ik to have the conversation. he was a good friend of mine for half my life. i would just love to know what his endgame was with this and does he feel any remorse. is there any remorse at all for this? -- captions by vitac --

stay but reduce, ultimately, one-on-one, going to flip it around and get long. that's not now

reducing shorts. here we go now, what we really want to talk about, of course, is the etf which is the same policy the person who wants to be bearish would say ultimately this head and shoulder shouldes here's the uup what we know again, the june high, the august low, were almost at that level final chart, since i put a line across this, typically before you undercut and break, you get a countertrend rally of sorts. so it would be this kind of thing ultimately before that kind of thing. one could say, so, wait, you're bullish or bearish meaning the dollar is likely to fill a bit, even back up a bit so the volatility is likely to shrink here on the dollar. >> carter, thank you very much for a look at the dollar and

etf. mike cohen, what's your trade on what you're doing with the u.s. dollar >> yeah, so the interesting thing, i was taking a look at silver, so oftentimes, when we are thinking about what's going to happen to currencies whether we have a lot of inflation, as currencies weaken, we think of metals, industrials and precious metals rallying. based on what he was talking about you might think that the rally we've seen in silver recently in that case would be done my thinking is we may have upside on long, it may not happen but what you're thinking do i want to chase it here and why would i be interested in doing that so, i think right now, the fed is really trying to navigate a very sticky situation. while we are looking at these conflicting data points of inflation versus employment, the fact is we often have other things to think about, which is what are the implications of

higher rates including that government has taken over tremendous amounts of debt over the course of last several years. and that is going to create some real pain if rates go considerably higher. so i have a feeling that we're actually going to end up with an inflation rate that is much higher than basically the target rate of inflation that we had recently i think that's good for precious metals any out of left field risks could create a bolster for precious metals. so what i'm looking at is a call spread i was lacking at the january 21 call, that is about 80 it was above 21, i think it was 2115 or so you could look to an out of money call spread which is going to raise the break-even on that trade for you. i think this is a way to get participation without running

out and buying slv without enjoying the rally so far. >> a spread there. scott, what's your take on the trade there, what's your way to play the dollar and silver >> it's interesting, we have to slaw a description between what they think markets should do and ultimately will do today was a perfect example, if all you did is look at the jobs number today and try to predict where the market was going to close. you certainly would not have thought that the equities are unchanged and that the rates would be lower maybe what mike is suggesting makes sense because if rates do continue to come down, some things like gold and silver likely will appreciate mike and carter know i'm not a big fan of precious metals but mike's option trade makes a lot of sense if you want to find your risk and have upsaid exposure to pressure she is metals the problem with me, with long term rates of 3.5% and fed

trends typically in march above 5%, i have a tough time seeing rates stay here. i think it would go higher and that would hurt my strength. >> mike, with that in mind, this is the silver trade. any thoughts right now, we've seen similar price action in gold as well gold or silver, which is the better way to do this? >> so, interestingly, up until two weeks ago, i was long. i've subsequently pared my position carter can probably speak to the gold/silver ratio better than i can. my thinking here is silver may actually have more near term upside on a relatively basis to gold i do like both if you happen to have a gold position, i wouldn't necessarily be paring it >> what do you think, carter we might have charts here to look at on the screen, but silver is sort of the more dynamic trade with precious

metals if one is bullish, we are silver over gold that's the latest. >> all right let's turn from metals to musk elon unveiling the production version of the new tesla semi truck last night several years late, but the ev maker did deliver the first semi truck with a promise of 500 miles of range and if the new semi is sparking your interest, scott has a way to trade tess letter stock without options. takes through the stock, scott >> yeah, dom, we want to trade tesla to the options because of the all of the thing that's gone on i think it's likely to churn, until we get stability or understanding on what elon musk is going to do vis-a-vis tesla because he seems to be completely engaged with twitter right now. but your point about the semi also points out every time tesla's had good news, it's been reflected by bad news. yeah, as you pointed out, wonderfuled in with the semi

they delivered yesterday to pepsico. the problem is it's three year too late they also announced they wanted to ramp up production in china, congratulations guy. unfortunately, they just had to issue a recall of 340,000 vehicles in china. every time there's good news there's bad news that means that the stock is going to churn. but we can use options to take care of that and the way to get that and get the mass working force a little bit is to buy a call calendar spread i did this earlier on tesla. i bought one of the march 225 calls and reduced the whole trade by over 40% by selling one of the january 225 calls i paid $7.45 for the whole thing. that's my max loss but what we want to have happen here, dom, we want to have tesla turn sideways maybe rally a little bit between now and the january expiration once that happens, that january call that we sold will expire

and be long march call and we can do all sorts of things we can sell it for a profit. we it turn it into a different sort of trade but this is the sort of different payoff profile you can only get using options >> that's the tesla tradethere mike, any options with the calendar spread? >> yeah, i think that's a good way to play this because i don't think we've seen the near term bottom for tesla when i take a look at this, this is something for more carter than me but when i look at the charts i can see 145-ish i understand why it's tempting to reap out and buy the stocks considering more than 50% from the all-time highs but the valuation is it's entirely cheap i never want to count elon not i never want to count tesla out. i think it will make a great product and he's arguably the country's best entrepreneur. it feels very heavy to me.

i wouldn't be reaching out and buying the stock this is a good way to play for the judge side i just don't think it's going to get a near-term bounce >> it feels heavy to mike, does it feel heavy to carter? >> it peaks, s&p 500 peaks january 4th. it's a 6% decline. and at this point, as scott described it's likely to back and fill and sequence sideways before ultimately going forward. no discernibled me direction here to my eye >> anything to the reaction on what carter or mike said about your trade >> well, carter is saying that we can use a call calendar spread to take advantage of this backing and filling and sideways work and i understand why mike is a little dubious but i also think that the people who love tesla stock really love it and they're going to look to buy when you see what elon is going

to do. >> for everything options action, by the way, check out our website and newsletter as well we do have more options action coming up in the show after this keep it right here still to come, an options twofer, similar extends today after two very different companies boeing and netflix plus, calling all "options actions" pals, reach into your pocket, grab your phone and tweet us your answer at "options action action. if it's nice we'll answer it on air when options actions return. options actions sponsored by td trade.

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that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. action." an impressive run for stocks over the last few months the s&p is up more than 13%. two names feeling the love, boeing and netflix those stocks on absolute tears going up more than 51.in that span netflix up more than 36% can the climb continue, carter is starting with boeing. carter >> let's get right to it chart, no drawings some lines. what do we know? we have a well defined downtrend line we have a double bottom. we know the s&p made a new low in october boeing does not undercut the june low here's the issue, we're up against that trend line, third and final chart, remarkably and so often the case it is to the penny, to the penny, to the penny.

we have about 2% to go and boeing can do this, but this point, one that you like to start trimming or selling premium. >> okay. all right. so, scott, i mean, i see the chart there. what exactly then would be the trade that you would put in reaction to what carter just showsed you on boeing? >> well, dom, let's look at the fundamentals real quickly because just today "wall street journal" announced that united airlines is set to buy dozens of 787s, maybe as even as 100 we expect substantial revenue growth for boeing over the next two years. as much as 50% over the next two years. i actually think boeing is going to ride the trend of everyone wanting to bust out and travel but i'm wondering what carter has to say so the way to trade this just to buy a call to get long exposure than just running out and buying the stock. earlier today, you could buy the march 190 strike call, $13.25.

this is the way to trade it. and we are going to trade it and because we're buying a relatively lawn-date long-dated, we're going to have time to make a decision 13.25, that's the max as opposed to buying the stock. >> mike co, what's your take just buy the call? >> absolutely. here's a couple ways to look at it, if you all you did is the price chart and capitalization, you take a look at where the company has come from or down, to you'd say the company has been cut in half or maybe a little more. actually the value in the business the enterprise value has not declined as much the company has lost or will have lost $20 billion in the last three years if we see earnings come in like i think they will by the end of this year we've seen an increase in $14 million in debt. and the company from its

all-time highs and yet the picture looking forward is not that great 787s is not where the company is making their money they make their money in the single aircraft. that's where they found themselves in trouble with the 737 max. they're facing a big deadline. december 7th, they're out in d.c. now lobbying. they need at approval of the maxes that's about $50 billion of outstanding orders that could potentially fall through so, i think you wouldn't want to go out and buy the stock or chase it here. but if you think they're going to get a positive bit of news out of that deadline then you could buy this call. one quick point, when you get that additional leverage on the balance sheet that accounts for the additional liquidity these calls on a relative basis are about the same as they were back at the end of the third quarter of 2018, if you adjust for the additional debt on the balance sheet. so very reasonably price calls in my view >> a dow component up 51% just in this quarter alone.

let's set boeing aside, big trade there. let's turn our attention to the other name here, netflix the streaming giant having a bull run but still down over 40% this year. carter back to you for the chart and technicallies on the netflix. >> you bet as rides go, doesn't get any wilder than this, 700 high you've got a low -- well, basically 320 now, doubled from the low of 160 doubled. so what do we do let's put in some lines. what we know, it's been very orderly, right, a cent, a pause, a cent, and a pause. look where we are. final chart. we are back to the scene of the crime. the stock plunged on its news of 329. it closed at 320 today the definition of overhead supply is now in effect. people from here who want to get their money back, thank goodness, i'm out. i can't believe i've endured this and that's only one kind of memory then there are people who bought it here who want to, of course,

let me grab this i've made a fortune. this is a huge level i will either sell calls or trim my longs >> okay. so if we are watching that, how quig could this be -- i mean, netflix was an investor darling for such a long time so who wins out in that particular tug-of-war? i guess it's not really a tug-of-war there is overhead supply but how significant could it be at that 329 level? >> well, here's what it is the whole concept of where shares were purchased. we know, right, for a four or five-month period, purchases were made at 3:30. we also know that there were a lot of purchase lassess made he. when you have purchases, you have sellers who want to book those. when you return to those people who have lost a lot of money want to recoup their capital it has nothing to 0 with

fundamentals this is typically where they want to get their money back how do we explain this, dom? 700 to 1160, was it expensive here or cheap down here? the point is you're back >> carter, thank you for the chart there. mike co, how are you playing netflix given this overhead supply that we could theoretically be seeing in the coming days? >> it was expensive up there and it was cheap when it got low, it was cheaper than the s&p when it got to 1 is 50 that's the only time in this trading history that you'll be able to say that i did buy some of that i ended up selling too early if you had the prediction to rally, it makes a lot of sense to me now that the company is no longer cheap that has run with short term maybe over. one of the things you could do in a situation like this is consider sell something upside calls. because this tends to be a volatile stock and another way to play it and a way to somebody

who doesn't own the stock is potential play with the call sell i was lookiiing january 6th call i could select that stock price over the course of one month bear in mind, this is a trade if you own the stock, you're thinking of doing a covered call something that tim seamour was talking about in the prior half hour this is a trade that you put in equity position. and if you think netflix is going to stop for a bit you could sell the call and even the put side as well and come up with an iron konder >> i'm not sure of the trade here >> thank you for netflix and boeing next on the show, we're taking your tweets so head over to twitter @alps "options action. ask us your most burning

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good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. welcome back to "options action." it's time to take some tweets. our first fan asks with the vip

under 20, what's the best way to combat the volatility. scott nations, what do you think? >> i have to ask you does your portfolio look more like 100 with the futures trade on the cme, the options trade on nasdaq and buying a spread would be the best way to play that. >> scott nations there with the trade there. the next tweet says insurance from the s&p has significantly outperformed the s&p in the last year and is running 20% in the last two months. how would you play the insurance secretarier? >> carter braxton. >> it's a big move, my call is to stay but to sell calls, 44 to 45 it's a great etf every big one from met, allstate, all of them.

>> mike co, what do you think about the insurance side of things? >> yeah, we actually made an insurance play when we were talking about berkshire not long along which is an insurance play all its own. i like the space it wouldn't be a bad side to pay for further upside >> thanks very much. guys we got coming up next, question got the final call. keep it right here we'll be right here after this short break. "options action" is sponsored by think or swim by td ameritrade we're carvana the company who invented car vending machines

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welcome back time for the final call. carter, start with you >> shoort by the dollar, gettin crowded. >> scott nations >> i'm buying spread >> mike. >> call credit spreads in netflix. that does it for us on "options action." we are back right here on friday next friday, 5:30 p.m. eastern

time keep it right here markets were off to a really weird start today. closed up almost in the green. keep it right here "mad money" with jim cramer starts right now >> it's every parent's worst nightmare. your child is born with a deformity -- a face no one wants to see. in poor countries, over 200,000 children a year are condemned to a life of pain and rejection, hoping for the miracle that will change their lives forever.