that's small cap stocks, the iwm. so for those of you who like to look at portfolio hedges or put some sort of delta position in your portfolio just in case we have a sell-off, i think you get the most bang for your buck in the iwm. it sold off from the highs last year to the lows in february 28%. it's made back about 23% of that here. here's the thing. i think you have a good opportunity where if it starts to move lower, i think this is where you're going to get the most bang for your buck. it's still about 10% from the all-time highs. and listen, i don't think you press this early next week. i think you give it an opportunity. we usually rally into fed meetings. maybe you get a lift on monday or tuesday. i would look at a put spread in august expiration, the iwm, with the etf trading today at 116, you could have bought the august 115, 100 put spread for $3, paying $3.75 for one of the august 115 puts. and selling one of the august 100 puts at 75 cents. $3 is your max risk. between 112 and 115 on the upside. max loss

some sort of short delta position in your portfolio i think you get the most bang for your buck in the iwm. it's made back about 23% here. you have an opportunity if it starts to move lower, you'll get more bang for your buck. it shows worse relative strength. i don't think you press this next week. you give it an opportunity. you rally into fed meetings. maybe you get a wlift. i would look at a put spread. when the etf was trading at 116. you could have bought the august 115/100 put spread for $3 paying 3.75 for one of the august puts and selling one at 75 cents. $3 is your max risk. you can make up to $12. lose up to 3, between 112 and 115 on the up side. max lost. i like this. it looks like decent support. it's basically 2, 2.5% of the underlying etf price to get a good bit of protection if things hit the fan in the summer. >> what do you think of the trade? >> look, you want to be hedged in this situation. it's pretty simple. we'd add a little bit of uptick in implied volatility but it's incredibly modest. >> also what we know is these have outperformed on the absolute low because of t

we'll talk about a way to use the iwm, the russell 2000, as a portfolio protector. >> we've got great people. another one is leaving us. anna is leaving, going to california. >> congratulations! >> great job she does. good luck, anna. >> that will do it for us. more "fast money" on monday. "options action" starts right after this. at horrible smells are really good at hiding. oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is. ♪ by switching to xfinity x1. rio olympic games show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. >>> hey there. we're live at the nasdaq market site on this tough afternoon for stocks. while they're getting ready, here's what's coming up on the show. >

iw am.focused on -- iwm. the trade we are looking at is a asked --using july 29 july 29 expiration.re is defined risk in this trade. what you pay for the put flies the max you can use. for many investors, that is an attractive structure. it has four-legs to it. in many of these cases, we have defined risk in our cases. >> of vonnie, back to you. kings: fanduel and draft in talks about a merger. they have been in the news mostly last year because they had been talking about merging and they were raising money from investors in places like sports and other venture capital. they came under fire from regulators and the valuations dropped by half. still ahead, microsoft wants to add linkedin to its professional network. how will microsoft integrate its new acquisitions? ♪ ?c+sv >> this is bloomberg markets. let's get a check of the headlines. mark has more. mark: donald trump is calling for a ban on muslims entering the united states for an indeterminate time, speaking in new hampshire, he said he will quote suspend immigration from areas of the world where there is a proven history of t

iwm, get a bounce in the meeting next week. >> our time is expired. we'll see you here next>>> my m make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i'm promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to kra mare can a. people want to make friends i want to make money for my job. not just to entertain but teach and coach. call me 1-800-743-cnbc or tweet me @jimcramer. all right. tough day, what can i say? >> look, we've moved too far too fast. last three weeks have been all good so now we're in what i call consolidation mode and we can't rally unless oil stops going down, which it might not, hence today's decline. dow tumbling 120 points, s&p plungi plunging 1.2%. all right. so with that in mind what's on tap for next week? the market moving action ahead frankly is not going to be out of earnings as you can tell from most of these in front of me it's in global events and it starts sunday with china's may industrial and retail produ

. >> i think the iwm, the russell needs to close above 120. i think the xlf is hanging in there.sting here. i think it rolls over. but we'll see. i think if the transports can sort of bounce again, then you're on to something here. there's no denying the strength of the underlying market. whether you like it or not. i don't like it, but you can't deny that it's going on. >> i'm not so impressed. it's up 25% from the february lows. >> i'm just saying, what stocks can you push around. what stocks have data. the small caps. 25% off its lows. it's still down. i think here's the thing. large caps aren't moving. we're stuck in this perpetual state. it ripped up here. it's still 90% from the all-time highs last year. not so impressed. >> up next, safe and sure way to beat the market. it may have something to do with several stocks you already own in your portfolio. brazil has been on a tear since the first part of the year. a fresh year-to-date high after janet yellen hinted that the economy is in better shape than wall street thinks. energy leading the rally, surging 2%, as crude oil s

the iwm seems to be headed back in a downtrend since may of last year. the transports which led us up to the upside back in january, they seem to be rolling over as well. so the two of the major components of the market rolled. the s&p is at a whisper of an all-time high. two things that make it up seem to be rolling over to the down side. >> take a look at the ten-year yield hitting multi-year lows today. how much lower can it go. mike from bank of america merrill lynch is here. great to see you. >> great to be here. >> how low can it go, and what was your interpretation of what yellen said today? >> a lot of things that we can talk about. i actually agree with pieces of what everybody's said up here today. >> very diplomatic. >> volatility is key. i'm a big believer in looking at volatility. implied volatility is one of the best things to look at in terms of what happens and where the markets go in terms of direction, right? in my world, in the corporate bond world, you want the certainty of coupon of principle. rates could go lower. you have $10 trill

the iwm which is the small cap indices is now up off of the lows 25%.ou take a look overt at oil which is what we were worried about this time last year and the whole second time, and the oih is up 49% from the lows, and then you are looking around the world, and the all country world index, which is an index that e encapsulates everything outside of the united states, and they are rally iing. the problem with them last year, they were concentrated with a large stocks with high earnings growth, but right now, it is the opposite, because there is a boost in the areas that is nothing but bad news in some cases for years. >> you wanted to get a wway, steve, from the bad breath or bad breadth of the market as josh was talking about, and so, is it with june off of the table, that is why we are rallying today? >> no, we saw good numbers particularly out of the hedge funds in may, and you can see the correlations breaking down which means that people are more comfortable, because the fundamentals make sense in the markets, but however, when we talk about reach

decisions about things like earnings and recessions, and here is wone very small example of myriad, and iwmhich is a small cap index and it falls to literally within one penny which is the l.o.d. and the core programs are wr written to look for these things to find the support, and when they find them to come in and buy. so it is really, really important not to look at the minute-by-minute action and think that there is some kind of the grand narrative that you are not aware of it, because a lot of it is the machines trading with machines, and that is perfectly fine. >> and lastly, colbert, is the u.s. the best place to be? >> the u.s. is the best place to be. >> the u.s. markets? >> yes, the u.s. is best to be, and foal lllowed up by europe, of course, the brexit vote, and you have to know how the un-do all of of the trade agreements to undo that market. >> and we hope to see you more soon, colbert of morgan stanley. tomorrow, we will be joined by jeffrey gundlach 1:45 eastern time, and he is the ceo of the doubleline capital, and the post fed given where the world isle, and our eamon jave