good monday morning to andrew keene, president of keeneonthemarket.com. at do you see in the charts for linkedin? - linkedin is a beast. on friday, they made a new all- time high. with the story in facebook, facebook's climbing, people have high expectation for linkedin. i've actually started using linkedin a lot more than i used it in the past, and i actually love it now. i didn't realize with linkedin premium - which you have to pay for, so they're getting revenue from that - you can basically find people in the industry that you want to have possible business synergies with, so it really works well for a professional or business person. everybody knows i'm pretty big on social media. linkedin up here is very expensive. can't look at the p/e, which is about 800. i'm going to be looking to get long it on a pullback. we've seen this happen: google, amazon, they've sold off on earnings just to get snatched right back. $180 is the level to the downside. the at-the-money straddle i always talk about implying it's going to move around $20, so that puts the sto

trader andrew keene of keeneonthemarket.com joins us now from the chicago board options exchange. you're here with a trade on a vacation rental stock. vacation - that's a happy thought, andrew. - yeah, a-w-a-y looks great on the charts. we see a lot of the stock market rolling over to the downside. last week, a trader bought 6,000 a-w-a-y october $35 calls for $1.25. i jumped on this. this was a 3/4- million-dollar bet in a-w-a-y. they have 495,000 rentals online. very, very p/e. with that high p/e comes high growth. also, it's a possible takeover candidate. we saw kayak getting bought out. maybe someone comes after a-w-a-y as well. - is it too late to get into this stock? it's already up 50% for the year... - you know, these internet stocks are high-beta, high- risk, high-reward. that's why i like to trade these through the option market instead of stock. it broke through that $30 level. it had a little trouble getting through $33 last week. recent high is $34.21. i think it goes higher. it's basically the amazon for vacation rentals. only about $75 million in revenue throughout t

joining us now, andrew keene, president of keeneonmarket.com. good morning andrew. - good morning, angie. - let's start with apple. earnings out tuesday. what do you see in the charts for this stock? - we've been talking about this for a while. apple's been stuck in this range. it depends how you want to look at it. you can look at it between $405 and $445. you can expand it out a little bit more - $390 up to that $460 level. right now it's trading at $425. it has shown relative weakness compared to the stock market. s&p 500 futures on all-time highs; apple has been underperforming. $20 at-the-money straddle implying apple is going to go to $405 or $445. i just don't think it's going to move very much. i don't think it's an earnings story right now. it's a new- product-development story. - let's move on to netflix, then. now, the market is implying netflix could have a big move of maybe up to 15%. - yeah, $38 at-the-money straddle. i think netflix is a story, like we've seen in linkedin, we've seen it in google, now we've seen it in microsoft, wh

but first, we begin with trader talk, and that's with andrew keene, president keeneonthemarket.com, who is standing by this morning. good morning to you, andrew. - good morning, angie. - we are watching the summer trade today. what do you anticipate will be some of the big market movers here? - i think the stock market is going to continue to move higher. as we can see, we will get pullbacks at some points, but i think the pullbacks will get bought. one sector i am looking at in particular, the airline stocks: lcc, luv, they all look strong to the upside, and also ual. i think they are going to continue to move higher. - airline stocks tend to move with the economy, and when the economy is down, they fall; when it's better, they rise. is that one of your reasonings here? - yeah, it's like the more the stock market goes higher, everybody is always vested in the stock market. 401k, ira - if you have more money in the bank, you are going to want to travel more. leisure and travel means that airline stocks go higher. - what about tech stocks? - i like certain parts of technology. i like eba

andrew keene, president of keeneonthemarket.com, breaks down the earnings for us this morning. good morning andrew. what is your expectation of how apple will trade today after earnings last night? - we talked about it last week, and i told a lot of my traders in my trading room that i didn't think apple was going to make a big move. it was implying a $20 move on the at-the-money straddle. it was down about $7 yesterday. it looks like it's getting some of that back, but still stuck in this trading range between $420 and $440. i don't think apple is going to move very much. i was telling everybody, lower-than- anticipated movement. - what do you think about panera bread? this one tends to be a mover on earnings. - it actually moved a little bit more than the measure-move target. i sold iron condor, so i sold some put spreads, so i actually get long panera at the recent lows, which is around $172. i'm going to have to revisit that to see if i want to stay in that trade. it sold off pretty hard and then bounced back a little bit. i want to see how it moves today. - domino's pizza i

alan knuckman and andrew keene are ready to go for traders unplugged! today. good morning, and topic 1: econ class - the government has booked about $120 billion in profits from student loans. where are interest rates going next? - that's like saying where the stock market is going next. i think interest rates, for the time being, are going to go higher for now. the 10-year is going to go higher. i think by the end of the year, if they taper, if they don't taper, it's going to come back under 2%. but i think that the immediate time, they are going higher, and the tlt is going lower. - people of gotten really worried - we've seen a 1% rally. but we're talking about all-time, forever lows, and we're still at 2.5%. the cbo is talking about rates in 2016 being at 4%. so we're not talking about a catastrophic rise. but to get to the root of the issue here, i think it's good that the federal government is making a profit off this instead of the private sector, because they are backing the loans. but i think people are getting a little bit too worried about rates ris

andrew keene, president of keeneonmarket.com, joins us from cme group for a closer look at the charts. good morning. - good morning, angie. - so we've already heard from j.p. morgan and wells. what do you see for these next two banks? - if you look at it, wells and j.p. morgan both came out with stellar earnings, but the stocks really didn't participate that much. wells fargo was up about 50¢. it didn't get through it that recent high of $43.20. then j.p. morgan, once again, the stock was only up about 30¢ on friday, couldn't get through that $56 level. it seems like the banks are a little bit tired. it's factored in accordingly. we get earnings from citi today. i'm going to use today's high, and i'm going to short on the closes today, and i'm going to use today's high as my stop. also, j.p. morgan, wells fargo, i think those are both good short set- ups, but on a reward-to-risk set-up. i'm very, very tightly playing these to the short side, using the stops above recent highs. - and here's the dilemma for traders: those bank stocks have had a nice run into earnings, but at the same ti

and there they are, alan knuckman and andrew keene, taking a break from a hectic week to join us from the floor of cme group for traders unplugged. hey guys. topic 1: walking on glass. the banks are strongly opposed to bringing back the section of glass steagall that would separate traditional banking from investment banking. which bank would you buy? - i have been talking about this all year long. my favorite bank: wells fargo. they have the least exposure to europe, they have the most exposure to the mortgage situation in the united states after we see all the housing numbers have been positive. 52-week highs in wells fargo. it's very tough to play this to the short side- - any bank. follow the money. almost every bank, if you look at these earnings, it's all about earnings. it's been blow- out earnings, and it looks like they're going to continue to make money. xlf covers all the financials. that's got 10% more upside. it sold off 8% just a couple weeks ago, and nobody wanted it. now it looks like it's going to make another big move to the upside- - banks have been on fire. - banks

now to head to the cme trading floor for traders unplugged with stock studs alan knuckman and andrew keene. good morning, and topic #1: black out! the ceo of ambercrombie and fitch doesn't want to sell the color black in his stores with his clothes, and he doesn't want his people wearing it either. this is the same guy who doesn't want to sell anything over a size 10. is abercrombie in trouble? - i think that's just a weird story, but looking at abercrombie stock, it's been trading in a channel between $55 and $45. retail has doubled the s&p in the last year, so it's getting a little too rich for me. i look for upside, but you get a pullback. it's gone up 20% in just the last three weeks. - i actually don't think it's that weird. i think it's weird for him to publicly say, but you can keep it under the radar and just not sell black clothes. if you think about it, they have a lot of colorful clothes. their catalog's of little risque as well. - he says that black is too formal. is that too formal? i don't think so. - but, their opinion's right in the line with gap, so they're not really expe

we are calling in andrew keene, president of keene on the market, and alan knuckman of trading advantage to take the fear out of investing. good morning, and people do have a right to be scared, but is now a good time for someone who doesn't have a dime in stocks to get involved with the stock market? - i don't think it's a good time to get involved in the stock market, but if you're currently in the stock market, there's ways of playing options that i can limit my risk involvement. one of my favorite strategies, if i was long stock - let's say apple's trading $430 - i can buy a zero-cost collar. in this situation, i could maybe buy january 2014. i buy the $350 puts, i sell the $500 calls, and i do this for zero premium, so i'm outlaying zero cash for this trade. i'll be stopped on the downside at $350, and i still have all the upside reward up to $500. - alan, why not get in the market? people are calling for 1700 on the s&p 500, for instance. - there's always a good time to get into the market. markets are never good or bad, you just have to be positioned correctly. but it's all about

time to turn up your tvs - joining us now, the dynamic duo of alan knuckman and andrew keene. they are on the floor of cme group and ready to go for traders unplugged. hi guys. - hi angie. - topic #1: stock scaredy-cats. people are fearing getting into the market. what do you make of this? - i think it's a bit of an irrational fear. this market's all about controling risk. as a professional trader, you're right, you're wrong, but you need to control your risk on each trade. people don't look at it that way. people kind of look at it as an all-in type thing which i think is wrong. - i definitely agree with that. if you think of the history and the study of this, if you actually invest money in the stock market on the same day of every month, you're going to have better returns over the long-run than it just going all-in. if you have $10,000 to invest, instead of going all-in on the market highs, put a little bit in every month. you get a better return. - we're not doing surgery here. people aren't dying on the table. it's money. you can always earn more. but control your risk o