. >>> mike khouw, they are investing more in originals. and they say they are spending less on making their own content versus licensing from studios. >> the big issue had been concerned about rising licensing costs. when they first started to purchase content they had attractive deals. everybody was concerned, what's going to happen when they actually start paying the rates the studios will start charging them. they've mitigated that by creating their own programming. the thing is, creating successful content isn't easy. and the notion that every single thing that will come out will be a hit like "house of cards" is probably too optimistic. the stock is priced as if they'll hit it out of the stock every time. trading about 100 times what they are expected to make this year. that's pretty aggressive. it's been a really tough stock to short on valuation in the past. we've seen within the course of the last two months what's that can do. 10% short interest. my inclination is we're getting very close around the all-time highs. i'm probably in

. ♪ you're the meaning in my life ♪ >> imagine -- having all of mike khouw's greatest strategies in one >> the nice thing is if you use options sometimes you can get a little leverage and that's what we're doing here. when the market is up and premiums come in, a great time to bip puts to head your portfolio. >> timeless wisdom by the man some call "the yoda of options". >> this put spread has fairly nice numbers to it. buying it for a little over a quarter between the distance of the strikes. >> a once in a lifetime collection, "options action" presents, khouw's classics. 16 mind-bogglingly complex strategies that will have you risking less and making more. such hits as "the covered call." >> to do a covered call. that is, if you own the stocks, look to sell a call against it. >> and even the 1x2 put spread. >> buy one of the 60s, sell two of the 50s and targeting that 50s strike. this is threading the needle trade. >> but wait. there's more. order now and you'll get fundamental indicators, like ebitda and everyone's favorite, historical valuation analysis. >> it's actually trading at

mike khouw, what do you think?re's an interesting statistic. 18 of the top 20 most active options in ebay today were calls. one of the ones we saw a lot of opening buying activity, february 56 calls. they expire a week from this coming friday. spending about 50 cents to buy those. over 7,000 trading hands. the catalyst they are looking to is the goldman sachs conference taiking place where they'll be presenting tomorrow at 8:20 in the morning pacific time. a lot of this bullish activity is linked to what they might be saying then. >> for more "options action" check out the live show 5:30 p.m. on fridays. >>> let's get to tweets. this one for guy. why would be a good stock play in the wake of all the cyberhacks. >> this must be a new viewer. we've been talking about palo alto networks for a few years. traded up today. it's fresh on valuation. i don't think so. believe their report on march 2nd. panw gets you done. >> any hope for mattel? >> i don't think you need to jump in it right now. hasbro, they are just eating

and mike khouw for more "options action." check out the 5:30on show on fridays.we have your first move tomorrow when we come back. stay tuned. can it make a dentist appointment when my teeth are ready? ♪ can it tell the doctor how long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro, you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard. >>> time for the final trade. let's go around the horn. pete najarian? >> well, with all that activity we saw in general electric