this is "options action" live from the nasdaq site on the desk, mike khouw, carter worth, and bonawyn eisen another pivotal week for earns, so we're devoting a second options friday to them we are talking target, up 10% but sliding from recent highs. carter, what do the chart say? >> two ways to look at target. of course on its own and as an absolute chart as bearish to bullish reversal if you look at that, walmart is the favorite and target is the less desired or wanted on wall street we're playing the opposite we think target is actually going to do better on its earnings result than walmart did on it. >> one of the reasons why is they're more exposed to consumer discretionary than staples mike >> this is an interesting situation, because target doesn't look terribly cheap on a trailing basis this is a name that's moved sharply on the last several earnings they have had they have had two double digit moves out of the last three earnings they reported implying an 8.5% move right now. this is a difficult situation. i would not be inclined to go out and purchase to stock right here but

but this is not cheap here. >> do you agree, bonawyn >> i do. there is a lot i like about this business i'm going to try to find a glimmer of hope here i like the consumables, their expansion into the health care business which you're seeing a lot of other companies do. i think they have some things going right, but i can't catch a falling knife and that chart is ugly until that starts to kind of turn i'd rather play with the trend than against the trend. >> rather not again. for everything op"options actio, check out our website and our newsletter >>> plus, calling on "options action" fans, reach into your pocket, grab your phone and tweet us your question at "options action. if it's nice, we'll answer it on air, when "options action" returns. >> announcer: "options action" is sponsored by thinkorswim, by td ameritrade. >>> welcome back to "options action" on a friday. as we have been mentioning, this coming week is another big one for consumer related quarterly results. last week walmart as the largest grocer in the u.s. set the stage with the

bonawyn? >> similar to jeff's, this is a short-term fade.erms of the rotation out of some of these staples into more high beta type names, and i'm curious to see what the economics look like. in the short-term, i'm fading it, but it's still a name i like long-term. >> my kids love the cheetos. jeff mills >> going to give it benefit of the doubt. holding the trend line, but barely continuing to make higher highs and lower lows as bonawyn, at this time defensive nature of the business comes in later this year. >> well done coming up later on the show, ryan cohen is at it again. the company that's in his sights and what he might be able to do for it and later on "options action." a fairy tale for disney. question mark. we're laying out a trade that's looking for upside in the magic kingdom stock. you're watching "fast money" live right here in times square in new york city we'll be right back after this >>> all right, welcome back to "fast money. check out shares of nordstrom, up 25% topping the tape at game stop chairman -- yeah, that one, che

we like the service name, slumberger, haliburton, type stocks. >> bonawyn, how about you?don't think i'm quite as bearish on energy. i understand bills, destruction and the economy. i will say there's seemingly a floor to crude whether it should or should not be the case, you are seeing names trade in lock step with the understood lying commodity if you look at the capital discipline of the companies they're much better run. i like the options trade, your net collecting premium and it's risk contained but i'm not quite as bearish. >> mike, carter raised an interesting distinction between the integrated and services. you had your druthers, which would you pick >> i don't have to you can the about initiating one, because i have one we're along marathon, haliburton, unfortunately were long devin just to be fair on the bearish conversation, we are net long energy name, so it wouldn't be reasonable to call me completely bearish, i just don't see a lot of near term upside. >>> up next, an update on a hospitality stk isocwe dcussed last week. "options action" back in two thinkors

i'm a seller >> bonawyn >> i'm not pumped about the s&p exposure, and if you look at the price actionich i think carter was alluding to, you see tech really start to catch a bid earlier in the year. price action has reveersed sharply from that $450 level >>> yeti reporting results after the bell thursday. mike, how are you playing this one? >> yeah, so yeti, this is one of the holly index names. much to my chagrin, everybody in my house wants to use yeti tumblers instead of glasses. and she doesn't like to put them this the dishwasher, that drives me nuts. what's not been great historically is the price of the stocks but they have been growing nicely the stock prices come in, this thing is trading in the mid teens in term of forward eps, so this is beginning to look attractive now, this is a name that moves around a decent bit on earnings and definitely did after the last one you'll notice if you take a look it got a huge pop after mid november, but the stock is at the same price options are expensive. here i like using a call spread risk reversal. the idea here is that if the stock d

. >>> so, what do you think of the housing trade, bonawyn >> i think they can't catch a break.ade a meaningful rally from the lows here and we around and get rates that start to not only come down but start to stabilize and that's what it is these companies have the hedge when you see a bit of tumult in the commercial real estate market and looking at home builders saying, listen, this might be a leading indicator, a bright spot where there might be upside and i think this might just be -- might be the qatarry in the coal mine that leads us to see a pause in these housing-related names in the short term. >> when you think about -- when i thought about lumber prices i thought go what international paper had on their earnings call trying to restock their boxes so it's all sort of this little ecosystem we're seeing. >> inflation is starting to rear its ugly head again and, you know, we tried to -- one of the things we did i think in the fall is the simplicity in the housing trade and i know it's frustrating but if rates are going to go lower which they did, then almost by definiti

i agree with bonawyn if you think you run a financial power house and he does, they do, it makes sense you would look at what others are doing in financial services and if you think you have the where with all to go into that space. i can see why they might think that's the case. it is interesting that you would bring talent in that has specific expertise to consumer banking and not heed their advice i mean, the credit card business, infinity credit cards in particular, that seems to be where the money is made. i actually got one of those goldman credit cards and a lot of people around here have seems like it's a good deal for the consumer and ifthat's true maybe it's not as good for the relative participants and apple strikes a hard bargain >> what's your take on solomon we led with goldman sachs about a month ago. >> fguy is the alum. >> are david solomon's days numbered what do you think? >> i'll back into it for a second i think kadavid's done a tremendous job i think the stock was either side of 200. the stock's below 400 now. it's effectively doubled in his tenure so just on the