alan knuckman and scott bauer. good to have you guys on the show this morning. let's get you going with topic #1---it's a fantasy trade. which stock is it better to go long with? first solar or green mountain. > >i call these unicorn stocks because the price action is not to be believed. i like gmcr. i think the patent issue has been overdone to the downside and i think that with the coffee price being cut in half in the last year gives them greater margins. and you've gotta realize this was a $100 stock just a year ago. > > i really love first solar. take a look at what this thing has done over the last three days. monumental. up 40 percent. but that doesn't tell the story. the story is in what the chairman came out and said yesterday. their costs--solar costs are gonna be down almost 50% over the next year. and he gave guidance for the next 3 years which was almost triple what the street was looking for. this stock---albeit that it's up 40% in the last 3 days. stay on the roll here. look for this thing to actually trade higher than gmcr in the next 6 months. >

time now for some chart talk on this monday morning with alan knuckman. and things are looking up your way. good morning to you. > >good morning angie. > >you're watching southwest airlines. this stock has soared over the past year. its up about 61%. so what do you see? more upside? > > the sector has really taken off. its had a major move up since september about 60%. this stock has been trading in a range between $14 and $8 for 3 years. so right now we're about 13. looking for an upside breakout that targets $20, which is the 2003 high that we could get to. > > i know you love the options. what would be your options strategy on this? > > i like options for a couple reasons because i've got long time duration here and i've got limited risk. i can buy an in the money call. a $10 call gives me the right to be long at $10 when we're trading at 13. i can buy that call for about $3.40. so my break even on this is about 50 cents higher than we are right now and a january call has nine months until expiration. i've got less risk and looking for this stock to br

and now, from the floor of cme group, the two "ak"s, as one viewer likes to call them, alan knuckman and andrew keene, ready to electrify you with their trader smarts in traders unplugged. topic one: energize your money: which coal stock is likely to rise now that nat gas is going higher? - go ahead. - i like peabody. i think it is a beat-down stock. here at $19 it looks very attractive. we are at the lows for the year. it has come down from $30 just recently. so i think coal is an under-valued asset here now that that price advantage is going away for natural gas. - if i could choose "none," i would choose "none," but if i have to choose one, i was pushed up against the wall and alan was making me choose a stock, i am going to choose arch coal. they had record revenue and profit. the stock trading at a 52-week low. it is trading at 0.3 times book value. the chart looks a little weak. on a short leash, i would get long arch coal. - all right, moving on now to topic two: the housing recovery is going so well, fannie mae may be able to repay the government $50 billion from its bailout.

trader alan knuckman of optionshop has decided he wants to be "friends" with facebook. we will find out if that is going to be a worthwhile relationship. good morning to you alan. > > good morning angie. this is a stock that has seen a lot of turmoil, but i do like it at these levels. it has treated roughly between $32 and $18 for the last year or so, so $25, where we stand right now, is about the midpoint, and it has held as a support level for the last four months and looks like a good my area. > what would be your options play on this one? > > i am looking at a long-term options play, a january option, a $20 call which is in-the- money, the stock is trading at around $25 or $26. that option is going to cost about $675, and my break-even is only $1 higher with plenty of time for this market to recover and make a push to this upside resistance at $32. > what is your reasoning for giving yourself such a long- term horizon on this one? do you feel like facebook is an iffy stock? > > no more so than anything else, but i always like to buy enough time to be right. time is i

and now, what you've been waiting for: traders unplugged, starring alan knuckman and andrew keene, ready to tackle the topics of the week. good morning. let's start you off with topic number one: earlier this week we had a plunge in the market because of what traders are calling a "terror tweet." but what investors want to know is, will the twitter ipo be a buy? - definitely 100% twitter is a buy. if you look at - i take the el every morning, the subway - everybody is on twitter. they're not on facebook anymore. facebook is a sell, twitter is a buy. linkedin is also a buy. i think zynga, lottery ticket, that is a buy as well, because that is getting into online gambling. so i say buy them all and sell facebook. - the question is how do they monetize it? yes, it's popular. obviously it has an influence. but how to they monetize it? - someone buys them. apple buys them. - they had a contract to get a lot of advertising, so yes. but i think the best play here- i like to let an ipo trade and then make some decisions, so you don't get in facebook trouble. but looking at it, zynga i think as t

we are talking big oil this morning with alan knuckman of trading advantage. good morning to you. oil prices have been slowly rising, what do you see in the charts? > > good morning angie. it's a three part chart analysis what i look at is the sector. xle the energy spider has held solid support at 74. that's a halfway point of the november move from 68 up to the march high of 80. so that held solid. oil's broken out to the upside after trading between $86 and $90 a barrel for the past week. its push to the upside is a very positive sign. the stock to look at here is exxon. exxon has been stuck in a range as well between $86 and $92 since september. a tight range for a big company like that. so that target's $98 on the upside on a breakout. > > what's you options play here? > > looking at options that have limited risk and plenty of time to have some staying power. i'm looking at the january 80 strike. it's an in the money call. it's 950 in the money. it's going to cost me about 1050. so it's going to act much like this stock on the upside and i'm looking for a 10% move in the sto

joining us now from the floor of cme group, alan knuckman and andrew keene. let's get it going, guys. right now, japan is up, china is down. what is the best asian etf for investors' money? - i like them both. bullish, obviously. we have come down in support in china. china here is trading around 35. 32 is a key support over the last couple of years, and it is down 13%. i like japan even more. it is up 15% year-to-date. it has been trading between 12 and 8 for a good period of time, so it has some good upside potential - about 40% if it breaks above 12. - the trend is your friend. short the fxy, which is the yen, buy the ewj and short the fxi, which is the chinese etf. so i'm going to be buying japan stock, i'm going to be selling chinese stocks, and i'm going to be shorting the yuan. - so you're saying china- china's over? - 7.7%. came out on sunday night, it rolled the market over. - 7.7 is over? - yes. - ok. - we were expecting 8%. - round number two: sprint dish - dish is the latest company that wants sprint. but how can investors make money on the deal?