dan dan hasnathan has a play it on the cheap he's at the plasma. >> in this time of market volatility a lot of traders are looking for opportunities to play for volatility, for cheap options that have the potential to pay out a lot if they get unexpected movement. we talk about the s&p 500 all day long, only down 3% from the all-time highs some might say it acts relatively well. there's some other pockets of opportunity though in the options market to make money if things kind of go haywire again. it could be away from equities one area that could be interesting is high-yield debt one of the reasons why we spend a lot of time talking about the yield curve inversion, treasuries, but, high-yield debt is levered to companies that basically, you know, have a harder time borrowing, they have worse credits. then if we have some sort of earnings recession, these are companies that might struggle to pay back that debt in those scenarios you will see high-yield indexes turn lower. we have seen that time and time again over the last 10, 15 years or so. let's talk about the hyg, the high-shares, high-yield etf that tracks a basket of high-yield debt here. one of the reasons you might want to buy a put spread in the hyg as we look into the fall if you are expecting greater market volatility is that what are small calls telling us right now? let's think about the russell 2000 in particular it is 15% from the highs, in an earnings recession the last two quarters it has seen year-over-year declines in the russell 2000 so it is something to keep an eye on because we know a lot of the issuance in the debt market is in the high-yield market. the other point is oftentimes if you look back when we see the stock market go down precipitously, you see correlations of it go to one there's no place to high even something like hyg which held you pretty well may go down fast with equities, too. the last point about hyg is options are really cheap i will show you other charts to demonstrate why it is the case here let's think about this this is the one-year chart of the hyg. this looks like nice consolidation. it is important to remember there was a 10% peak to trough decline when the stock market went down 20% in q4. that's telling you that obviously it can be very correlated to sharp drops in the equity market. the other point i want to make is this is large caps, the s&p 500 versus the russell 2000. the small caps, you see this. the s&p is down 3% from the all-time highs late last month the russell 2000 has not made a new high since last year, down about 15%. i think it is reflective of investors' fear about the earnings recession that's going on with small caps okay now let's move over to that last poind point i made this is a 6% volume, implying less than a 1% move on a daily basis here you see though what happened to option prices last fall when the stock market started going down. hyg more than doubled, it almost tripled the price of options there. that is telling the directional option trade can be very cheap in this name here is the other point i want to make. when things started to get dicey in last couple of months, this is gld, the price of options look how they shot up. they were low single digits iv, and, okay, and they shot up to at least 100% above where they were trading because traders were reaching for gold as a hedge against the market volatility the last one, tlt, this is the 20-year treasury etf we know what has been happening there. yields have been going lower, bonds have been going higher, traders have been buying lots of options. the price of options has gone up materially again, option prices were really cheap before that spike. so here is the trade in the hyg. i think you want to look out to november expiration. i think option prices are so cheap if you are looking for risk assets that could go berserk in a market that's gone haywire this is one of them. today when the hyg was trading -- what are we doing here buying a put spread at $87 you look at november expiration, 86.0 it costs about 80 cents, about 1% of the stock price breaks even down to 85.20 about 2% from where the etf was trading today and can make up to 5.20, between 85.20 and $80. why did i choose 80 to down side it is not a great put to sell down there but it was the low from last december it is a level where it may find some support, but to me very simply risking 80 for about 2 1/2 months to possibly make 5.20 if the hyg goes to the lows it was at in december. >> carter. >> it is a great kind of trade to have on in a market like this where you can have a rapid, quick payout that's handsome it is what hedging is all about. i would say this for those of us who are not believers and who are bearish, it is annoying how well the hyg and jnk have held up >> all right dan for that come on over >>> up next, check out shares of home depot hitting a fresh all-time high today. we will tell you why it is great news for one of our traders. live at the market site, much tethonaconrit " gh afr is ♪ ♪♪ ♪♪ ♪♪ to the wait did frowe just win-ners. prouders everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy a new samsung note. click, call or visit a store today. what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to ever