professor khouw has the prescription it's time to risk less and make more "options action" starts right now. >>> let's get right to it. stocks are rallying to kick off the first day of q4 following the market's worst first month of the year and the chart master says after a big flush like we had in september, investors habitually sell two types of stocks carter, what are they? >> sure. conceptually, not a type by sector or market cap or business, but by pattern, which is to say, stocks that are especially weak, preceding a selloff, they go down the most often, because people know in a way they shouldn't have been there, they're not working anyway, they're like, what am i doing? i've known this is wrong for a while and now it's really getting worse, there's no bid. at the opposite end is a stock that's quite extended. the sentiment is, i've put a lot of money in this, i've made great gains, i know i've been overstaying my welcome that second circumstance we're seeing right now in a lot of high flyers like costco, certain financials take a look at blackstone, bx. look at this table blacks

tonight, professor khouw explains how to treat such surprises. the gang helps you decide what kind of investor you are. >>> plus calling all "options action" fans reach into your pocket, grab your phone, and tweet us your question at options action. if it's nice, we'll answer it on air, when "options action" returns. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade. we're carvana, the company because we take trading as seriously as you do. who invented car vending machines and buying a car 100% online. now we've created a brand-new way for you to sell your car. whether it's a year old or a few years old. we wanna b

and another that's so bad it's good we have carter worth and mike khouw and a special appearance by nayn. we are looking at two consumer facing names tonight carter worth is checking in on marriott how do the charts look we are obviously having some difficulty with carter's audio, so, mike, what do you see for marriott >> the first thing i would say is we know obviously the direction that carter was going to take with this. one of the thing that is we definitely have seen is some good relative strength in marriott lately. anybody who's been following the stock -- we can probably pull up a chart right now, even though carter is not here to show us his. we'll see the stock has done quite well in recent weeks one of the reasons for this is that people are looking to the long end of the recovery from the pandemic we have seen the rev par, revenue per room, improving in some markets, notably asia, although that's not true everywhere one of the things people looking at the stock is the multiple right now, about 33 times forward earnings, you might think that's retiffly high, but here's an imp

i think tim is right to add to these positions. >>> mike khouw, thank you. that's friday, 5:30 p.m.rn time for the full show >>> up next, final trades. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything. like a coffee run... don't just sell it. ten-x it. firefighter maggie gronewald knows how to handle dry weather... ...and dry, cracked skin. new gold bond advanced healing ointment. restore healthy skin, with no sticky feeling. gold bond. champion your skin.

>> sell a put, sell a call and mastercard and look for more upside >> mike khouw. >> the stock is relatively starts now. >> announcer: this is a paid advertisement for csn. >> you know, many times, i've been out here with a new coin release, and i have asked for a drum roll. and in all honesty, in the past, it's really just been nothing but hyperbole. but this time, i really would like a drum roll. i don't think i'm gonna get one, but i really think i should have one. this is, i think, the singular most important numismatic event certainly of the last quarter century, perhaps in my entire professional career, in terms of interest, in terms of

traeger has always sold as costco but they are not just at cost khouw. they are a gross margin problem but a they are actually cutting prices at costco, they are on sale at costco you look at that and say what's going on there is something going on? they are discounting them at costco and they have a road show where you can get extra off if you happen to be at the right store at the right time. those two make a great example because they are in the same industry. >> what am i supposed to conclude from that is this that something is going on with traeger or not going on with weber or costco cut a good deal with traeger or what what's my conclusion here? >> tyler, your conclusion is that i think costco probably struck a good deal with traeger. but i come back to the fact that why would there be a special sales if gross margins are falling and they have a supply chain issue, what's going on there may not be anything but i want to point out one i think this that is there are going to be companies of that great is theups i was listening tocal audio when she s

. >> i just saw juan for sale at cost khouw that was either $500 or $600 basically.ut that's a lot of money for a christmas tree. let me ask you about sort of an aanalogous situation an analyst downgraded a retailer because she didn't think they had never inventory in stock why wouldn't her downgrade apply to you >> let me be clear, we don't sell overstocked goods that's a legacy name we are selling this year's product. this market is particularly good for our business model we don't sell the product if we don't own the product. it is owned by the suppliers, in our warehouse. in a time of particularly high demand and low supply chaus suppliers want to have maximum ways to sell their inventory if they are forced to put it in a fulfillment by amazon warehouse or a castle gate at wayfair, that limits the channel that they are selling it to. we let them sell it anywhere so we have this year's goods more suppliers listing their products on our site i think this high demand/low supply time is the perfect time for overstock to excel. >> that's a very, very interesting case

today's activity sparking some interesting options trading as well mike khouw has the action.ry busy trading over 1.6 million contracts a day on average. today 140% of that volume, nearly 2.4 million contracts, puts outpacing calls that's less than what we normally see the reason for that is the two most active contracts both expiring by the end of the week. >> thanks for that, mike for more "options action," tune in to the full show, friday, 5:30asrnim nt, final trades. as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage. you have the best pizza in town and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> final trade time tim? >> with a lot of work to do still but a valuation that's very defendable and outperformance to even apple this year. intel i think is well-poised in this environment >> karen >> yeah, happy about merck, but this $8 run in merck is excess