that the stock goes a lot higher or out of the money bets underneath the market that would be a bet but the stock is going to go down now people profit very very quickly on those panic bets to the downside you need look no further than apple recently as it fell from seven hundred dollars about two weeks ago all the way down to six hundred twenty dollars an eighty dollars price drop just in the last two weeks that was of course one of those events that isn't really a known event there was you know some talk about factory closures and things like that and maybe the mapping function didn't work so well but basically when that snow ball gets rolling downhill it goes down faster then of course it goes up and that's why those put sions the bet that the stock price will decline are so popular in bear markets right johnny mentioned that once the ball starts rolling it starts to gather velocity and speed quite quickly because there are more options trading based on a company's stock then there is stock in existence so if apple or google might have a hundred are a half a billion shares outsta

to me, i would probably wait to make the bullish bet. i will say one thing, the october weeklies are really up. call calendars could be a way to go. it's selling and buying nove. because it's 20 points under october. that could be one thing to consider also. >> i think the important thing to take away here. it's had a big run. mike is not getting greedy. it reduces the whole thing by almost 40%. that makes all the sense in the world. >> you did sound reluctant. you wouldn't want to buy the stock so you would do this. but at the end of the day, do you feel bullish about e-bay? >> i would be bullish enough -- that i would be willing to make a call spread to make that bet. to the point dan was making, it's not only rich relative to itself. it trades around 19 times earnings. the only reason that's expanded is because we've seen larger top line revenue growth. there are analysts that forecast it will decline in 18 months. that's the give and take we're trying to work with. >> let's look at the stocks versus options. want to buy ebay, pretty

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dan made a bullish bet on wells fargo but the stock didn't go far enough. can dan find a way to make bank? find out when "options action" returns. >>> time for pump up the volume. this company is the world's biggest book retailer and will week the stock turned a page jumpi jumpi jumpi jumping 8.2%. investors are thinking bookworms everywhere will be hooked on the company's new product. investorss everywhere will be hooked on the company's new product. like a high-speed train.g's and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account. >>> where are options traders pumping up the volume this week? barnes and noble. >> barnes and noble calls are busy this week. >> we saw 8% thanks to good news for their nook e-reader. people think that the

i bet you will grow up to be a mathematician. i will give you my address you will have to send me your first paycheck because i taught you this. at this point we would like to thank you very much for coming. if you have any questions. i don't know if we want to open it you will for questions. may be just a few? okay. yes. what's your question? >> how do we get in this program? that is a good question. >> it's an interesting question because the answer with the 3 of us is the same. what i want to point out i look like i might be from india when i talk i sound like i'm from america. my parents are from india but i was born in america and i started this dance when i was 18. i was not a baby e. both charlotte and an drea did as well. charlotte at 15 years and joe airna and i 15 years. that's how we got in this program. we practiced very hard. very, very hard we practiced everyday and we have been been in india practicing 8 times where our teacher is from. yes. >> yes. >> well there are similarities all of southeast asia. we performed

you bet.ere with an all-star -- i'm calling it all-star trifecta. we have senator alan simpson. erskine bowles and lloyd blankfein of goldman sachs. we'll talk deficit, go inside washington and inside wall street for just about as long as they're willing to stay. gentlemen, thanks for joining us. erskine, you made a comment before we came on that said they didn't talk about the fiscal cliff or social security in the presidential debate. what does that tell you about the state of discussion about the issue of the deficit and the entitlement problems in this country? >> people are never going to understand how critical this particular time in history is. we have $7.7 trillion worth of economic events that are going to hit america in the gut in december. and in washington, they're doing nothing about it. nothing about it. we should be asking these guys running for president and every guy running for congress, what are you going to do? what kind of steps are you going to take? you know, if we do n

i bet it's a lovely place to occupy.lause] >> here is the thing and this is the new thing about the super rich, they are global. and in the 20th century the american superrich needed the american middle class to have enough money to buy the stuff the super rich were creating. this is the famous henry ford theory. you can have your stuff purchased by the indian middle class, the chinese middle class and you don't rely so much on a prosperous middle class. i think this is politcally a serious problem and part of the reason we're seeing such polarization in the american debate. >> stephen: the sub title is the rise of global superrich and the fall of everyone else. >> yes. >> stephen: if that is true, shouldn't i hitch a ride with the super rich? or at least just do everything i can to get up in the super rich. i don't want to fall. shouldn't i cut the dead weight of friends and family and get up there with the super rich and say i've got mind jack and watch them tumble down? >> this is the tragedy of america today. if all

carter thought the shares looked like a sure bet. better go all in mike thought on lgs.uying 100 shares of the volatile stock that leaves him more naked than prince harry after a billiards game. so to define his risk 44 strike call for $1.65. now mike has a right to buy las vegas sands stock at that call strike price or $44 at expiration. but in order to make money on the trade, mike needs the stock to rise above that call strike price by more than 165 he spent on the trade or in this case above 45.65. anything below that level and mike will see losses by expiration. but now instead of spending more than 4 grand to buy 100 shares, mike spent just $165 to buy that call. that's the most he could lose in the trade, but it gets even better. why's that? because if shares do rise, that call will increase in value faster than stock meaning more money in mike's pocket. and since the time of the trade, lvs has surged 6%, making khouw and carter winners. now these guys are living the high lives, partying with prettyish royalty until the break of dawn, but, hey, fellows, before you

i want to bet on those three into the close. google, microsoft, as well as capital one, i think you buy the market. and a couple other things to think about. if we're in an uptrend and valuations are low, i think this gives us more room. i don't think nasdaq will be the leader for the big sector, but i think s&p goes higher, brings us back up to a yearly high in the nasdaq. >> anthony? >> yeah, rich, a lot of support in these areas and a couple of analysts have downgraded the google and microsoft earnings estimates, cut them over the last few days. how do you think this is going to play out? >> well, listen, there's both sides of that card. analysts will take either side. i'm betting on the long side because i think the whole market's going to get an uplift. the nasdaq has been sold off about 5%. haven't broken any key levels, 100-day moving average is intact, the two-day is intact. i'm buying it before the close. >> what are the levels? >> well, listen, we put this out on the twitter this morning. nasdaq at 2,762 which i'm alre

he's also the author of the critically acclaimed book bet the farm food stopped being who joins me now from our new york studios frederick welcome. hi tom how are you find great to have you with us your book bet the farm is filled with stories as well as information about you know in this conference or going what what got you into this. well i'm a journalist and i had been really following the food story for quite some time and i thought i had a pretty simple question after all these articles which was how could an expensive delicious unhealthy food be available for everybody on earth and i thought i had a pretty simple answer tom i thought it was takeout pizza and. i am joking yes but i i thought maybe a little tongue in cheek i should look at takeout pizza because actually tom takeout pizza is a thirty six billion dollar industry people all over the world eat pizza and love pizza in russia and in malaysia and so i thought maybe if i start here this is going to lead me on my path to figuring out why actually there are almost a billion hungry people on earth right and and that's how i

i bet you tell stories. did you tell a story today? >> yeah, i bet you did you went up to our friend and said, did you see that? your friend said, no, no he didn't. right? that's a story. so, i will tell you a story. in india, here we have super heroes like, tell me a hero. >> super man. we have super heroes in india. krishna. lifts mountains and throws them to the ocean to create bridges. i will tell you the story about a super hero. krishna as a little boy in the village where the trees blow and the water flows and the birds fly and the grass grows, in this village there are cows. and people and they go to the river and they go to get their water. and they go to the river and what do they see? an evil demon is polluting the river. callia. and they can't get water because it's killing the cows and the people. so, they go to krishna and say, please, do something about this this is not good. he says, he thinks about it and says, okay. he takes his friends to the river to play. they play ball. they play with the ball and then by accident

he think technology is overheated, it can bet against technology. just had someone bearish on one terry and stocks and wrong, but also went long on others, so in one single fund you can make these types of bats >> you can, and the duties you can make money in an up market and you can also make money in a down market. you can have this fund increase in value on a down day in the market, and a lot of investors like a hedge their portfolios of the play like that. liz: what is the big mistake that investors will most likely make between now and the election? >> i think investors tend to do whatever anyone else is doing. for example, if there is momentum on the upside investors tend to chased those returns and that with other investors. liz: they have not up until now. >> that is true. a lot of investors are betting against it, but we are starting to see signs that they chased the rally and feel like they're missing out. now, as soon as you see that happen we start to get a little bit nervous. you know, you don't want to ever do what everybody else is do

are they making a long bet on ohio? >> well, i think they're probably making a correct bet on ohio. ohio is 18 electoral votes are important to them. if i was them, i would be going up on the philadelphia and detroit media markets or at least being serious consideration it to because those get the bulk of the affluent suburbs in the states. you felt -- i'd be going up with ads geared to that population. >> all right. michael, thanks thanks so much e being here. still ahead. billions of dollars in defense cuts set to kick in come january. president obama said on monday the so-called sequester will not happen and wasn't his idea in the first place. we'll check the facts and tell you why it could matter in some key states on election day. [ male announcer ] you like who you are... and you learned something along the way. this is the age of knowing what you're made of. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may

. >> how much you want to bet, it doesn't work? >> $10,000 bet? >>> on the eve of election day in ohio, they are sleeping overnight at polling places. we'll go live to cleveland where nina turner is camping out for early voting. >>> and house majority leader eric cantor is fighting for his political life in his own district. wayne powell will join me live following tonight's big debate. >>> good evening, americans. good to have you with us. republicans are hoping for a game changer in the next few days, but romney's path to victory is starting to disappear. president obama is ahead in all of the vital swing states needed for victory. if the election were held today an associated press analysis shows president obama would win at least 271 electoral votes. 270 votes wins the presidency. the romney campaign, no doubt, is struggling to, say the least. romney's own running mate was forced to admit how their campaign has stumbled. >> so, yeah, we have had some missteps, but at the end of the day, the choice is really clear. we're giving people a clear c

online betting prediction markets, like ireland's intrade, which takes bets from americans, and england's betfair, which doesnt, have made obama the strong favorite for months. the lone domestic and entirely legal betting haven, the iowa electronic maets at the university of iowa. ever frugal, we asked hari srinivasan, our man in the midwest-- at least last week-- to drop in. >> sreenivasan: this is the entire iowa electronic market? >> this is our server room right here. >> sreenivasan: so the entire prediction markets right here? >> in that little box. >> reporter: granted, a visual letdown but this is what electronic betting looks like everywhere. in iowa, a machine through which 1600 people are constantly betting, with a $500 limit per punter. the odds on iem, according to its proprietor, joyce berg? >> right now, the markets are favoring obama. if you look at the winner-take- all market, that market is showing that our traders believe there's an 80% chance obama will get more than 50% of the popular vote. >> reporter: that was before the first presidential debate, however. the odds a

it might be the best bet. cate caugiran, cbs 5. >> if you are looking for gear, photo gallery and world series food guide, go to giants cbssf.com/giants. >>> hayward police have surrounded a neighborhood in search for suspects who took off after a high-speed chase near south gate and holly hill. two schools in the area have been placed on lockdown. those schools south gate elementary school and martin luther king middle school. >>> and in san francisco's inner sunset district police are searching for three suspects who got away after a burglary today. this happened near 14th avenue around 9:00. the suspects took off in a silver truck later found crashed near ucsf hospital. no word of any arrests. >>> in campaign 2012 coverage, a u.s. senate candidate is trying to set the record straight about his comments on rape. indiana republican richard mourdock says today his words are being taken out of context. in a debate last night mourdock was talking about abortion and how he feels it should only be allowed if it's

i believe there are great things that wall street does, helping companies merge, but betting againsthem without telling them that and frankly wall street banks are making 75% of their money in trading. i think you need to bring the pendulum back. i'd like to be a voice to shine transparency on what is wrong and try to pick it. >> let's be transparent for your own story. you are denied a bonus on toop of your several hundred thousand dollar salary. when so many people like the goldman clients with retirements and pension funds you cite being concerned about are struggling to make ends meet how does that align with your personal values? >> there's a huge compensation bubble in wall street. certainly i was making a lot of money and i was grateful for it. if i was concerned about enriching myself what i would have done is stayed at goldman sachs or left quiet limit i would have gone to jpmorgan, morgan stanley or deutsche bank. i left because what i saw around me conflicted with what the firm was saying by saying we care about reputation and clients. >> you say they are doing important t

i do not think they can win in 2020 without the support but they are betting they can keep enough of those people home in 2012 to win the white house. generous as you can in answering this question. make the best case that you can for the republican argument that there is voter fraud run fampant in this country. if that is the argument, what is the best case that can be made for the notion of these laws going on the books to stop the voter fraud in its tracks? >> first off, i have to say before i make the republican argument, that it is a difficult argument to make because there has been no evidence of widespread voter fraud plaguing american elections. the budget ministration did a major investigation from 2002- 2007 and they did not prosecute a single person for impersonating another voter, the type of fraud that the voter i.d. law would stop. you are 39 times more likely to be hit by lightning than you are to impersonate another broker at the polls. that said, the gop argument would be that there was large- scale voter fraud by groups like acorn in 2008, that that led to the illeg

i bet on american workers i bet on american manufacturing.because that bet has paid off for ohio and for america. in a big way. >> jennifer: yes! president obama. in dayton, ohio, today he made his bet that he saved jobs and coming to us tonight is a man who knows a lot about the american auto industry and fighting for its survival under both the bush and the obama administration congressman gary peters representing the place where chrysler is headquartered. he comes to us from the heart of the auto industry, detroit michigan. gary peters, welcome back inside "the war room." by the way go, tigers! >> absolutely, governor. great to be with you once again. >> jennifer: all right. so you were there when the meltdown happened. >> yes. >> jennifer: i'm sure you heard what mitt romney said last night at the debate. tell us was private sector financing available? >> absolutely not. i tell you i wanted to jump out of my chair when i heard that. it grinds me so much. as you mentioned in the earlier segment, it wasn't there. wall street was frozen. fin

i bet they -- >> my father, actually -- no. >> i bet your ancestors -- >> to clean toilets and to repairm. >> to be rewarded for hard work and merit for the first time in his life. that's whht markets allow us to do. it's a great equalizer. i work harder, i innovate, i'm rewarded. that doesn't happen in other countries. th's why markets are not about eed. they are about a better life through earned success. >> t poor, i'm told, are left behind. paulrugman talking about paul ryan's budget saying he's explicitly trying to make life hard for the poor. >> yeah, that's completely false. i'll tell you why. >> your argument about dependency, but you want to cut off programs and make the poor suffer? >> actually, i don't. what i want to do is for the truly poor of the country, we need woo things. relief and opportunity. if you want to guarantee relief to the most indigital jane members of the society, we will be inconvenienced by a debt crisis in the country if we don' change course, the poor lose everything. that's catastrophic and immoral. >> that's w they need more programs. >>e assumes like

. >> obama: when governor romney said that we should let we're going to bet on american workers americandustry, and it has come surging back. >> romney: that's precisely what i recommended and what happened. >> obama: candy, what governor romney said simply isn't true. he wanted to take them into bankruptcy without providing them any way to stay open, and we would have lost a million jobs. >> eliot: the president has hammered romney on the centerpiece of his campaign, his plan to cut taxes across the board to restore the economy. >> obama: we haven't heard from the governor any specifics beyond big bird and eliminating funding for planned parenthood in terms of how he pays for that. >> eliot: romney is taking his lumps on the issue of equal pay for women. last night the former massachusetts governor said he wanted women hired for top positions before he took office. >> romney: we could a took a concerted effort to find women who had the backgrounds to be qualified to be members of our cabinet. i went to a number women's groups can you help us find folks, and they brought us binders full

a very cheap way to press bearish bets.stock doesn't announce their own earnings. >> you were watching. >> i still was. i do heart it. they made fairly positive comments about the global crops or in their sense that we had the drought. you are starting to see china perhaps have a problem with corn. i like monsanto here. i think they said really great things about corn. if you don't want monsanto go with corn. >>> next trade gold prices hit a new 2012 high on monday and up 10% in the past three months. is now the time to take profits. let's bring in founder and ceo of the management. is this a technical call on your part? >> there are three reasons why i sold half of my gold position. you have to book profits. in the wake of chicago fed president charles evans extremely dubbish comments we saw it hit the high. only went up $3. that was disappointing. most importantly i am seeing the presidential debate tonight. one of three debates. if mitt romney can land a single punch you will see gold go lower. i'm looking to buy it back

anyone want to take the bet?axes for the 1%, the wealthiest 1% of households in a mitt romney administration will go down. >> i'm not sure of that. so, i mean, i think some of the things we've talked about, some of the things you talked about in your segment before, it's all about deductions limiting things versus income tax rates. there are a lot of things you can do with deductions. they missed a few things. there are other deductions that the tpc and gayle and other co authors that study will admit. you can get to income neutrality. >> you can get there though with get with some real political costs which is going after deductions that people really care about, right? i mean, you can do things to charitable deductions. in fact, the president in his first budget proposed capping charitable deductions. what happened was the entire world of universities, catholic charities, everyone else freaked the heck out and it got killed, right? you can go after the mortgage deduction. good luck. go around america and tell e

. >> i bet she speaks japanese better than i do. my kids might not me. >> when i had the gun i knew there was a [inaudible] and i started writing down things and i thought in my mind's eye, i think it looks like this. and it would be like that i had a small village in mind. there was a part in time i thought, i could go back to japan and go there and see how it looked. i had in the book and in my heart what i thought it was, i almost knew that if i had gone back it wouldn't be the same. so i made the conscious choice of not going. now that you tell me this i'm thankful i didn't i think it would have destroyed what i created in my head. i thought places are best when they are imagined. i hesitated naming it after a place where my mom said what did exist. i'm glad i didn't go back. making that conscious choice would have changed had i gone back would have changed the direction of the book a lot. >> when i saw it it was so different than how an imagined from reading your books. >> does that teach you never to look up things. always lis