening yield curve, the higher short-end rates and the lower long-end rates is what i have painted in the past as being the fence conundrum. the difficult was special position it finds itself in east of the rock and west of the hard place. so i wonder in your mind, is it

enough for you to say that this is a market that's due for an even more extended pullback than we've seen over the last week and a half or so >> well, i think that for me the answer is it's not just one market, right? there is two very different parts of the market. might be more than two, but the main ones being the high flier, big growth, giant multiples, they will make money in the future and the more sort of boring, value-oriented low pe not so exciting. to me that's where i want to be. so i think that market can do actually decently. i also find myself in the weird position of agreeing with every single word that dan said about what's happened and what this says for inflation and for what growth or no growth in the future so to me i like being in these high -- i'm sorry, low pe high cash earners that's where i want to be. so the market broadly, i don't

know but that's my position one thing i did today is i did cover some igb, which pains me to do so just because it has moved 17% from the peak, which is a very big move so the risk/reward has changed there. it is not that i'm gung ho high flyers i'm not. >> the van guard etf that tracks many of these types of moves there. the i-shares expanded, tech software, the igb, you can see that move on the right hand side decent again, maybe covering some shorts there isn't a bad idea given the nice profit run you have had as i turn to you to take a look at maybe the indicators that you, from your perspective, are seeing as the ones that we should all be keying on, is it more macrofocussed, or are you looking at the broad dramatic elements that guy and karen and dan have just listed out >> so i think -- so guy who was

being modest he said he wasn't sure if he was right. he's absolutely right. i will stick my hand up and say he's right there it speaks to the retail presence of the market. we had many discussions about whether it is retail or it's institutional. and the answer is yes. it's both. both have now proven to be formidable opponents and participants in this market and we should have a pulse on all of them so i think the arctics that box in terms of the retail presence. dan talked about the spread. that talks about our macroeconomic situation, and that's going to cue a lot of institutional investors. right? and karen kind of brought those two things together. i will try to round that conversation out with a chart that i'm looking at which is actually high yield -- high yield spreads. you can look at it in terms of the absolute spread to swaps or cds spreads which have actually blown out a bit and people have been purchasing those a bit more, but this high yield spread essentially is what is the institutional next best option

right? so you have the minimum trades that are all in the ark and the new wave, the new economy. you have karen's names that are low multiple but high growth or high free cash flow generating companies. you have the financials and some of the builders that key off that two-ten spread. then you have a lot of macroeconomic hedge funds that will say, okay, i'm going to invest in this relative to that. and the "that" is credit as you have seen that credit spread blow out, i think you have seen a rotation out of some of the more speculative pockets of the equities market because, as karen said, the risk/reward is simply better in that sector. >> can i follow up on that i'm looking at one particular move here in the i-shares i-box corporate bond etf it is a mouthful of tickers but it basically tracks the high yield credit market, the junk bond credit market it's been a massive selloff.

but we're seeing a couple days of at least positivity do you feel as though that chart that you just showed with those point spreads as high as they have been in months here that the market has sold off enough that this is your leading indicator that risk appetite can return in a more constructive way? >> i think it certainly can, but i don't -- i think the high tides raising all boats situation is kind of getting a little long in the tooth that's what i'm getting at you will see more relative value where it is vis-a-vis the other and these charts are pointing to that. >> all right so the macro side of things. let's move on to today's rally the latest in a big move in a week plus of volatility. and our next guest says not to let your guard down just yet let's bring in mandy to help us break it down. great to have you with us as always to take us through a

little bit of the sign posts that you are seeing. what exactly is the market telling you right now about what that next leg could be >> sure. hey, don it is great to be here what really stands out in the options market right now is not just that volatility is higher, which it is, but many of the other metrics are actually approaching the record high that we saw back last march during the depth of the pandemic selloff. for example, as you look at the cost of puts versus called, so a measure of demand for downside protection, that is nearing the record high that we saw last march, which is very surprising given that last march, vics was at 80. it's relatively much lower and obviously last march s&p had a much bigger selloff. in terms of what is driving that move, i would say three things obviously with the new variant omicron, you know, a lot of uncertainty regarding that but in addition, i would say the hawkish turn from the fed that really caught a lot of investors

off guard last week. and last but not least i do think seasonality has a part to do to play in this you know, we're coming to the end of the year, traditionally a time where liquidity is a bit challenging and where moves in the market can get more exaggerated. put all this together, this is why some of the risk metric and the option market are as high as they are. >> so, mandy, i wonder, though, because we try to juxtapose that to many of the statistics that we often cite and have for years about the seasonably strong aspect of equity markets, specifically between thanksgiving and the end of the year, not to mention that so-called santa claus rally that takes us into the first part of the next year. >> right. >> but you have to square that with the liquidity situations you were talking about what exactly then is the strategy given that you feel as though traditionally it is supposed to be good but that you can't let your guard down because the liquidity may not provide for that kind of support

going into this particular year end? >> so i would say liquidity works both ways, right in a thin liquidity market moves in either direction can become exaggerated. so liquidity becoming lower does not necessarily mean the market will sell off. it is certainly this year and going into the year end with the macro backdrop that we have. what we are seeing is more than usual, a pullback from investors. a lot of people, especially if they have done well this year, investors are cutting back on risk and really kind of trying to lock in year to date gain and start fresh next year. but in terms of the strategies that we like in this environment, i think, you know, looking at option strategies where your next selling volatility make a mad sent to us given how dislocated the metric i talked about it have become. so, for example, if you are cautious on the market looking at, you know, buying a put spread and selling a call to fund it, this type of structure

where your net short makes a lot of sense to us >> mandy, you mentioned some really good points i can agree with in terms of volatility and skew i think you spoke to the demand for downside risk. you hit on it in your last point. but in terms of what types of strategies would you suggest investors take, you mentioned like some caller type of situations what do you think about one by two put spreads as a way to sell that skew and get ourself in that short vol >> absolutely. so we like it. if you are looking for protection on the &p, take advantage of the expensiveness of sku and protection that i mentioned. but as a more direct short volatility play we like buying one by two spread on the vics. it is a way to position in volatility in the vics while also taking advantage of expensiveness of vics options right now. >> one thing you can make a point on there that the downside

volatility led to elevated options prices for that put production mandy, thank you very much have a nice evening. >> thank you. all right. let's trade this, folks. i mean, okay, karen, i will start with you some great points. the elevated volatility means that there is relative value or the implied volatility of some of those put options have given you a chance to maybe be able to capture a little bit of relative expensiveness by selling them. is that the way you would approach this coming year even though we always talk about this idea that things are pretty good between november to december >> yeah. i mean, if you want to lock in gains, that -- that sort of makes sense to me. the put spread one with selling out of the money called to fund the put spread makes more sense. just the idea of a one by two put spread i did a one by two trade earliy my year i hope it is the worst trade of my career. it is until now.

i just don't love that potential for tremendous risk. the put spread, we could call it that's easier. if the market rallies hard, okay, that's -- i don't know that i feel more comfortable with but i guess my portfolio i don't think of it how is it going to do for year end because i'm hanging on to all of it into next year. i got a further horizon than that. >> all right so we're at least constructive from karen's point of view. coming up, we are breaking down the latest in the energy space with the chairman of tellurian. that's coming up but first we are hitting two names going in different directions today alibaba and lucid. we'll tell you way when "fast money" returns after this commercial break oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot.

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comcast business. powering possibilities. welcome back to "fast money. shares of alibaba topping the tape after announcing it is restructuring its e-commerce businesses and tapping a new chief financial officer. the stock at the end of the day 10% higher, best day since june of 2017. the shares are still down, get

this, 50% so far this year it's been rough for chinese internet companies overall so if you take a look at this particular trade for baba, it's -- i mean, we put it in context for people on purpose because of 10% move is massive, yes, it is, but it still lost half its value over the course of the last 11 months or so. i guess my question may be to you, guy, is do you feel as though there is a point at which chinese internet stocks like alibaba can become value plays and not the proverbial market falling knife? >> yeah. it's something we struggle with now since basically halloween if you go back and look when i say halloween, i mean halloween of last year when this was trading $317 or so a lot of people tried to make that call. i think it is a trading opportunity, and i'll point out to friday's low. i think it traded down to $108.70, reversed a little, traded 70 million shares, two and a half, three times normal volume

all those are the ear marks of a bottom and a potential bounce. by the way, you have seen incredible bounces in this name for the last 13 months, each of which has been opportunities to sell i think we're on the verge of one again. i think this stock could easily trade to the mid-130s and we'll still be in a 13-month down trend. i would like for a move to 135 when you sell it again this is a trade, not an investment. >> dan, i wonder if that's the way you feel about this. is it all all a stock pickers market or do we have to play this whole chinese communist party big tech regime we're in it doesn't matter what it is, if it's jd or anybody else, these are all kind of sell on rally types of situations. >> no. i think you bring up a great point. when you look at the headlines and why it rallied, i didn't think the business model was the problem here, don. so it is speaking to the fact that the chinese communist party was really trying to take a bite

out of their tech champions. they have done that. in its lows last week, alibaba was down 60% this was a trillion dollar market cap company to me, do they delist? do they go to hong kong? what happens here? it seems to be a very uncertain situation. i have to assume there is plenty of value here and that the chinese consumer that has actually been the tailwind for many of these trends, why they have such great futures in that company going forward, right, because they don't have competition from the likes of our version of alibaba or ten cent, that sort of thing to me, yeah, there has to be value here it is really hard, though, because you have could have said that at any point over the last six months or so and you would be dead wrong. >> meanwhile, guys, we have a buzz kill happening on lucid right now. they are getting subpoenaed by the sec for documents related to

its spac deal. the shares plunged by as much as 20%. closed the day down more than 5% dan, you flagged this story here i only bring it up because you mention competition. lucid is in a very growingly hyper competitive industry, a lot of names getting a lot more attention in electric vehicles just how much does this news really change the investment thesis for lucid >> that's a great question you come and have all these great questions. >> inquiring minds want to know, dan. >> yeah. but we were talking about a few weeks ago when that company went public and lucid just shipped their first car and we were saying there is no way to back into any near term valuation that makes sense this has nothing to do with the fundamentals this has to do with the structure and the way this company came public. to me, it shouldn't have much to do with it i will tell you on saturday i went to the share room in the

west village in new york city and i looked at this lucid air, man, this thing is hot, but it is at a really high end price point. they have a great car there. it has 500-mile range and it's a high end luxury car. again, has nothing to do with how the company came public via spac and none of us will know that either. >> are you exciting about evs? if so, where is it is it the 800 pound gorilla? is it tesla still? morgan stanley said it provides the real competitive edge against tesla that some investors may be looking for >> you know, i think in terms of tft sector, i think there is enough room for plenty i think tesla has the branding and although it is a battery company and we've got the boring company and this multifaceted company that's really leading innovation, at the end of the

day, it still is a consumer brand, and i think until that is kind of -- kind of shake the tree on that and we're able to displace them in something else, i still do think they are at the forefront. if you add in the fact and we have talked about all these other names that sold off aggressively, tesla has taken off funds as of late when you are talking about risk/reward, this is tried and true we are having a hard time backing these companies. we have a lot more data now around tesla that would still be the first in my list of investments in that space. >> all right tesla up top there we are just getting going here on "fast money." here's what's coming up next on the show >> high energy oil prices jumping after a rough month. so what's next for the commodity? we're live from the world petroleum congress next. plus, separate or sell kohl's climbing higher as an activist investor pushes for a boost. so professor karen is laying down a trade school on the

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welcome back to "fast money. shares of the special purpose acquisition company taking donald trump's media company public are soaring in the after hours trading, up 6% let's get out with the details on what exactly is behind the move kayla? >> don, it turns out that president trump's media company is going to be getting a new and formerly high-profile ceo in devin nunes, a republican lawmaker who announced he would be retiring from congress at the end of this month because of an opportunity he could not turn

down we learned that opportunity is as chief executive of former president trump's new media company. that company was expected to go public with that ticker that you just noted, the spac but we have learned at cnbc that spac is being investigated by the sec. more on that as we have it, but in a statement after hours, former president trump says of n n nunes he is a fighter and a leader we must stop the liberal media and big tech from stopping the freedoms that make america great. devin nunes to join president trump's media company as ceo when he retires from congress. we will see what's next for that company. don, back to you. >> it is certainly driving interest in that company the ticker was off at times in the last few months here. it is one of the top 50 on cnbc.com given some of the interest on what's next for that trump spac and everything else happening. thank you for that

i wonder, karen, i will turn to you quickly for this one because this is a company, like i said, that gets a good amount of asp atte attention. it's already up 3% before kayla's report what is your take on digital world given this nunes news? >> well, if you look, they did a billion dollar pipe and they put out some -- i don't know if they call it projections. it is more like total addressable market and they make some assumptions that are -- i don't know i mean, at the moment there is not a lot -- there is not a lot of there there not that there couldn't be, but it is just interesting that they're getting a huge valuation on so far not a lot. i don't know if they're going to get it together before they actually close the merger. i'm not really sure. this is one of the crazier ones i have ever seen and the warrants to me seem oddly priced relative to the stock by a lot i understand that, you know, you can't buy long and short the

stock. it's not a true hedge. but it's crazy. >> i think there is some dislocations, no doubt, between the underlying and some of the derivatives that go along with it i would turn to you, dan and nathan right now what do you think? is this something you are keeping a close eye on is there anything bigger in terms of ripple reeffects? >> it is very on brand for a trump organization to have one of the worst public per servants join as ceo of this company. i don't think this deal is ever going to happen to be very frank because one of the way that spacs work is you can't identify the target you want to go after beforehand it seems clear they did. the other thing that's important is we don't know where the investors came from. so the disclosure -- putin could be buying this thing

i mean, this deal is never going to happen, my opinion, all right. clock a ticket right now, people grifters are going to grift, and that's what's going on here. >> all right the market is always made up of buyers and sellers and we'll keep a close eye on that devin nunes becoming the ceo of trump media and technology group. switching gears to oil prices heating up while natural gas prices sent shivers through the market coal is down 10% the biggest players are gathering in houston right now to discuss the future of the oil and gas industry of course, if there is an oil and gas story, brian sullivan is all over it. he's there joined by the co-founder and executive chairman brian, over to you >> dom, i bet if you did one of your famous ticker searches, tel would have been been out here at some point this year because the stock is up 158% this year it is great to see you thanks for joining us here and

back in person it's great before i get into macroissues, natural gas was 5.5, almost $6 now it is $3.5 what's happened? >> it is very simple in this country, we have a reserve of 100 years all we have to do is drift when the price signal tells you to drill, everybody starts drilling and very quickly you re-establish the balances. to 18 months ago we had gas prices of $1.70. no signal to drill as soon as they went to $5, everybody is drilling, and here we are. >> what leads? we always say oil and natural gas. does natural gas lead oil in any way? what is the relationship >> so generally speaking, natural gas historically has been the bad news. i have a discovery that's a good news i have gas that's bad news when for the first time i think historically on a global basis,

gas prices are 2.5 times the level of oil prices. so the prices that you're getting for gas in china, india and even in europe now are the equivalent of $200 a barrel, and oil is trading at $75 a barrel i don't think that has ever happened before. so today because gas has some attributes that are attractive, it is leading the charge, which you would expect now because at the margin, they are going to changeover is gas prices will weaken and people will replace it with oil. so i expect gas prices are ready to go down a little bit and oil prices to come down a little bit. >> it is amazing it's 2021, and we're talking about power plants in china and elsewhere going back to oil or even coal. we're swapping coal for oil. what year is this? >> they have done as much coal as they can. coal is almost as expensive as gas is today on a global basis

if you look at what happened in new delhi last week where they had to shut down schools and -- >> no power. >> because of the pollution. the pollution was so bad they told government officials stay at home, kids, stay at home. we're shutting down everything for a week so if you look at pictures of new delhi today, it is apparent. >> we were in the u.k. talking about the potential for england's energy crisis swing. i hope we are wrong. it is not looking like we will be europe right now buying natural gas on the stack market at, what, 22, 25 >> close to 30. >> close to 30 how did europe get here? and where does this go >> so they got like everybody else, they got complacent. we had low prices for a long time everybody thought, remember, 18 months ago we're talking about low for longer nothing could have been further from the truth so everybody got lulled by that. and we're facing a world today

where seven billion people in emerging countries soon to become nine billion people will have refused not to emerge and for them to become to the same level of standards of living as the west, europe and north america, we need -- just 50% of the level, we need to add 50% to the energy supply in the world. it is a very, very hard task >> well, i'm going to wrap it up with this because it is "fast money. so your stock has been, i mean, hot. you probably won't comment directly on it but l and g, i assume will be a big part of that growth. your valuation is, you know, has gone up with the price is there still a reason for investors to be bullish and optimistic on tellurian? >> it is not even the first inning because you can buy gas in the united states for 3.5 liquefied for the dollar and sell it for $25 on the water

the plan pays for itself in less than two years at the moment. >> it oo the warmup. pleasure to see you here thank you. >> thank you. >> the world could pretty much gobble up all the american gas that they can get and probably could use a little more, to be honest. >> there is still an immense appetite for these particular products thank you so much. let's trade it i'll go to you, guy, first we talked a lot about oil and gas companies and capital discipline, right? not spending, preserving dividends, wanting to do buy backs, that sort of thing. is oil and gas still a story where you can go up and drill and get more product out or is it much more about that capital discipline these days? >> well, tellurian would suggest that is the story. this is your opportunity so in this instance, i think it

is plus, by the way, with this stock specifically, it is a pretty big decarbonization play as well which will fit into the esg theme funds out there. so this works. i think it is a really interesting company we talked about a number of times. i know jim cramer has as well. in terms of oil being a story, companies are much better run now than they were a few years ago. much more disciplined with how they're spending their money, which is a good thing. although oil has been really difficult over the last month and a half and kudos to dan who called that move if you look at oih, traded down to those prior april lows, down to the august lows and we have seemingly bounced. it is interesting here, specifically haliburtan. >> the words i have heard more have been commodity and super cycpscycle in the same sentence

do you believe we're there is this the early stage of what could be a big runup in fossil fuel prices overall like we saw back in '11, '12, '13, '14 >> i guess it depends -- that's a great question, but i guess it depends on what you think the economy will do. there is a lot of moving parts what opec is going to do are we going to allow more production are these countries going to lose the discipline they had if so, you can see us getting more supply and as commodities move, they're very, you know, price sensitive to supply/demand dynamic. but i don't have a lot of exposure to the space. for me it's entirely in the oih. i do think that we will continue to see for a little while anyway oil hang in there and, so, the oih has a lot of catching up to do relative to the commodity so that's how i played it, but it is not a big position for me. >> dan, do you feel as though this oil and gas story has legs?

>> no, i don't it goes back to what we talked about at the beginning of the show if you really fear we have this situation where growth is slowing, we see the dollar rallies, rates go higher, the last time we saw that was when the fed was coming off this zero interest rate policy and tapering before that and crude oil got cut in half. so the dixie at 96.5 is getting back on its horse a little bit the two-year rate is rallying. i'm not sure how far the tenure is going i just don't see tremendous growth prospects in 2022 that should bring crude up to that $100 level that a lot of people are calling for at $80 to me i see more of a $55 to $75 sort of range. >> all right that does it for that oil and gas trade. coming up, sell or separate? the advice one activist firm has for kohl's the details coming up. plus, you traded, we

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welcome back to "fast money. kohl's cashing in big time on news that an activist investor is looking to shake up the company. the latest on what that shake-up could entail >> this is a new activist investor in kohl's for those who feel like they have seen the name before, the name is engine capital that's different than engine number one engine capitals has about $400 million under management shares were up about 5.4% today on the revelation that engine is pushing the ceo to consider strategy alternatives including separating the e-commerce business as sack's is doing and macy's is considering. they would like the entirety of

kohl's to be sold to private eq equity they reached an agreement with four other activist investors in a roll adding two of their nominees to the board. that group, which owned shy of 10% at the time had been more focussed on compensation, inventory and monetizing real estate they believe kohl's e-commerce business could fetch $12.5 billion as a stand-alone company. the kohl's board and management team continuously examine all opportunities for maximizing shareholder value. our strong performance this year demonstrates that our strategy is gaining traction and driving results. today's bump definitely helps that outperformance for the s&p for the year the ceo will be on closing bell on wednesday. >> thank you very much for that. when it comes to activist

investors, not all bids are created equality we're here to help you navigate these type of activists scenarios. trade school is in session karen, give us the scoop should somebody like michelle over at kohl's be worried about a campaign like this >> well, that's a great question, dom. so there is a few things i look for. one, how big of a stake do they have in how much skin to they really have in the gain? here, it's not a huge position it's one and change percent. the second is what actions can they take? what did the corp.lations bylaws and charter allow them to do in this case, all 11 seats would be up at the annual meeting. so that's a very significant move if you want to nominate a whole slate of directors it is not easy to do it is not easy to win. the third thing is the history of this activist the better the history, the more success they have had in the past, the more likely they are to get people piling on, which

will help them in their case to take some action or get board seats to whoever it is however, in this particular case, engine is not the story. the other activist group from last year, i believe it's legion and anchor, that's the story they still own a significant stake. in fact, i looked. they paid higher than here for their stock. they have experience in the space. and looking at the sort of fine print of their standstill agreement, their nondisparagement agreement ends december 13th. i guess that mean mud is allowed to fly, if they're inclined to do that. also, they have to, if they want to nominate more directors, they have to do that by january 13th. that's the more interesting part to me. if we don't see that by january 13th, i don't think engine can do anything really except sort of, you know, make noise so i actually find the situation compelling looking back and seeing that they could have paid

higher than here for part of their stake and business has been pretty good since then. so it is an interesting situation. >> it sounds like given the time line you have laid out that we're still early on there could be a lot more development-wise over the course of the next several weeks here thank you for that i turn to you. what do you think about this situation? does anything get done in that time line that karen just laid out? >> well, a couple of things stood out to me. first was the relatively muted stock response, right? i think they were up 4%, 5%, which i would have expected this to be a bit more -- a bit more -- see more flow through in terms of the stock price and reaction and the other thing that really jumped out to me was the focus on e-commerce and real estate. if you really think about those two aspects of the business, those have been very highlighted through this whole covid pandemic situation they have been the darlings, so to speak, of this lockdown when you wrap all that together, the fact that the stock price

hasn't reacted the way you would think, it might point to a myopic view of how they're going to go about what the restructuring. so i get it. it just seemed a bit more -- a bit shortsighted to me, and that is why i think i saw the follow through i did in the stock albeit i think karen makes quite a few good points there, particularly with that marcellus group. >> no doubt that big interview over at kohl's will be a must watch tomorrow. gearing up to report earnings tomorrow, and that has options traders piling in. you are watching "fast money" live from the naaq mkesdart site right here in times square we are back after this

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welcome back this is "fast money. check out what's happening with toll brothers right now. they're up nearly 4% t. homebuilder is set to report earnings tomorrow after the closing bell options traders are betting that the results could take a toll on the stock's recent rally yeah, i did it there mike joins us to break down the action mike >> hi there, dom toll brothers we saw trade over three times the average daily volume, very close to four, in

fact calls did outpace puts slightly and you are seeing the options market is implying a move of just under 7% higher or lower after they report. that's in line with the average over the course of the last eight quarters however, the two most active options were a january 60 puts, nearly 700 of those traded for $1.20 a contract both of those obviously mean the stock will fall below the strike prices by their expiration dates. that could mean by 70 by the end of the week and below 60 on the third friday of that month >> all right, mick ko with the options there on toll brothers d dan, i go to you. >> mortgage rates have not ticked up too much we just talked about that. ten years not going anywhere right now. you know, we saw that lanar move last week. goldman upgraded it.

the charts look very constructive to me, the fundamentals possibly line up. i'm looking for a reversion in some of the -- at least in some of the trends we have seen over the last 18 months or so. >> all right it's a 48% gain over the course of the last year thanks very much for that, guys. be sure to tune in to the full show friday afternoon, 5:30 p.m. eastern time coming up next, your final trades keep it right here ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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sponsored by interactive brokers. all right. it is time for the final trade karen, to you first. >> yeah. thanks for being here, dom to me kohl's is interesting. whether or not they get something done, she's a good ceo and the chief. so kohl's. >> all right >> given all the volatility, xlv. >> all right dan nathan >> art a month ago shake shack

just look like it double bottomed at 69 >> all right the shake shack up 7% after hours. and guy? >> love brian's interview. tellurian, t-e-l-l. >> all right,