. >> thanks, dom dom chu in the newsroom. >>> dom mentioned home depot down 8% from itsrecent high. a way to make money if the stock goes up down or nowhere at all. is it magic? no it's options mike breaks it down with the call to action. >> earnings coming up. when we have catalyst-like earnings, elevates premiums. looking at call spread, one, take advantage of that and look to sell that expensive near-term option premium, and we want to take advantage of the fact the longer dated options probably aren't at elevated turns out, may options trading at 30% implied volatility and later, 20% volatility. selling options find the longer dated ones limits our risk a quick look at home depot stock. pointed out, a little over a 3% move in either direction off earnings it's interesting we don't usually get really big moves much more than that. we'll try to make a play staying somewhere within that range, and the trade specifically we're looking at is the may-september 190 call spread. going to sell the may 190 calls, collect $3.45. buy the september for $9.55, net debit of $6.10 and really th

dom chu joins us now he looks at what tech stocks have been left for dead here, dom. >> they've takene dips they wonder whether or not investors are stepping in to buy some of these stocks because they've taken a turn for their favor. s&p 35500, a handful of them ha hit their 52-week or worse lows just this year in 2018 and a handful of those have gained at least 10% since those recent dip lows that buying could be short covering or fundamental value dip buying let's take a look at these names. there's a theme to some of the ones they've gained the most skyworks solutions, right-hand side, that dip we saw has moved up by 16, 17% just since those lows we've seen earlier this year another one to take a look at as well is also the chips face and that's qualcomm. as you can see here on the right-hand side of our screen, have rallied back 20, 25% since those lows we've seen. one more to give you the overall scope and the size of some of these moves, advance microdevices amd shares have been volatile over the course of 12 months and a staggering near 50% rally off those lows as we talk abou

dom. dom chu. >>> let's bring in rebecca patterson. rebecca says the u.s. is the best place to be right now rebecca, was this also prior to what was going on in italy >> yeah. so we've been overweight at the u.s. for two reasons right now it's because of the tidal wave of stimulus coming at u.s. companies and the economy which we think is largely but not necessarily fully priced and then there is the defensive element, which is what domting at what we found over the last few decades, is when you have market panic, even if the u.s. causes the panic, the u.s. tends to outperform some of that is americans bringing money home in times of stress and we bring a lot of money. and it's the capital repatriation lifts the dollar. if you look at currency in total return, that stronger dollar plus liquidity of the u.s. market tends to make it a better performer. even if it's '08 where it was the u.s. that led the charge >> in terms of the tax reform not being fully priced are, there specific sectors that you're looking at that you think really are not reflecting? when do you expect that? is that a third quarter story? a fourth quarter story >> i should be clear and i probably misspoke. it's not just the tax reform it's also the february spending package. so the $300 billion that is going into the economy over the next two years, a lot of that goes into government agencies. and so you think about it. if department of defense or d

. >> dom, thank you. dom chu at the wall here how do you factor this in? particularly when it comes to multinationals so many people come on the show, on shows across the network saying they love technology stocks, they love the growth in technology stocks but not acknowledging a lot of the revenues come from abroad, and they could be hit by a higher dollar >> they will be hit, but there's two things a, there are always offsets. so show me a negative thing that could in some way impact the market and i'll show you a way where something else happens as a result of that that leads to some added benefit i can give you a million examples but we don't have time. i think the bigger picture, yeah, we should be concerned with these things, but there will always be something to be concerned with think about emerging markets that you just talked about, the rising dollar. of course, two thirds of the debt in emerging markets is denominated in dollars if you hurt their currency and strengthen the currency they have to pay their debts back in, obviously, no one is goin

there is one other group that seems to be seeing a retail like revival let's get to dom chu for the details. >> hi dom. >> melissa, it is not just macy's that seems to risen like a phoenix from the ash and by the way, it is helping to drive the retail xrt to a fourth straight day of gains. macy's surged higher from multi year lows. a lot of retailers have been hammered and the big part of the story is amaz amazon. you may be able to make the argument that something is similar and still is happening in the media space as well where it is all of a tech, new world company known as netflix many of them are trying to bounce how macy's has. take cbs shares and still beaten up but after hit and lows earlier this month is around 14% and not too bad. viacom is up 30% of its lows discover communication is up around 40% like i said, these are still a long way from record high. but melissa, could the upside continue or many of these traditional names eventually going to succumb to the likes of an amazon or a netflix big question there for traders >> thank you, dom chu. the big question is what happens to the at&t

dom chu has a look at the new warren buffet archive. dom? >> if you want to get a buffet fix, you can get that fix in a big way with buffet.cnbc.com the reason why we say this is because it's been years in the making and months to compile we got hours of -- 500 some clips out there. we got 130 hours worth of footage from all of these annual general meetings, agm, as you calm them, transcribed, 2600 pages worth of content. search the archives, you can look at the popular searches and search by any keyword there. also, some other interesting applications you can do with the website. go through and hunt for the last 25 annual meetings that berkshire had, full video of the entire meeting and verbatims for them all buffet a-z, a lot of the topics talked about from airlines to ceo pay, all come biled in an app-like format like this. also, any history about buffet as an investor is here on the timeline again, another huge way to categorize all of those things, and, of course, all the interviews that buffet gave to cnbc over the years, many exclusiv

surging off their recent lows for more, let's go to the man who is always full of life dom chu of the newsroom. hey, dompreciate getting to work alongside the entire "fast money" team, melissa but there are some stocks that have investors wondering if the bottom is in so we decided to take a look at the overall s&p 500. well then wanted to identify the stocks that have made at least a 52-week low or worse so far in 2018 of those stocks, we looked at those that have staged some relatively bigger rallies since those lows in our example here, we looked at least 10% from those recent levels around 60 stocks fit that bill the top of the list no surprise. so who is up for a little bash koa and guac we have chipotle mexican grill, a stock up 75% above that level, its low that it hit just this year also in that general same ballpark is advanced micro devices which is 45% above its recent low and a couple of mega cap names that might be in the early stages of a potential run. might be general electric, yes, it got hammered yesterday, but still up 14% from the recent low. and oil giant exxonmobil 11% higher than

. >> all right, dom, thank you very much, dom chu there we are down 500 points, lows at the start ofour. we have come back down, dow's down 378, and you should see there is divergence between what's happening in the blue chips and small caps as we said, down a point and a half right now and s&p down 30 >> and big sector differences as well, of course, as we discussed, particularly, driven by whether they are sensitive to yields in a positive or negative way. financials at the bottom, and real estate and utilities at the top. seema is in the heart of the action >> biggest drop in the s&p 500 since april 6 moving on heavy volume, surprising given it's a a holiday-shortened week it's outpacing its volume, 78.4 million shares exchanged hands, and we are looking at 5 out of the 11 s&p 500 sectors set to close in correction territory, really led by financials, the big banks, and the regional ones participating in today's selloff. the big names, goldman sachs, morgan stanley, jpmorgan, down 2-4% on the day, and energy, the story there is certainly not helping. the price differential between

. >> dom chu has a news alert for us on, dom >> tesla >> we're talking about the first three-day win streak since pretty much april. the reason why is consumer reports has now reversed course on their previous model 3 view they're now actually recommending the model 3 because of an update that tesla has made to the car's software that now improves its braking ability you may recall that when they first came out with the no recommendation on that car, it did send the shares a little off. it's fair to say, guys that the model 3 has been the battleground for a lot of analysts and investors out there because of the future prospects for this quote/unquote mass market vehicle in this case here, tesla perhaps riding a wave on the positive side given this new consumer reports recommendation for the car. back over to you >> thank you i mean, tesla, guys, has never gotten love from consumer reports or any of these whoever test drive the cars or for safety or whatever wonder what this does in the overall story. >> it can't hurt >> people have talked aboutresisantly, are they able to raise cash

this is not a bridge too far some of the biggest risks facing investors so far, dom chu breaks it down. maybe domparty >> there might be. >> you going to do it for tomorrow >> there might be quinoa burgers. >> garden burgers. >> but you know what there are few things out there that the queen of england may be kind of staying up at night for and everything else. but she's going to get some sleep. investors, however, are not going to get sleep there are so many risks out there with what's happening for the markets. we spoke to investors. this a small sample of them. there's tons of views out there on what the biggest ruisks are eric viloria says pick up on inflation. rising price pressures that would contribute to further repricing fed tightening expectations over and above what's already priced in it's our sense there may only be limited room of further repricing. volatility there let's move to the next one here that flows into this idea of rising interest rates. matt maley says every time we see a meaningful rise in rates, it exposes some sort of mal investment in the system it could create the k

dom chu joins us now from cnbc headquarters dom, a lot of concern about what was happening in italy,at's right. if you look at the dow futures implied open right now, we'll be up 170 points. that was about the same amount we were going to be down going into the open yesterday. i guess the bulls want to see the acceleration of these gains into the close just like we saw acceleration of the decrease yesterday. we've got interesting themes developing it very much was a defensive risk-on, risk-off whatever type of nature move the biggest decliners and sectors, the financials. no surprise there as interest rates fell some of the big banks especially the big ones like jpmorgan took hits there same thing for industrials the holdups here in terms of top performers, utilities actually eked out a slight move staples and energy those were the relative top performers those interest rate plays. interest rate is a big part of that story as we talk about 10-year note yields, we saw 3.1%. we're recovering some of that now. and two places to find that play out. we talked about the money center banks.