chipotle and apple. down 5% off the high and take your chances by being launched. wouldn't do it and the opposite sides. >> not a pretty picture that carter is painting. what's your take on the stock? >> there is a couple of things. obviously it's a richly valued stock. we are trading about 64 times earnings and you can justify that if you see explosive continuous growth going on. this was a company that was growing at a rate that is still good, but if you take a look at the last couple of quarters, growth is starting to decline where a lot of the expectations and analysts are trying to stay in front. the average price is lower. they keep upping the estimates or keep up with the price action. what you need to do is keep up with the fundamentals and is the growth rate justifying the valuation. we are at the upper end at 64 times earnings we have seen. >> bears as well. mike is using a put strategy that we often use, but it's good for that so let's crack open the playbook. one put and sell a lower strike with the same expiration to reduce the cost. you want that to f

don't buy the stock. >> carter, when you you make a comparison and you say chipotle has a bearish chart, does that also mean that you think apple has a bearish chart here? >> meaning they're equally steep, equally crowded, and then apple is now broken. the high was 636 earlier this week and it closed at 605. pot so good. often that's how things come apart. >> we'll see you you later on in the show. meantime, one more stock on stocks versus options. short chipotle is equivalent of eating 20 hjalapenos. the advantages of using options become so much clearer when you use food to illustrate the point as we just did. got a question, send us an e-mail. we'll answer it in our 101 web extra. options action.cnbc.com. you'll also find a recap of all of our trades. and you'll want to check that out. >>> talk about a blockbuster trade. last month, cohen car a bearish trade put cash in their pockets. how did they do it? find out when "options action" returns. time for pump up the volume, the names heating up options trader sizzle index. craving something sweet? this company can hook you up. of course they're also known for their coffee. and

a five-year chart of chipotle and apple. the king broke today. take your chances by being long chipotle. if you don't do it, i would say sell. >> not a very pretty picture carter is painting. what is your picture on the stock fundamentally? >> a couple of things you have to take a look at. a very richly valued stock. 64 times earnings and you can justify that if you see explosive continuous growth. it's growing at a good rate. take a look at the last couple of quarters, growth starting to decline somewhat, where a lot of expectations and analysts trying to stay in front of it, and they lowered the stock and keep up upping their estimates and what you need to do is keep up with the fundamental action, it justifying the high action, we are at the upper end of the valuation range. 64 times the earningsory the past four years. >> put strategy, but good to look. let's crack open the playbook. you buy a lower strike put to lower cost, and you make the most money at the lower strike put. walk us through. >> capture the earnings event and capture a littl

let's move to the apple and chipotle store, hitting all time highs today. should you go simply with what's working? the winning trade is what we want to call it today. a lot of these names continue to go higher. yes, apple may have turned negative here, but the company had $600 billion in market cap. price line was higher. you've got bernstein raising its targets, chipotle, google's price target is increased today. >> obviously, people are moving from the non-cyclicals into the cyclicals. my question is, if you sell this away, where are you going to put it? they continue to hit new highs. so until i see an alternative, stick with it. >> stick with the winners? >> i think so, and i see something like starbuck's that actually trades at a premium valuation, but when you look at the growth products for starbuck's, it makes sense why some of these targets are raised. looking at the big tech, however, i look at apple. i still think it's cheap. i know we hit 644 and we pulled off those levels. i'm still a big believer it's cheap. when you look at big bucks, you loo

and apple. but it also includes steady eddies, chipotle, dollar tree and starbucks have shown stable growth trendsin senior vice president at wedbush securities. you've seen the way markets changed a bit. do you stick with these stock sns. >> well, i think obviously these stocks are the best performing stocks because they're the best performing companies. and these companies have done very, very well. but by virtue of the fact they're best performing stocks, they're very crowded trades. you have a lot of people in these stocks. so if the market really hits the skids, you know, the exit becomes very crowded as well. so i think, yes, they're great companies. but the danger level goes up because so many people own them. >> steve, what do you recommend people do then if they aren't to pile in? >> well, i think there's an awful lot of stocks out there that pay excellent dividends. i think the one thing that really hasn't moved in the rally are a lot of high-dividend paying companies. there are over 650 stocks listed in the u.s. that yield 5% or greater. it's very easy to build a very diversified portfo

so far, apple, starbucks and yesterday's edition was chipotle.rket is embracing true secular growth stories of the '80s and '90s. even in the face of the latest european fiasco. they'll bounce back faster and harder. i'm using household names. using real households. ones you know. ones you've shopped at, been to. the shopping list allows you confidently to buy into weakness. yesterday, during the worst session of the year, it fell 64 cents and with today's rebound, the stock market bounced back more than two points. even in a difficult week, growth still acts like a coiled spring because this is not 2011. i don't want you to buy any of these stocks while they're up. this is a shopping list from the future. the opposite of what you would do. let's go to the next thing on my list and that is cramer fave ross stores, which no one talks about other than me. the king, the king of off price retail. consider it the equivalent of the dollar store of apparel. i shop at dollar tree and love it. i bought $34 worth of candy there including boston baked beans

because stocks have made dramatic runs like apple, like price line, like google, like chipotle and likeucks. there's certainly a lot of folks that are in those high names and that are looking to take some off the table, whether it's for the facebook ipo or whether it's just that they say i'd rather not wait for earnings just as you said, sir. for that exit to come around. but my question to you about starbucks would be. so if you see a pullback, do you see it pulling back to around 52 or so? or do you think the pullback gets worse than that? or is it just a mild pullback? >> 53. so what we did was drew a support line underneath the prior trend and gets you right back to 53. >> you like those round numbers because it's 53 and a nickel basically? >> exactly. >> i'm trying to marry the premises. they've been a flight quality. so is that why the 50-day should be somewhat a support in these names? because people still love them? >> well, you've had pretty significant runs in a lot of the stocks i'm talking about, 25%, 30% runs and i think -- it's hard to see -- >> but the only problem -- i'm

apple. be careful. volatility is very high. you can get the direction right, but the trade wrong. >> there's a lot of hyperbole, comparing ford and chipotle, but if you're long in that chipotle, stay. >> and congratulations on the iron condor. i know you are ecstatic. more "options action" go to our website. we will see you next friday at 5:00 eastern. "money in motion" is up after this break.

apple, starbucks, chipotle, ross stores, celgene, allergen, all stocks which you can confidently buy into weakness because their growth is so robust that they'll bounce back harder andhe rest of the market. with the exception of apple, all of these stocks performed much better than the market today. and many of them were the first to rally when things were ugliest and held up at the end of the day because they have nothing to do with what drove us down. spanish banks, italian bonds, and alleged chinese weakness. allergan and starbucks were up more than a buck. that's pretty incredible, isn't it? chipotle, off the charts. and tonight, i've got one more for to you round out the list. lulu lemon athletica. lulu. the maker of cool yoga inspired apparel. it's one of the fastest growing retailers i know. lululemon has been red hot all year. in part because the company posted fabulous numbers. but also because this is a peter lynch style story. the great magellan fund manager of yore. where people love the stores. they love the products. so they want to buy the stock. as i wish i could every time i duck into my store in summit, new jersey. it's no wonder lululemon rallied

apple had the huge turn to the downside? that day all of the stocks close to 52 week highs fell apart and they're momentum names in the market. chipotlel on the same day turning lower. >> we went through a similar period late last year where momentum fell off a cliff and came back. >> last year was different because there were major concerns. we were talking the prospect of double dip at this time last year and at least this time around it is spain in the distance. that's the only major, we said major concern, and he has a list of major concerns. should we take a break? let's take a break. up next, the best of the best, all-star investor day and we'll talk to be a five-star portfolio manager about his strategy for profits when squawk on the street returns this wednesday morning. e announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] >>> stocks to watch 45 minutes into tr

chipotle. >> buy, buy, buy. i like it. could it go down like apple did in a part beat? keep your powder dry andhen buy, buy, buy. >>> gale in new york. >> caller: this is ben and gale in new york. my son has a question. >> fire away. >> caller: currently invest in exxonmobil and he was wondering if chevron is better? >> chevron is much better. here is what the issue with chevron is. as i said to stephanie, here is the problem with chevron, it doesn't yield enough. i want to wait until it yields 3.5% and pull the trigger. and i got to tell you, not until i get the yield. scott in california. >> caller: how you doing today? >> real good. >> caller: a company like ddd and stratus, a 3-d printing company. any up and coming printing companies to look at long term? >> somebody asked me on twitter about this, i have to do homework and come back to you. sometimes it's like that. and that's the conclusion of the lightning round. ncer ] if you believe the mayan calendar, on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement p

apple's barrel stand a chance? cramer is checking the aisles of avnet's supermarket to find out in his earnings exclusive with its ceo. and, later, hot tamale? chipotle it again. blowing past analyst expectations when it reported, but it's lost some heat recently. can it go from mild to hot again? don't miss cramer's exclusive with chipotle's big enchilada. plus, the costco craze. they changed the way america shops, turning bargains into a billion dollar business. cramer previews their in-depth story with carl quintanilla just ahead. all coming up on "mad money". how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. >>> ever since the beginning of the year tech has been one of the main sectors leading the market higher although it paused in the month of april i think it might -- moving sideways for almost the whole m