guess, the question, but we'll see what happens next year for ark. by the way, tonight, 6:00 p.m. i'll be hosting a cnbc special called "your money 2022. we are looking at key opportunities for your portfolio and breaking down some of the biggest issues that might derail investment next year you don't want to miss that and later in the week with sara. "fast money" starts now. >> pump up the profit, pump up the profits. energy investors striking liquid gold this year and when technicians see in even bigger names. we're drilling down on names with utsch in more room to run plus, a handful of stocks doubling this year should you double down on these doubles? find out in a game of trade it or fade it later, the bitcoin pullback, but we have not one, not two, but three under the radar ways to play crypto. we'll bring them to you. welcome to "fast money." i'm frank holland in for melissa

lee take a much deserved day off. guy adami, stevie g., steve grasso, and bono and eisen and the crypto baller, brian kelly, but tonight we have to start with the question, and i mean this from the heart. amazon, are you good just take a look at the mega-cap tech returns this year google up a stellar 57%. microsoft surging 54% and apple up 35% flirting with a $3 trillion valuation, i should say, but take a look at amazon that stock is just a bit stock it's been up less than 5% since the start of the year. so is amazon prime for a big turnaround in the new year >> i have to go to the one and only guy adami happy holidays. >> i'm sorry i wasn't here last week it is good to have you huge fan of yours, as you know b.k. has been on this for quite some time. if amazon can't perform in this environment given everything that's transpired when is he going to

2022 could be the year i think the reason why amazon has lagged it's basically going sideways since the summer of 2020 is the market finally sort of caught up with them in terms of valuation with the 25% eps growth and trading close to 70 times next year's umber, and i do think and a lot of people believe that 2022 could be the year we break out to the upside and we've been building the space for quite some time and barron's have called the picks in 2022 and i'll go out on a limb and say reel rally earnings in 2022 and take out the recent all-time highs >> some bold predictions there brian, i have to ask you a question because you're more on the tech side of things. according to rbc, amazon represents 40% of the internet how do you properly value something like that when so much of the web traffic goes through them >> yeah. i mean, that's always the problem, right is amazon a retailer or is it a tech play and is amazon web services your growth engine? if you look at it as a retailer and you say, hey, maybe this is

as good as it's going to get we had the great amazon recovery act which was the stimulus program that everybody got all of amazon's competitors were shut down. on the retail side they did really well and now looking at the '22, which the guy mentioned and the potential of everybody coming out in here, shroud getting crowded and microsoft is in there so you've got a lot of headwinds on amazon and at the time when maybe it was as good as it gets. so yeah, i understand. listen, if we break out on this base as guy is suggesting it will be a really big breakout. i'm just not convinced that that that's going to happen it seems to me that this is what we've called in the tank utilities are up 12 and as i mentioned amazon is up five and making a turnaround in 2022? >> so, i can probably find -- this is why i love this show

i love listening to the show while i'm on the show, as well i can find a way to agree with guy and a way to agree with b.k. if you look at the stock off the pandemic lows. 1680 was the -- was the price of the stock. it's up 250% or it was up 250% at its highs you've had years where google underperformed there was a year when google drastically led the counterparts this could be one of those years for amazon so is it as good as it gets? it bounced maybe it's being viewed as the ultimate stay-at-home stock and we've seen these stocks lose that tailwind, but also let's not forget they're becoming a poster child for a lot of this political angles that are aiming at it the same way facebook used to be. there's wages. there's work conditions and a host of issues, might be

headwinds for amazon going forward. i think the way you prefaced it could be right and i agree with guy. i think that you could see a catch-up trade and i don't know if it's as short a term that guy was talking about and some time the stock can come on and remember, we have new leadership there and it is the gentleman who ran a work s, and the reason why amazon is trading at the level it is is because of a work s. >> a big factor. we realized how big it was when it had the outage. where are you with amazon? are you seeing that in 2022? >> i'm slightly more constructive than some of the other panelists and i'll tell you why. rewind it back 18 months ago and we were talking about the initial transition from large tech to large-cap tech to overvalued tech and then into the value play, and amazon was heralded as a growth engine and

then we talked about the cash balance and that hasn't changed and there are 80 billion or so generating free cash flow. i believe last year was 25 billion. you're talking about a company that still has a fortress balance sheet. the difference is from growth, amazon has been identified as an area or pocket of safety and you can't have it both ways. you will have a situation where you're able to park money there and trust that it's still going to perform or you're going to invest for growth and outperformance, and you've seen just how punished those companies have been in terms of the upper end of that risk spectrum so for me, it's still a ubiquitous name and it still has strong financials and amazon is poised and it's ubiquitous amongst all types of retailer or any other type of business. >> you keep it as a core holding and you understand that it's not going to have the same outperformance and it won't have the underperformance either. >> steve, i want to come back to

you one more time before we move on >> you mentioned it as a stay at home stock and how do you account for it as well one of the fastest growing logistics operations in the world. >> i do see it as a stay at home stock, and what i like about it to the point is that everyone changed their buying habs and what's a costco or an amazon pantry now i'll order a lot of bulk items where they used to go ought ask buy them, but when you look at their logistics outlook. they don't want to have to answer to anybody. so for them they don't care about anything and that's why they're making that investment with rivian, as well because now ultimate tech play, frank. so you get everything that's sexy about tesla and amazon will

hold the keys to that literally, as well. a shameless plug for rivian. i'm long that name, but i think you're going see some bright skies ahead for amazon you know what? last point, i've always billed amazon as an etf it has everything you need in the marketplace the same way that berkshire used to be for the market participants. am one is its own etf. you can own one stock and own the market >> wow a lot there. a lot there. a big believer in pretty much every part of the business guy, i know you're a big believer in valuation and we just showed amazon 86 times forward earnings and from walmart, 21-target with 2017 because they r kind of similar to justify the valuation? >> that's what the market has

been struggling with that's been going on since last summer, july of 2020 and they're trying to get their arms around exactly that valuations become a favorite concern. i think it is justified and i think as we get into the new year you'll see inflows into the name for the first time into quite some time. so i'm a untiler of thester and we've seen sideways action to 20 plane, and so subsequent break out. >> if you were looking for winning play beck, and taggies sykoraals. the chief, my pleasure >> so everything is bigger in texas. i know you're down there in texas. the first half of your thesis is

a big departure from a lot of people you're saying underweight tech and our mike santoli put out an article that microsoft and alphabet alone are 20% of the gains in the s&p this year how do you go underweight tech with that? >> well, i think the important thing here is that you're not getting rid of your tech holdings you're not getting rid of your growth holdings that you have at all. you're just balancing out the portfolio. when you look at the overnames and we are participating in the upside of all of those nim,ame,t come around the summer team we decided we needed to trim some of the names back into the cyclical or value names because we do think that going into 2022 even though growth will come down a little bit and even though earnings will not be quite as strong as what we saw this year, we think the people are underestimating what the fundamentals will and be that cyclicals will do well when we talk about the

cyclicals, we look at the consumer discretionary names and you have to be choosy and financials are the space that we hold dearest to our heart going into next year where we would put most of our efforts. >> hey, it's b.k., and i have a question about the cyclicals because it's an interesting call and i love a contrarian call if i look at the economy, the things are calming doung, slowing down a bit and we have a federal reserve that says as well as the fact gets out of control we are likely going to induce a recession or at least that's the only tool that we have to reduce inflation how does that fit into the cyclical play. we're not onboard with what the market is saying and i know everyone is thinking about march being a live meeting and we're looking for it to be pushed back and maybe june and i'm not going totally rule out that the first

hike isn't until the second half of the year and when the fed has done is to increase the tapering is to give themselves some breathing room that should be when the inflation numbers peak, when you look at year over year comparisons. so inflation will start to come down, and i think that's what the fed is counting on and giving them a little bit of room so the market usually continues to do well and move higher up until the first rate hike. so if history holds true here you have at least the first half of the year for the market to do well before we start to see some issues and when you're looking at financials we think the longer end of the curve needs to move higher. we think that financials are cheap to the rest of the market and there are strong balance sheets for dividends to move higher and when you look at some of those cyclical plays and focus on those financial names and i think it will do well for your portfolio. >> when you're talking about cyclicals, i assume you're talking about staples and

consumer diskrecretionary are you concerned about inflation and cpe at 4.7%, very high and questions about supply chains when it comes to staples and discretionary? >> yeah. inflation, do we think inflation will be higher than where it has been historically? higher than the 2% level that the fed is always targeting? yes. we do think it will be higher than that and we think it will stay higher than it is right now? no, we don't some of the pressures that we're seeing from the supply side will start to come off some of the year over yes, you will have wages possibly continue to move higher and rents and housing move higher and that will be the stickier part and we think it will come down from the high levels and yes, more inflation and not to the extent that we're seeing a lot of people that say we'll have for the rest of the year >> all right victoria, great stuff as always. i appreciate it. all right, team.

guy, i'll come over to you, and the 10-year right now at 1.484, but you are more focused on the spread between the ten-year and the two-year >> frank, i want to be clear there were a lot of people that are bringing this up and maybe looking at the ten year is not the right thing to look at and here we are at 1.5% and the two-year that was 20 bases points in september is outside of 80 basis points i think what you're seeing is b.k. will back me up on this and you're seeing inflation concerns on the front end and the market is doing the front end of the curve and the back end saying maybe the growth is not going to be as robust and that's not a particularly friendly environment for stocks i don't think it's a problem right now. i think it's something that we'll talk about next spring or so, and i happen to think that spread which is probably 70 or so basis points now, i think it will get down to 30 bases points

and that will be a problem and that's something that the market needs to keep an eye on as we get into the new year. >> guy, do you think we're overassessing the damage, should we be talking about the new year and just the spret >> i took my eye off the ball, in relation, the ten-year is telling a story and we're seeing historic moves and yes, you hoob, and don't look at the ten-year in a vacuum which is what i've been doing recently. >> do you want to address what guy is saying? >> i think he hit the nail on the head the two-year are telling you that things are protracted than perhaps people have been worried about and if you don't see that

carryover from inflation concerns to the ten-year which will be more of a gauge of productivity and economic growth then we have an issue. i will say as a contrarian, that will be negative for stocks en masse. i don't think that situation necessarily isolates growth as being a real concern because you're probably going to extrapolate or discount based off of the ten or five year or maybe aing further discount facr the next pocket that i would look at is also the financials that yield curve steepness will be people making loan, and that's essentially where you're sourcing financing affects housing market to money center banks to financing and trading so i think that is definitely a nice flag by guy and something we'll talk about. >> we'll talk more tech cathie wood trimming a bunch of her big

holdings so is there more trouble for this trade we're breaking it all of the way down plus high energy, the oil sector seeing big gains this year, but where iist headed next? we're hitting the particular nic technicals when fast money returns. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. new projects means new project managers. you need to hire. i need indeed. indeed you do.

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all right. welcome back to "fast money. take a look at the cathie woods sell list. the fund manager trimming in a very big way let's get to our bob pisani with much more on those moves. >> cathie woods started the year as a bonified superstar in the rarefied world of active stock picking. she ends the year still a superstar, but the ebb and flow of her flagship fund illustrates the danger of being an aggressive, active stock picker among her largest holdings, bloc, coinbase, unity software, zoom video all down 10% in december alone, twilio, teledoc and spotify and a 3% decline from her largest holding which is tesla yesterday wood lightened up on many positions selling stakes in most of her major holdings give know how volatile the stocks have been, holders of her flagship ark innovation fund have been remarkably loyal since peaking in april with 201

million shares outstanding there have been a slow, but steady trickle of outflows. that's down 15% from that april peak, but that level has been fairly steady in the last few weeks. that is impressive loyalty given the fund is down 21% this year and 38% off its 52-week high it hit that way back in february, and that it also, remember, hit an intraday low for the year just a few weeks ago. >> and most of the major holdings also hit new highs earlier this year, all, but tesla are 30% off of their 52-week highs. there's nothing wrong with cathie woods' line of representing and disruptive companies will change the world. true enough, but when everyone buys into that argument, and prices go through the roof for companies that make little or no profit like teledoc or twilio or spotify or uniuty software, or you have companies that trade for an enormous multiple to

future earnings like roku, bloc or tesla, you will have some investors inevitably start questioning what the right price should be. back to you, frank >> back to you, bob. >> great insight frank kelly, i'll go over to you. is the thesis broken or is it not performing with omicron, and the ten-year is not as important and a lot that impacts high-growth stocks >> i don't think the thesis is broken at all. if you talk to cathie, she's talking about a five or ten-year horizon. this has less than about cathie woods' ability to pick stocks which she's great at and if you happen to buy her etf at a 52-week high, and i don't know what to tell you and you're selling it down at the lows and that will be a problem and that has nothing to do with the thesis and that is how markets trade. i don't think so at all. people bought into it and we got a little ahead of ourselves and

i look at all of those stocks that she's in, every single one of them has the potential to completely change the industry that they're in. so you've got to think about it on that period of time a five to ten-year horizon, and close your eyes on this one and not worry about the volatility to cherry pick 52-week highs and 52-week lows seems a little ridiculous to me >> b.k. is saying that maybe they got in at the wrong place and steve, i'll go over to you is there a chance the world's changed? a lot of growth in the stocks when we were locked down thinking maybe this would go on forever, but as we're seeing whether you look at airplane travel and whatever else, people are slowly, but surely going back to normal >> yeah. i don't think these fit into that bucket of pandemic or stay at home or non-pandemic. this is the future and it's innovative by its nature and we don't know what her internal mandates are on these etfs as

well and when she wants to sell or when she wants to buy i agree with b.k just remember when we were all in person and i was sitting next to her on the fast money desk she was talking about tesla before anyone even cared about tesla. this is a woman who picked stocks like no other, but she's going to burn really hot and fizzle really loud and she'll have a bandwidth of where her performance will fall with it. so take it with a grain of salt for a longer period of time. great, but a lot of these names can and will turn around, but i don't think you're going see that happen in the first quarter of next year, but there could be pain in the funds. >> it looks repositioning by cathie wood herself. cathie wood is not the only one hitting the sell button and

check out abbott labs and linde. he is trimming his position and you can readal about it in today's investing club newsletter and sign up right now at cnbc.com/investingclub or use the qr code on your screen we're just getting started on fast money here's what's coming up next. >> energized and ready, the sector making big gains this year so can the climb continue? we're digging into the charts next plus, double trouble a number of stocks doubling in 2021 so how should you play these big winners? the traders weigh in with a game of tradet ior fade it there's more fast money coming up

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welcome back to "fast money. if you bet on energy, con graj lakzs. it's the top performing sector, the xle up 48% in 2021, so here's the question with that momentum continue into 2022. i'll toss it over to you first do you see a setup for oil prices to continue rising higher and do you see a setup for energy to be in the strongest sector >> yeah. going back to guy's point earlier, if that two-year continues that climb, i think it's telling you about inflationary pressures and typically commodities do well in that environment specifically. again, the caveat is that i would keep an eye on that ten-year and that doesn't bode as well and we're talking ten years out at that point. so, yes, i think in the short term we had the strategic reserve release that led to the downtick and there's been supply disruptions and some of the opec nations and libya and nigeria

and that has led to bullishness and when you look at uso, uso specifically, i really don't think that gives you the core that you really want so you will have to find a tertiary way or ancillary way to get exposure that to and the integrateds and the servicers have been there, and there has been a laggard effect there and you will see that trade catch up as people look for ways to continue to get exposure to the sub sector >> guy, over to you. >> do you see that momentum continuing, as well? >> first of all, it's a great work and i'm with bono on this one. so i thought crude would be triple digits by the end of the year and that's not happening. to bono's point, that spr released coupled with this new variant and late november. that took the wind out of the sales with the crude trade it's a huge tailwind and it will continue to ratchet higher and we cratered into august down to

168 or so and had a big bounce we cratered again and seemingly held the level and stay started to break it down and a name like halliburton and eps growth halliburton should be a $30 stock if not higher, so i love the energy trade into 2022 for sure >> guy, you're not the only one. our next guest says oil will continue to pump profits into the new year and has one name you just might want to bet on. let's bring in katie stockton. happy holidays, katy >> you, too, you, too. i think with the corrective phase and advancing from it, i don't know if we can pump profits, as you say, but i think it will see some good short term up sid and the sector and the sub sector because you've seen underperformance and they're relatively oversold and now with wti kraud oil having cleared its

50-day moving arj which is roughly $82 per garl and that's 8% above current levels and i think there's room for short-term upside and long term momentum is still there. however, we do fell that we'll see a corrective phase for the equity market beginning in the middle part of january and i don't think the sector will be unaffected by that so we have a more of a neutral bias beyond the near-term and we'll take it as it comes. >> thanks a lot, katie >> guy, i'll come back over to you. katie looking at the technicals there and i know you're bullish on energy and oil in general are you seeing the setup like she's seeing it? >> 100%. >> i never thought we'd see the move we saw to the down side and it made sense in retrospect and given the spr release and they fired that round of ammunition i don't think they'll use it again, and i think you'll be surprised at how quickly crude will run in the new year

so i'm absolutely with cato this one and i think you look at the most levered names and it's want the oih. it's names like ps any, and names like that, and i think there's safety in the oil service names specifically halliburton. >> this bandwagon, and i'll throw someone else on the bandwagon. the eia and their forecast is for brent to double in 2022, to $186 a barrel. steve, i'll go back over to you, and you're one that, omicron is a speed bump and the recovery will go faster thanna. when do you see them quote, unquote going back to normal >> so the problem with that is a lot of this inflationary tailwinds have been based on supply chain constraints so i think that as we see us getting back to normal, you're going to see people use more, of course, but you're also going to see those bottlenecks dissolve

so it's going to be a little bit of a tipping point and you'll balance each other out and i'm more in the camp that crude will probably just get back into the trading range between the mid-06s and mid to high 80s and having said that, the xle has done nothing for five years, frank. so if you want to be in this trade, who will benefit more if the price of oil stays right here emp companies, they're going to explore and they're going to produce so you buy the etf and the xlp. that's up 68% and that's up 68% and amongst the constituents of that, you have it's muted and not dependent on one stock >> up 68% and we teased this she has a name that she's suggesting that we get in and she'll walk us through that trade. >> it's more of a natural gas play and it's williams company so wmb, very oversold and we're

noticing that williams is also pure kmi or kinder morgan being there exhaustion given market indicators and these are short term tools that suggest there will be a nice relief rally in this space and they have relief rally for natural gas and xlp. we agree that there's much room for relief rally, as well and we are bullish this space and more short term oriented and williams seems like a good way to play it >> thank you, katie. i appreciate the insight guy, coming back to you. i know you're a big fan of the space. are you you in for wmb >> it's a number of times and i think he's on the show tomorrow night and i'm sure he can wax poetic and you see mr. kinder buying back stock hand over first and that's something that we like to see and valuation just makes sense these are downstream plays that have not done anything in a

while, but i think are ready for the next leg higher as crude moves higher early next year >> coming up on "fast money. are they still worth holding and the traders will give you their two cents with the game of trade it or fade it. that's coming up next, plus crypto carnage and bitcoin erasing all of the gains this week and one of the traders has a few under the radar plays in the crypto space we'll bring you those names coming up next get your trades to go with the fast money podcast catch us any time anywhere follow today on your favorite podcasting app we're back right after this. (soft music)

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welcome back to "fast money. as we ran through 2021, we're talking three different stocks and three different industries and ford, and nvidia and moderna. as an investor is it worth doubling down and what better way than trade it or fade it let's start with moderna it is up 12% since it started the year guy, trade it or fade it >> one of my favorite games, frank, and i'll play it directly for a change i'll fade it and you mentioned

how long it's up over the year and let's talk about the move over the last couple of months this stock got cut in half since the summer let me tell you, i was bullish for a long time and what i've come to realize is the bloom is off the rose and the analysts downgrade the name and at a certain point a valuation play and it's a chance to trade down 180 bucks. >> b.k., what's your take? >> at 180 bucks i'd trade it here i'd be a buyer of this name. number one, it is 50% off the highs. so now i've got a stock with year over year momentum, but has come down. why has it come down because we all thought the mrna vaccines would be a one and done type of thing and that's what people priced in and now we're in the endemic state so we'll continue to use this not only that, but this technology will be used for other diseases so in the long run, you've got a long run of innovation and

potential surprises coming and 50% off the 52-week highs and i want to trade this one >> up 126% this year grasso trade it or fade it. >> trade it. this one's an easy one they've been innovative and they're moving towards the ev space like no other time in history. jim farley has done an excellent job leading that path and making it relatable and exciting and the ford f-150 lightning, frank for a few days and that takes the need out of a generator for the house as well, but this one is an easy one for me and it's not losing momentum in the last three months and the stock has been on fire and it's a trade. >> trading or fading i'm fading it. i have to admit, steve makes a lot of good points here and springeling a about the of would

you rather, but when i look at some of the comps and they justified the multiples and when i look at the ford and the debt valuation and the return on equity i deploy capital and get similar type of exposure and get more bang for my buck so i'm fading this one >> nvidia, the chip stock soaring 133% this year b.k., trade it or fade it? >> i'm going to go contrarian on this one as muchas i've liked nvidia, fade it. 70 times next year's earnings in an interest rate environment, that's not going to be great secondly, we already know what the company does and it's got a long runway there, but i'm not lewis and clark and i'm not discovering new ground and nobody else is, so absent any type of new product here i've got to fade it. >> trader fade nvidia.

>> i'm trading this one and again, it could be a fundamental analysis there and it is expensive, but it's justified and strong free cash flow, balance sheet, expanding margins and the lewis and clark is the nft and the metaverse. this is going to be at the center of the whole infrastructure buildout and i want that exposure so i'm going to trade it. >> keeping this lewis and clark thing going. >> stevie g., are you trading or fading >> oh, man this one was -- i guess you can get on the bandwagon here. will be a fade for me and guy adami likes to look at charts as much as i do, and this one if you go back to 2018, this is a textbook double top. this one got all absorbed up in that reflation trade, and i know j.p. morgan is way bulled up on this, but i think the target is moving on them i think the stock price is going to come in in the next couple of

months guy, you have the last one trade it and bait it >> i'll trade it and people talk about lewis and clark, people forget that sacajawea was basically running that show. nobody talks about it, they should alcoa's fantastic finish as well and it will be a fantastic finish and i know what steve is saying and they have pension liabilities that are able to get off the balance sheet in an elegant way. i've liked it all year and i'll continue to like it into 2022. trade it >> wow quite possibly the first sacajawea reference in cnbc history. bitcoi bitcoin coming up and getting better our resident bitcoin baller brian kelly serving under the radar crypto plays next plus shares of american eagle well off the highs of the year and options traders are betting on a turn ornd for this retailer. mi have all of the details cong up. don't go anywhere.

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all right. welcome back check out the action in bitcoin down more than 7% right now holding well below that key 50,000 mark, and as the hype around the metaverse gains momentum our trader b.k. says

there are other ways to play the crypto space b.k. was with revolutions. a lot of metaverse talk out there. >> yeah. a lot of metaverse and the metaverse isn't anything new and it is starting to catch on particularly with facebook changing their name over to meta, but what you have to remember is that bitcoin is trading separately from a lot of these other names out there. so the three that i've been looking at and they're three that i've been long for a while now and they're in the gaming space as well as the virtual world space. number one is axio infinity. this is pay to play and really came on the scene this year like gangbusters and it's all about network effect as long as this game continues to grow, the value of the underlying currency will grow with that net worth. the other one is going to be sandbox, s-a-n-d, another

cryptocurrency again, in the gaming space and as the network grows the currency will tend to grow with it to serve as the underlying economy, and then the last one is a virtual world a lot more of what we think about when we talk about the metaverse and that's decent ral land so in decentral land you can do a lot of different things virtually and the currency of that virtual world is mana, mf and as these virtual worlds grow the currency needs to grow to service the underlying economy and that's why i like these three. >> let me make sure i understand axiom, infinity and sandbox, these are games with the cryptocurrency tied to them? >> that's right. an example of axiom infinity, you play the game and you earn that currency and then that currency is traded just like any other currency in the world and

you look at somebody -- there are a lot of people in the philippines that are now playing this game, and earning the currency and making more money by playing this game in a year than they do as an actual job. so that is really where a lot of this growth has come from. >>. >> stevie g. are you confused how a game makes money i'm still trying to grasp the whole metaverse here. >> yeah. i think b.k. is about two months away from growing a jack dorsey bid and going off the grid in the philippines, quite frankly, but i do like -- i do like the way he thinks. kudos to him he was way ahead on bitcoin. he was definitely the explorer on that one. so, yes. i am confused, frank, and i think that's what keeps people a little offset, but the biggest thing that is the best thing that's happened to cryptocurrencies are nfts and

these games that b.k. is talking about because right now it makes bitcoin and ethereum look really, really understandable to someone like you and i >> kids have it too good nowadays you can literally tell your mom you can make money playing video games. don't miss the cnbc special crypto night in america, digging into the latest themes in the crypto space that's tomorrow at 6:00 p.m. eastern right here on cnbc we're going all american for options action and american eagle getting buzz in the options pits today and we'llee the retail name is playing out. you're watches "fast money." we're back in two.

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welcome back to fast money coming up at the top of the hour and cnbc special your money 2022 and we'll break down what's in your for your money. it's all coming up on cnbc check out american eagle outfitters outpacing some of the apparel names today. this stock is up 30% from its highs of the year and one options bull is making a bet that american eagle is about to fly much higher. mike khouw joins us now toic bra down all of the action hi there, mike

>> hi, frank how are you? american eagle, most of that activity was concentrated in the january 14th weekly expiration 24 1/2 strike calls and we saw one institutional buyer and a block of 4600 contracts trading for just over a dollar and overall more than 8500 all day and an average price of about $1.11. buyers of those calls are betting that the stock can rally from the bounce that it has recently experienced and rather than the expiration on the 21st and possibly the fact that the company is going to be presenting at a conference on january 11th that might be the catalyst this trader is looking for. >> mike khouw, great stuff as always i haven't been in anamerican eagle in a very long time. in general, whether it's this stock or the broader retail landscape, how are you feeling going into 2022? >> you know, i have less conviction about that as i do

about this actual option trade so i'd like to focus there this at the money option with short term to maturity, this is textbook i think i know something now -- and i definitely want to tip my hat at the conviction there and you'll have massive data bleed and you're playing for an upside move and this is definitely an eye-catcher. >> stevie g. over to you courtney reagan, and we're talking about a lot of the retail names and are you seeing strength going into 2022 we already bought some of the stuff we want. >> people still have money in their pockets and they're cash rich and they have an unlimited amount of places to spend it at, but american eagle specifically has a short interest above 12% so we shally talk about a host of names that have this shortage that elevated it at that level this one has more than its peer group.

so to his point, i think the options trader might be playing and i think i know something and he's got a lot of torque to get into the upside here >> interesting >> you guys are focused on this options trade. we brought it out and you have the options trade. >> be sure to tune into the full show friday at 5:30 p.m. eastern. >> up next, "fast money. we've got your final trade stay with us ♪ ♪ ♪ ♪ ♪

>> all right time now for the final trade let's go around the horn stevie g you, i know i've been pounding the table on this one. it's up 25% about 12 days and i think it's going up another 30%, and i have a lot of conviction like that options trader >> ice >> if these two things really have teeth and the financial sell-off and i'd like at b.x. >> b.k.? >> for me i'm going to look into the oil sector and exxonmobil. i know a lot of people don't like it, but it reminds me of a tobacco stock. i have a high dividend and a product that people still need to use so xlf >> interesting correlation there. >> guy, you've got the last word

>> i find the kirkland brand works very well for me frank, you can shop anywhere you want because you look good in anything, my man tall and handsome. >> vicious, vicious, well done by you and i'll throw disney your way because the worst is over dis into the come back more often. guys, you were great thank you. thank you all for watching "fast money. cnbc special your money 2022 starts right now tonight sectors on deck. we take you around the horn to the market's biggest trends. first up the financials how will the fed's ongoing dance around inflation impact your money? then tangible returns? we go back to the basics with the best of the companies that make actual things the industrials. plus, home is where the health is the chief of a major home builder explains how her company hopes to reinven