it's just khou and carter's trade. they will show you how to profit too. why were the traders betting on a monster take over. the 411. "options action" begins right now. >> live in the nasdaq market at the equity options exchange, i'm melissa lee. these are the traders here in times square and wild new orleans. we will get you the trades in a moment. let's start with the market rout. stocks having the worst day in a month, and if history can be an indication, the pain can be starting yet again. why is that? >> we were talking before the show, you were talking about the set up and you look back to 2011, we had similar things going on. 2011, may 2nd was the high of the year in equities. we also had a huge downdraft in crude oil that week and it was down about 10%. we are looking out at a big technology social media ipo of linked in that came may 18th. we had huge sell off and a 2.5% sell off in equities. facebook set their date for the may 18 ipo. this is anecdotal, but the market doesn't feel that great. when you think of how the banks have been acting, the

it's khou and carter's options trade on the tech giant and how you can make money too. peak interest. kate kelly with a report on why chesapeake stock may attract activist investors. something traders are betting on and we will tell you why. "options action's" number one fan needs help writing a trade gone wrong. we're on the case. the action starts right now. >> live from the nasdaq market at the world's largest exchange, i'm melissa lee. these are the traders. we will have more on the investment, but we will start off with the markets. the dow had their west week in months. despite the down day today. is there a bull case to be made? let's go to the money and find out. it seems like consensus is this is a repeat of 2011. >> it's interesting because one of the things you want to do as an investor or trader is as everyone is looking in one direction, you should be being looking in another. so many things are bearish right now. that might give people pause and have them looking in another direction. only 15% of the stocks and the s&p are trading cheap relative to how muc

our affiliate in houston, khou, says the closet is a janitor's closet. the kids were locked inside five minutes at a time as a form of punishment. one mom says her son was thrown in the closet for laughing in class and he was so scared that he vomited! >> oh, no! >> i know. the teacher has been suspended. >> at the very least, i would hope. there is no excuse for that kind of punishment. that is not a time-out. that is torture for a little kid. >> for a 4-year-old kid. >> 19 minutes now past 5:00. if you want an expanded look at all of our top stories, we have it for you. aim to please. go to cnn.com/earlystart. it's on our blog, everything you want there. >>> this is the news homeowners are hoping for. christine romans says the housing market is taking a major turn. going to tell us why after the break. [ thunk ] sweet! [ male announcer ] the solid thunk of the door on the jetta. thanks, mister! [ meow ] [ male announcer ] another example of volkswagen quality. that's the power of german engineering. right now lease the 2012 jetta for $159 a month. to y

sherry williams with our affiliate khou has her story. >> reporter: 17-year-old diane tran has a heavyis high. >> dual credit u.s. history, dual credit english, college algebra, spanish. >> reporter: and she has a heavy load in life. since her parents divorced and moved away, leaving her to help provide for a brother at texas a&m and a little sister with relatives in houston. >> i always thought our family was happy. >> reporter: after a judge warned her in april to stop missing so much school, tran recently missed again. she works part-time at a wedding venue and full-time at a dry cleaners. >> and she goes from job to job, from school, she stays up until 7:00 in the morning doing her homework. >> reporter: but the judge says the case is bigger than tran. >> if you let one of them run loose, what are you going to do with the rest of them? let them go, too? a little stay in the jail for one night, it's not death sentence. >> reporter: we explained the particulars of tran's situation to him. if the case were a little bit of justice tempered with mercy. >> probably so, yes, ma'am. >> rep

>> the judge told khou he didn't know her situation at sentencing and may consider erasing the arrest from her record but doesn't want to appear soft. >> only in texas. >> "a little stay in the jail for one night is not a death sentence." >> can they put her on death row for this? >> no, john. there's a good gray area between those two sentences although this one is obviously unfairly harsh. come on, the girl is doing all she can to get by for herself and her family and as we've made clear she's know at the one failing. >> she should figure out how to get a ged and get herself into college as quickly as possible. it's sad someone has to work so hard so young. >> why aren't the parents held in court? >> where in the world the deadbeat parents went. >>> ahead on "starting point" a human traffic jam on the world's highest mountain. despite four recent deaths, hear from a man who just reached the summit. >>> paying tribute to the nation's fallen hawarriors on ts memorial day. martin dempsey, the chairman of the joint chiefs of staff joins us next. el greasy ultra sheer® is clean and dry.

houston affiliate khou says diane tran is now living with one of her employers. from working the two jobs that she misses school. the judge said he wanted to make an example of tran so he ordered her to spend 24 hours in jail and pay a $100 fine. did i mention she was an honors student? >>> a 19-year-old tech entrepreneur spends two months as a squatter at the aol building in palo alto. cnet says eric simons got a building pass working for a program fronting space there. when the program ended simons didn't have rent for money so he decided he was going to stay there, ate free food, took showers at the employee gym and slept on the couch. aol employees thought he was a really hard worker. eventually kicked out by security. senior vice president said "it was always our intention to facilitate entrepreneurialism in the palo alto office, we just didnx

the fire is still raging that the hour according to our affiliate khou.ed and they evacuated the day care next to this church just in case. >>> al gore has a new girlfriend. "the washington post" reports the former vice president is dating elizabeth keadle. she is a democratic donor for california who is also devoted to the environment. keadle accompanied gore in january on a trip to raise awareness about climate change. it's been two years since al and tipper gore separated after 40 years of marriage. >> and the 12-year-old texas boy suspended for shaving his head to look like the face of his favorite nba player. now check out patrick gonzalez's haircut of matt bonner. gonzalez's school called it a distraction and he had to shave off that design, but the spurs, they gave him free tickets to last night's playoff game. gonzalez met bonner who is a redhead like him and he said it was the nicest thing any fan did for him. there's a huge height difference. >> maybe he'll grow up to be an independent star. >> it still was a nice thing that the organization did

the judge spoke to local station khou. >> if you let one of them run loose, what are you going to do with the rest of them? let them go too? a little stay in the jail for one night is not death sentence. >> reporter: this website, asking for donations for tran, has made more than $100,000. but in a sign of the type of person tran is, she says, she doesn't want the money. >> i want to donate the money to someone who really needs it. >> reporter: and tran's attorney now tells us late wednesday, he met with the judge and convinced him to reverse the decision, dropping the contempt charge. george, more good news, the lawyer is confident that her record will soon be cleared. >> thank goodness for that. thanks a lot. >>> now, turning to 6-year-old spelling star lori anne madison. the youngest person ever to compete in the scripps national spelling bee. josh is back. he has all the details. >> yeah, boy. she had everybody hanging on every letter. lori anne. breezing through the first round with a word that would stump all of us. but how about the second round? take a look. as 6-year-old lor

judge who gave her the 24-hour sentence which by the way is the minimum said this to a local station khouhouston. if you let one run loose, what are you going to do with the rest of them? let them go, too? there's good news. a houston councilman is worried about her record and trying to get this criminal activity removed, expunged from her record, and also apparently an organization called louisiana children education alliance has raised for her $40,000 because clearly, she's working all these jobs because she's trying to support her family since her parents are out of the picture. >> coming up at 8:20, we're going to speak to somebody in charge of trying to raise the money but in the meantime, e-mail us or tweet us. let us know what you think about that. >> who's right? the judge or the student? meanwhile, here are your headlines. >> pedro hernandez's sister not keeping quiet about her brother's alleged involvement in the death of little etan patz. we're now learning hernandez went back to the scene of the crime several years later. the 51-year-old apparently returned to work at that sam