but our dan nathan says e maybe he should be. what's the story here? >> this stock has performed very well after last year being down almost 40%. it's up 10% or more today. there's been rumors about involvement. carl just said it. he gets a little mad. people put it out there that he would take a stake. that's silly. what's going on right here. this is a relatively new company. it's been public for a little more than a year here. people don't like the management. these guys have one of the most unique social media properties on the planet. they have a great brand. let's get involved, maybe. but what would a carl icahn do? push nick tesla out? i think the bigger reason to buy it is for potential of acquisition of the company. it has a $25 billion market cap. facebook paid $22 million for global messaging app whatsapp last year. they announced they had 700 million active users. twitter has 300 million. twitter is not just a mobile messaging app. it is this tremendously interesting and i believe at very early stages, social media platform. and you know wh

that made him a friend of dan nathan and that's why. >> on "options action," it's the rule of the roadyou can make more and that's what dan did with his bearish bet on tesla. dan thought the stock was going down. >> the 50 day moving average is about to cross below the 200 day moving average. that's what some technicians call the death cross. >> no! >> but just going short, that could be even scarier. after all any stock can technically rise forever meaning unlimited losses. so to define his risk dan instead bought the february 210 point for $11. but hold had on paying 11 bucks just to bet against tesla -- so to cut costs dan then sold not one but two february 180 strike puts for a total of $7. now between the $11 he's paying and the $7 he's taking in dan is paying $4 for the trade. that means that he only needs tesla shares to fall $4 below the higher strike put to make money or below 206 by february expiration. but we have a problem. you see because dan sold more puts than he bought he could be subject to serious losses if tesla falls further than he expected so to protect himself he

tim seymour and peter najarian are our bulls and dan nathan and guy adami are the bears. get ready and take our places in the arena. all getting up here. >> all getting up. >> logon to twitter right now to vote for who you think is winning the fight. use #bulls for tim and pete and #bears for dan and guy. putting three minute on the clock for this epic tag team edition of the street fight so let's kick it off with the bulls. pete, you're up. >> it's fairly simple. richard anderson on delta call talked about significant opportunity. 2015, significant opportunity. how about the fact that they have put to rest so much of their debt. they bought back $10 billion in the last five years, reducing it down to 7.3 billion, and the cash flows, over $3 billion. this is an airline that's moving higher. i think all the airlines when you look at it right now, there's the big three, the big three are killing it and they have learned to have discipline. that's why the airlines are going higher. >> yeah. you know, i would say that they really haven't learned discipline. they have been ver

dan nathan? >> despite rates never going up again, i still think the xlu utilities is the most expensive sector in the entire market. i'd sell it. >> brian kelly is in. >> you got believe and buy gopro at these levels. >> interesting. karen finerman? >> cvs, they have done a fantastic job with their business. health care space is great right now. and i think it has this gravitational pull towards 100. >> google has been a terrible performer as of late. today the market got smacked around. this one was positive. look at this 490 level. if it holds that level, i think it's still bible. >> all right. i'm melissa lee. thank you so much for watching. see you back here again tomorrow at 5:00 for more "fast money." in the meantime, don't go anywhere. "mad money" with jim cramer starts right now. right now. >>> my mission is simple, to make you money. i am here to level the playing field for all investors. there is always more. i promise to help you find it. "mad money" starts now. hey i am cramer. welco

that would be dan nathan. he breaks down a trade next. t s. you have made my life special by being apart of it. (everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything, for all your help. through all life's milestones, our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow. chase. so you can. >>> incredible bond rally continues as the tlt bond etf hit another record high. one big trader thinks it's time to look the other way. >> yeah, one big trader is disagreeing. but here's the thing. options volume ran three times average daily volume. and there was a massive trade. a big roll actually. a bearish roll, etf was 133.65, trader sold 40,000 of the puts to close and bought $40,000 of the february 128 puts paying 76 cents. that's $3 million in premium. and the break eve

that made him a friend of our own dan nathan. here's why. >> it's the rule of the road. risk less to make more. that's what dan did with his bet on tesla. dan thought the stock was going down. >> the 50 day moving average is about to cross below two day moving average. that's what technicians call the death crossing. >> no. >> just going short, that could be even scarier. any stock can tech nick cli rise forever meaning no losses. dan bought it for $11. hold on. paying $11 to bet against tesla? to cut cost dan sold two 180 strike puts for total of $7. now for the $11 he's paying and $7 he's taking in, he's only paying $4 for the trade and needs tesla to pay $4 below to make money or below $206 by february expiration. we have a problem. you see, dan sold more puts than he bought. he could be subject to serious losses if tesla falls further than he expects top. protect himself, dan bought a lower strike put, february 150 strike put for a buck and created his put butterfly. since he's shelling out another buck, he's paying total of $5. he'll see profits so long as tesla fall

but our dan nathan says that maybe he should be. so dan, what's the story here? >> here's the thing. this stock has actually performed very well after last year being down 40%. it's up 10% or more this year. had a great day today. there's been a lot of rumors. carl just said it right there. he says he gets a little mad. some people put it out there he took a stake. that's silly, right? what's going on right here, this is a relatively new company. it's only been public for a little more than a year here. people don't like the management. well, fine. these guys actually have one of the most unique social media properties on the planet. they have a great brand and there's a whole host of things that are going to go on there. could activists get involved? maybe. but what would carl icahn do? i think the bigger reason to buy it is for acquisition of the company. it's got a $25 billion market cap. when you think about facebook paid $22 million for whats app last year. they're growing like crazy. they announced they have 700 million monthly active users. twitter has 300

. >> still ahead, dan nathan has one stock in store for a big move following earning reports tomorrowreveal after this break. ♪ first impressions are important. you've got to make every second count. banking designed for the way you live your life. so you can welcome your family home... for the first time. chase. so you can. take aand... exhale...in... aflac! and a gentle wavelike motion... ahhh-ahhhhhh. liberate your spine... ahhh-ahhhhhh...aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. see why speed matters, at aflac.com. >>> welcome back. we're live at our new home at the nasdaq market site, but on the second floor and there are so many people who have commented very nice things about our new digs. but the number one question that we're getting, who are the people back there, the people back there, market intelligence desk here hard at work looking at individual stocks. so there is your answer. >> wave. is this this is a live shot. actual people. >> micron reporting earnings tomor

it is dan nathan's turn over at the smart board. >> yeah, it's twitter.lier today, i bought it about 37 1/2. it actually had a big run today. but a lot of the excitement in 2015 so far is talking about activists and takeover and a lot of different sort of rumors here. that's unfounded. my take very simply is this, as a public company with a $25 billion market cap juxtaposed to facebook's acquisition for $22 billion, twitter is a unique social media property and possibly a messaging application. i think there's massive scarcity value that's not being appreciated in the current price. i think google should buy these guys, no social media strategy, no messaging strategy, and they lack a certain realtime search strategy right now. so to me, this kind of fits a lot of things that google should be using their $65 billion in cash for. >> if google buys twitter, that would be upside. if an activist somehow stirs things up at all, that could be upside. what's the downside? >> well, the downside is this is a company that continues not to are grow fast enough. scale

>> dan nathan? >> ecb qe, i think it's great for them. long run in our own treasuries over here. i think you see a moderation in demand. i'm long a put spread in the tlt out to march. >> karen finerman? >> you or i, i want to add one thing that i thought was interesting. this kevin johnson being named a as the coo when he was ceo of juniper, why do you take on the coo role when you were the ceo. could he be a schultz replacement? >> that's in the fine print. >> hidden in the final trade. >> a twofer. est esterline technologies. a defense stock we don't talk about. >> the first time you've ever mentioned the stock -- >> a first for everything. like finerman's fine print in the finaltrade. >> "mad money" begins now. >>> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. >>> hey, i'm cramer! welcome to "mad money," welcome to cramerica. i'm trying to help you save some money here. my job is not just

dan nathan brian stutland karen finerman and steven barrasso. >> prices could go down to 30. >> easilyes in the way i'm thinking it will. >> now with oil getting closer to 40 bucks, he'll tell us where he thinks the market is going next. first to our top story, massive reverse until the market. the dow seeing a 425 point swing but the dow and s&p

. >> dan nathan to be clear. we'll we'll see you on "fast money" at 5:00. also be talking to dennis gartman. we'll have more ahead on the expectations. >>> president obama set toim pose new taxes on wall street and wealthy americans tonight during his state of the union address. that includes a lot of cnbc viewers. how should investors react? we'll take a closer look at what the president wants to do and also are lower gas prices impacting consumer behavior? rick harrison of "pawn stars" here to tell us what he's seeing at his shop later on "the closing bell." you're watching cnbc, first in business worldwide. aflac! and a gentle wavelike motion... ahhh-ahhhhhh. liberate your spine... ahhh-ahhhhhh...aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. see why speed matters, at aflac.com. have you heard of the new dialing procedure for for the 415 and 628 area codes? no what is it? starting february 21, 2015 if you have a 415 or 628 number you'll need to dial...

nathan asks us, what do you you think about a straddle for google's earnings this upcoming week? >> dan, all right, my brother, let's talk about this. they have the money straddle for next week is about $24. that's a really tough way to make a living, buying that and hoping for a 4.5% move. that's not how i want to play it. if you have a drexel bias, you look to it. if you see this back in the 200, take profits. >> it has not been a performing stock for the past year. can you get a netflix type pop on its earnings. >> recently, it has been pretty good. >> we would stay away. >> frank asks, what makes options cheap or expensive? that's perfect for mike. >> the simple way to think about this is take a look at how far out the options are and how much that straddle and option costs you and compare it to how much that stock has moved over a comparable period of time. stocks like johnson&johnson don't move around, 7% in three months. other stocks are more volatile. that's how you figure it out. does it seem like it makes sense. other more complicated ways to think about t we are not going to