or below $56.60 by november expiration. but paying $3.40?> i never could do that. >> and neither could we. come on, mike, let's try to do this for less. >> selling the strike put. >> that's the spirit. >> so to spend less, mike sold not one but two of the november 52.50 strike puts for a total of $2.50 and created his one by two put spread. but he did something even better. he made making money easier and here is how. between $3.40 he spent buying one put and $2.20 he collected selling, mike reduced the cost of the trade to just $1.20. and now instead of needing tiffanys to fall below $56.60 to make money, mike can now see profits if tiffanys falls below the strike of the put by more than he spent on the trade or below $58.80 by november expiration. relax. there is a trade-off. and since mike sold more puts than he bought, he could be forced to buy at the lower put strike price or for $52.50 even if it falls well below that level. however, even if mike did have to buy at that price with all the money he made on the way down he wouldn't begin

of the same expiration. you want it to go to the two strikes of the call you sold. it is also where your stock gets called away. word to the wise, since you are short more than long you do this against stocks. dan, walk us through the trade. >> if i'm long a stock i don't want to add to it but i want to do an override. i want to look to january and buy the january 24.27 call spread. when i price that up versus stuck, today i bought one the jan calls for 1.70 and sold two for a total of $1.70. 85 cents each. that structure costs me nothing. against my long i'm covered. i'm not net short win of those options. like melissa said, between 24 and 27 i make all the gains in my stock but make up to $3 in profits. if the stock is 27 or higher, my stock is called away. but i made $3 in profit. here's the deal. i have the risk to the down side as i would with the stock. if it goes below 21 hoyne 85. but i cap my gains at basically $30. that's up 37% from here in three months. i think you take that. >> one of the most common questions i get is i bought stock higher and now it i

above the stock by the total cost of the trade by the second expiration or by august expiration.ince the time of the trade, facebook shares have risen 19%. now "options action" biggest fans are blowing up our facebook page and are liking it like madmen because they want to know the same thing. what will dan do now? >> before we answer that let's see how much money was made. had you bought facebook stock at the time of the trade would have made 14%. not bad. but dan's call calendar cost 45 cents and can be sold today for 55 cents. that is a return of 20%. you are probably thinking why not more money? well, here's the answer. dan might have gotten the trade a little too right. you see the increase in the value of the call that he short has offset the increase in the value of the call that he's long. if facebook can settle in and close just below 22 bucks, dan could make a lot more money. what does he do with the call? let's find out. >> you were too kind with rushes returns on that thing. >> to be honest i wish i would have bought the stock. the calendars set up beautifully at the

that puts strike price by more than the cost of the trade or below $90.70 by october expiration.aying 1.80 we are not trying to send olympic size sums of money here. >> sell the september weekly put. >> well done. to spend less mike sold the september weekly put for $1.05 and created his put calendar. he also made making money easier and here is how. between the put and the $1.05 mike reduced the cost to just .75 mike can see profits below the strike of the longer dated put by more than the .75 on the trade. >> it's great. >> it sure is. but it gets better. that's because the value of the put will decrease faster than the value that he thought allowing mike to do something only mr. bolt can't do, turn time into money. >> the reason i came here was to show the world that i'm the best. >> relax because there is a tradeoff. in order to make the most money mike needs nike stock to stay just above the put he sold by the first expiration or in this case above 92.50 but below the put he is long by the second expiration by more than the cost of the trade or in this case beloam $91.75. >>

expiration came today. how will you manage the longer call?covered the september 700 call and sold a higher strike call in october against the one that was long. now i have a call spread on for a credit. i sit here and can't lose money. >> we had not one but two winners on apple. last week as you remember mike bought the january 715 call spread. that has appreciated and got more room to run. carter suggested this trade. let's get back to him. what do you see here? >> not a lot happened over the last five days. we would stay in. we are still playing for 800. >> this is a coin toss. if you are comfortable staying long in apple and you want to keep your money committed that is fine. you can only have so many things in your book and i think there are other places i would prefer to play. >> we have the final call coming up next. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options,

long on the second expiration. so this requires a bit of timing here, dan. >> so timing's the key here. to me, i think the stock is likely to sell off after next week's announcement, september 12th, on wednesday. but i want to set up and own calls for october for a potential ipad mini. when the stock was about $6.82, i bought the september 22nd expiration, october 700 call spread. so i sold one of the september 700 calls at $6.10, used the proceeds to help finance the purchase of the october 700 call for $16.60. so that cost me $10.50. that is my max risk. so what i hope to happen is in two weeks on september expiration, i want apple to be below $700. i want september to roll off and expire worthless. and i essentially want to own that october 700 call for $10.50. reducing the cost of what it would cost me right now. because i think there could be a rant into ipad speculation. here's the thing. i'm not really bullish. i don't think the stock should be bought but it sets up well. >> mike, i've got to ask you what ma

above the stock by the total cost of the trade by the second expiration or by august expiration.acebook shares have risen 19%. now "options action" biggest fans are blowing up our facebook and liking it because they want to know the same thing. what will dan do now? >> before we answer that let's see how much money was made. had you bought facebook stock at the time of the trade would have made 14%. the call calendar cost 45 cents and can be sold today for about 55 cents. you are probably thinking why not more money? here is the answer. dan might have gotten the trade a little too right. you see the increase in the value of the crowd he was short would decrease the value he is long. dan could make a lot more money. what does he do with the call? let's find out. >> to be honest i wish i would have bought the stock. the calendars set up beautifully at the time and it does continue to set up well. remember we have lock up expiration. the stock had a sentiment reality. and so if it settles in here we will be in good shape. >> we have the final word up next. [ male announcer ] the mar

>> the thing that matters is there no s no expiration date on it. >> there is no expiration date. >> so you need one in order to vote. >> why? >> that's part of the new voter id laws. >> that's rhode island kick louse. >> we're living here, 18, we should be able to vote. >> it makes it less convenient to vote because then it's like i won't go through that trouble. >> they may not know about the extra sticker -- >> this new voter id law has never been around before in pennsylvania, what do you think the purpose of it is? >> to detract a large population from being able to te, and a lot of kids will not know what's going on when they go to try to vote. >> pennsylvania could be swayed by a number of students. >> and a a number of people with no license at all. >> and the population may not have an id. for example, a driver's license, not everyone has a driver's license. there is public transportation that everyone can take. >> people who are really into it and want to vote will find a way. >> i think it's a smart id, you don't want people coming up and randomly voting. >> personally, i

that short data put will expire worthless. my longer dated put will probably appreciate >> i like the trade. the company earlier this week announced an $8 million share buy back. a week before the results. it seemed preemptive to me. i think the stock goes lower. >> conspiracy theorist. i like the calendar but i think verticals make a lot of sense. >> want to short nike out there just say just don't do it as shorting stocks carrying unlimited risks. mike's put calendar costs $75 offers big leverage to the downside and of course we will see carter a little later on in the show. got a question send us an e-mail. the address "options action".cnbc.com. we'll answer it in our one-on-one web extra right after the show on our website. you will also find a ton of education material there so you want to check it out. here's what's coming up next: >> how about then apple's >>> two weeks ago dan made a bullish bet and now he looks like a genius. with tons of money still on the line, will he exit the trade or take another bite? find out w

he wasn't ticked until three minutes after his meter expired. we talked to this guy who posted this video. he's saying he did not put a dime in the meter. he posted an update, quote, fyi, i paid the bill, $63 plus $2 processing fee. i have a feeling no matter how much i fight this, the lapd will win. >> i didn't realize how smart these smart meters were. when the clock is up, they are on you. no grace period, no hoping the meter made is down the street. >> meter expired, $63. >> in rush hour we know there will probablien abbey an accident and it will likely be on a dash-cam camera. look at this guy driving down the road. look up ahead at what he captured. an obvious head-on collision between these two cars. then as the driver keeps going, you see there's a third car involved. reportedly he did cross the line and hit head on a hyundai and bmw. you clearly see how damaged this hyundai was. according to reports, four people were injured and taken to the hospital. unfortunately one of the victims in this accident did end up dying at the hospital lat

>> we do see some raising the price in the 6-9 months before the patent expires. >> does that defeat the alleged massive savings to the consumer from ger nark drugs? >> not at all. the opportunity is enormous. we know that if the country used anti-inflammatoriy drugs the way doctors and kaiser did rather than celebrex and vioxx, the country would have saved 5 billion dollars. >> i'm sorry we are out of time dr. sharon levine. dr. sharon levine.

all time for general debate has expired. pursuant to the rule, the bill shall be considered for amendment under the five-minute rule. in lieu of the amendment in the nature of a substitute recommended by the committee on natural resources, printed in the bill, an amendment in the nature of a substitute consisting of the text of rules committee print 112-30, modified by the amendment printed in part a of house report 112-660, is adopted. the bill as amended shall be considered as the original bill for the purpose of further amendment under the five-minute rule and is considered read. no further amendment to the bill as amended shall be in order except those printed in part b of house report 112-660. such further amendment may be offered only in the order printed in the report by a member designated in the report, shall be considered read, shall be debatable for the time specified in the report, equally divided and controlled by a proponent and opponent, shall not be subject to an amendment and shall not be subject to a demand

this so-called fiscal cliff, when the tax cuts expire year end, when the spending programs expire you know you will have defense companies, health care, transportation companies laying off. they have to tell employees they are going to get cut because these federal programs are going away. what's the implication of the economy in 2013? >> i think it will hurt the economy pretty badly but it is evidence we are living beyond our means. we don't need $5750 billionle defense pugt in the world we are living in today. we have to cut it an when we cut it there is layoffs and reduction in activity but it is not an excuse to spend on the industrial military come mex when we are almost broke as a country. like wise we can't keep giving the middle class tax cuts like the president says he wants to do and a romney says he wants to do when we have a trillion dollar deficit. somebody has to pay the taxes and we have to pay them now or cut the spending. >> what's the other low-hanging fruit? you talk about the defense budget, entitlements comes up all the times in terms of social security, medicare,

>> there is no expiration date on it. >> no expirate date on it. >> i need an expiration date on it?that's part of the new voter i.d. laws. what do you think? >> that's ridiculous. >> we are 18, we should be able to vote. >> it's makes it less convenient to vote. >> it's a hassle, people might not know about getting the extra sticker. >> this new vote every i.d. law has never been around in pennsylvania. what do you think the purpose of the is? >> to detract a large population from being able to vote, and a lot of kids will not -- a lot of kids will not know exactly what is going on when they go to try and vote. >> pennsylvania could be swayed by a number of students. >> and the number of people who don't have a license at all. >> the poorer population also might not have an i.d. not everyone has a driver's license. there is public transportation. >> people who really want to vote will find a way to vote. >> it's a smart idea. you don't want people coming up and randomly voting. >> honestly, personally, i don't think my vote matters. >> people have died, friends of mine, giving us a

you're in favor of letting the bush tax cuts expire. you want the tax cuts to expire hoop w . why is that? doesn't that make the recovery weaker? >> i think it does. on the other hand, we're in month 38 of this recovery. we don't have the rights to just keep borrowing and borrowing and borrowing massively until someone says we've reached a point where we can start to pay our bills. i think we have no choice, and if it means the economy is weaker because we have to either cut spending or raise taxes or both, which i think we need to do, then that's the agenda before the country. i mean, we finally are reaching the point where we can't borrow our way to prosperity. >> what are the implications of this? this so-called fiscal cliff, when the tax cuts expire at year end, simultaneously when the spending programs expire, you know you're going to have defense companies, health care companies, transportation companies laying off. they have to tell employees they're going to get cut because these federal programs are going away. so what's the implication of the economy in 2013 if we go

the speaker pro tempore: all time for debate has expired. pursuant to rethe rule, the resolution is ordered. the question is on engrossment and third reading of the resolution. those in favor say aye. those opposed, no. the ayes have it. third reading. the clerk: joint resolution providing for congressional disapproval under chapter 8 of title 5 united states code of the rules submitted by the office of family assistance of the administration for children and families of the department of health and human services relating to labor and expenditure authority under section 1115 of the social security act 42 united states code 1315 with respect to the temporary assistance for needy families program. the speaker pro tempore: pursuant to clause 1-c of rule 19, further consideration of house joint resolution 118 is postponed. pursuant to clause c of rule 119 further consideration of house joint resolution 118 will now resume. the clerk will report the title. the clerk: union calendar number 481 -- 489, house joint resolution 118, providing for con

will expire. there's a number of things coming together and many people who watch the news know that after this election, we're going to see a significant amount of activity around how we, members of congress, will be able to pull our fiscal situation back together in a way that hopefully avoids big cuts to important programs, hopefully avoids great pain that working class people might suffer if we don't come together and come up with some deal. and you've heard a lot of discussion about a grand bargain but if we do any deal, any deal, the core values of the deal, we need to stay first up and upfront, what this deal must include. the first thing this deal must include, and i'll start with this poster here, mr. speaker, is protection for america's social safety net. let me start with a quote from president roosevelt, when he says every man, woman, and child is a partner. and in 2012, these words come to life when we see the more than -- that more than 58 million people rely on medicaid. that's a lo

it expires in a couple weeks. i don't want to go home and my colleagues don't want to go home, we don't want to leave this body until we do our job on behalf of the farmers. and if anyone thinks a six-month extension, kicking the can down the road is sufficient, well, i encourage you to go look at my farmers, the dairy farmers, the mccormicks, people i met over our five-week break who thought we'd be able to pull together in a bipartisan way and do it. there's still time, mr. speaker, i don't want to go home, let's not go home until we take care of our farmers and get the job done right. i yield back the balance of my time. the speaker pro tempore: the gentlewoman yields back. furred the gentleman from illinois rise? -- for what purpose does the gentleman from illinois rise? >> i ask unanimous consent to address the house for one minute and to revise and extend my remarks. the speaker pro tempore: the gentleman is recognized for one minute. >> mr. speaker, on september 1 of 2012, a tragedy occurred at the quad cit

is it legal for the grocers to sell food past the expiration date? >> we turned to the food & drug administration and the -- it says it is legal to sell most foods past the expiration dates, that's because the fda and usda don't prevent the sale of foot past of date on the label, with the exception of infant formula. in fact neither agency requires expiration dates are required, however some states require a date displayed action and all food must be safe to eat, by law, so food manufacturers are held accountable for supplying -- i did not know that. >> interesting. >>> all right. so if you're going to be ordering takeout, the last question is -- should you leave a tip on the takeout order at a restaurant? this is at the restaurant. not the delivery guy. >> no, just if you go to the restaurant and pick it up. we turned to tipping.org. it said that tips are not warranted or expected when picking up a takeout food from most restaurants. there is often less service involved for the wait staff when taking food to go as compared to sitting down for dinner

the expiration of the bush tax cuts, how do you view this playing out, and what are the implications for the market? >> you know, i think it is very important. last week, the point when the investor attention really starts to focus on this when it is in europe. so it is a big deal, the fiscal cliff, 4% of gdp, secondly, it would hit at a team when it is the consumer's week of the it represents a big danger to the economy, the challenge is it is not discounted into the price. in other words, we're all talking about it. i have met very few investors who believe it will happen. and if we move to an environment where it is likely, it could create volatility in the market. >>> so how do you invest against that kind of back drop? where would you put money to work right now? >> i think there are a couple of things that investors can do. one thing is the people that have the flexibility, right now the options in the market, that is low. you buy insurance for the portfolio that will hopefully mitigate the impact if we do go over the cliff. the other is to look at assets that will also again,

it expired in 2010. >> i know, but-- >> the number of recipients are going down. nobody's responded to the fact that there were more-- >> okay, okay, hold on. >> recipients under the bush administration-- >> jim, quickly, ten seconds to responds. >> we stretched the programs out and may have shortened one here or there, but the programs are far beyond where the president took office. >> brenda: that's got to be the last word. 6 million of you out there are going to be hit with a health care law fine with a total cost of 8 billion bucks a year and someone here says that's not the worst of it. >> i hate to that these guys told you so, but the congressional budget office say the health care law will slap 6 million americans with a fine for not having insurance and all of those fines will add up to 8 billion dollars a year, this has got to hit the middle class. you've been warning about this, how bad is it going to get. >> a lot worse and here is why. we'll probably have more people get the fines as bad as the fines are for under 40-year-old reasonably healthy people

expiration whereas that was where it's priced that it was very simple that last trading day that's going to be the price of that everyone's going to buy it at the world did not change their driving habits that quickly there is a tremendous amount of speculation it's market now remember everybody hates speculators on the way up they can push the envelope doing that and they want to go the wrong way those drivers everybody because that is what worries and what worries me is like listen i love being short they used to kid around on the floor that i knew the left side of my pad. i am a natural sure it's more fun to trade a short market it's faster markets go down fast and they go up as a trader that's what we got our rush however we just came down these nine dollars what worries me is that there was a time years ago when i was trying to trading just started there was a rumor that israel was flying planes over to iran the market on one thousand contracts on our overnight access system that we had rallied five dollars well that was before all these big bangs that everything was planned what's

, the spending programs expiring. all this has led the economists to say that the rate could topple 20% and we could see recession. what is your take on the bush tax cuts? should they be extended? >> well, as you know the president has looked forward to the discussion with congress and the senate, and hopefully we can get to some sort of resolution where we don't go off the cliff. because it was never our intention to do that. and right now we can close the gap if we just allow the revenues to be raised and put the focus on the individuals who could afford to pay more on the increase in their taxes, and that would be the millionaires and billionaires. >> well, let's be fair, taxes are going up for more than anyone making $200,000. so that is not exactly a millionaire or billionaire. so should we really have the stand off on the raises on the taxes for the billionaires, so we're all waiting to see what happens. because everybody is going to see their taxes go up, above $200,000. not millionaires. >> well, i would think

the chair: the gentleman's time has expired. time has expired for all. the gentleman from california is recognized. mr. waxman: mr. chairman, my colleagues, this is an amendment that would do more harm than good i urge my colleagues to oppose it. yield back the balance of my time. the chair: all time having expired, the question is on the amendment offered by the gentleman from arizona, mr. gosar. so many as are in favor say aye. those opposed, no. in the opinion of the chair, the aye vs. it. the amendment is agreed to. the gentleman from california is recognized. mr. waxman: i request a roll call vote. the chair: a roll call vote is requested, pursuant to clause 6 of rule 18, further proceedings on the amendment offered by the gentleman from arizona will be postponed. pursuant to clause 6 of rule 18, proceedings will now resume on those amendments printed in house report 112-788 on which further proceedings were postponed in the following order. amendment number 1 by mr. markey of massachusetts. amendment number 3 by mr. waxman of california. amendment

that will then set the tone for this afternoon, when we get into equity expiration for all the stock options out there. again, it's been a pretty stable environment right now in the markets, but we're going to keep our eyes open all morning. > > volatility has in fact been down. there is some sense though that that could pick up. > > you know what, that's a normal phenomenon when you go into expiration. vol starts to get, as we call it on the floor, crushed. it starts to pull in. so that is a phenomenon that we typically see at this time in the cycle. we're going, now with that uncertainty, whether it's out of china, whether it's out of the eu, or here in the united states, when we hear datapoints or just earnings data that comes out that's a little bit mixed or disappointing, you could see vols pump up, so we're going to see if there's any opportunities in taking some vol positions, potentially to the upside going into the new expiration cycle. > > real quick joe, the commodities boom may have faded as the stimulus from the fed winds down. what's your play on that? > > you know, rig

it expired in 2010. >> i know, but-- >> the number of recipients are going down. nobody's responded to the fact that there were more-- >> okay, okay, hold on. >> recipients under the bush administration-- >> jim, quickly, ten seconds to responds. >> we stretched the programs out and may have shortened one here or there, but the programs are far beyond where the president took office. >> brenda: that's got to be the last word. 6 million of you out there are going to be hit with a health care law fine with a total cost of 8 billion bucks a year and someone here says that's not the worst of it. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ >> talk about a fine mess. a new report revealing that

the revocation was for nelson's and i believe nelson's expired but i believe it expired. >> vice president fung: you know what this is? this is a denial of the appeal of that denial, i presume. >> yes, i believe you're correct. >> vice president fung: okay. the original application was for bay -- >> bay bridge. >> president hwang: again, if i could just clarify, the statement from the appellant states on may 30, the bay bridge tow permit was denied. on june 20, the nelson's tow permit was revoked. >> i'd have to check the records. i just know the one from bay bridge was denied at the hearing. the revocation on the other one probably... you're probably correct on that. >> vice president fung: in the -- his original application then for the one that was revoked, did it have the same requirements? >> same requirements, yes. >> vice president fung: as this ordinance? >> yes. >> vice president fung: it just did not have the fingerprinting requirement, therefore there was no history check? >> there always was a fingerprinting requirement. i can show you that. actually i did show it to you but i'

when that first option expires. as far as yum, people love to trade because it is so tied to china. that is good and bad. china can be opaque and the bad is what we have seen in yum lately. >> reminder to you as you head

- what we came to talk to you about was your driving with an expired license. - yeah, the plates expiredforgot. - you forgot, okay. - to renew it. - for a year, dad? - i guess. that's the way it looks. - you forgot. - yeah, it slipped my mind. - so you're not avoiding it. - what are you implying, julia? - just--just a year. - the district attorney is now-- - i was just asking. - yeah? - i'm just asking, okay? we're only bringing this up because, you know, our kids were in the car and it ended up being a bit of a-- - oh, come on. let me tell you something. hold on. i mean, do you really think that i would ever put the grandkids in danger? do you think--? - no, dad, that's not-- - honestly do you think that-- - that's not what we're saying. - well, i would assume not. but it is what brought us to this point here. - we're just all a little concerned here. - with your driving our kids. - that's all this is. - hm. so you've been talking behind my back. - you were handcuffed in front of the grandkids for some-- - oh, for god-- [door opens and slams] - well, i hope you're proud of yourselves. -

positioned." (5554:30) (abell) "the city hires an ouuside company the current company ii about a - to expire and what the task porcc learnes could determine next." right now, the s - city the rate of errors withh thess cameras ii less han one-percent. but city leaders hope a review will make the cameras more effiiient....and make motorisss mooe comfortable. (5:46:44) "as long as peopl;e are oing 377miles per hour or greater in a 25-mile per hourrschool zone we're not going to apologizeefor the prograa. we hope for the day phen we can take hese cameras out of theee ppaces but we're &pnot there yet."45, news at te. half of those serving on on the half of thoss &p half of those serving on the by the city. their next year.expected in early - 33 adam jones has