giant that could get overshadowed next week >> finally recovering from the widely held wipeout, mike khouw has a sequel that might be better than the original get less to make more. options action starts now. >> a smoking hot stock and a twist on the consumers staple. carter and mike are laying out a way to play the name if you think this tobacco stock is going to burn higher carter, what are you looking at? >> smoking, burn higher, we have it all here. let's go right to the charts it will be similar and these are weekly bars that puts in context the high almost five years ago at 120plus we have broken the downtrend is it a head and shoulders bottom which is another way to characterize a reversal formation. it is, the next chart. it doesn't matter what you call it the sequencing is some of the most time tested and markets look at the next chart same timeframe what we have here is basically a very symmetrical orderly, bottoming out process and the presumption is it will return to its all-time high. philip morris -- where did it close? >> the all-time high was 103, 104. i think you have an u

>> call calendar on xle. >> mike khouw?call spreads on smh to play that bullish semi play >> we'll see you in the new year next friday. meantime, your money 2022 starts right now. yoefrl - [voiceover] the following is a paid commercial program, paid for by ancient nutrition. these statements have not been evaluated by the food and drug administration. this product is not intended to diagnose, treat, cure, or prevent any disease. this content is for informational and educational purposes only. it is not intended to provide medical advice or take the place of medical advice, or treatment from a personal physician. - i'm naomi whittel. i'm an author, an entrepreneur, and i am in search of the very best nutrients. in fact, i've spent the last 17 years traveling all around the world. i want to discover the best that nature and science

then find out why tony is selecting microsoft as a long-term winner that could endure plus, professor khouw with a teaching moment on how to catch up when sudden and swift changes catch you off guard. it is time to list less to make more "options action" tarts right now. >> and let's get right to it tech taking another beating today. the nasdaq dropping more than 2.5% now down more than 7% for the week and as we gear up for big tech earnings next week, carter worth says one name could be in for even more pain carter, take it away >> certainly more than one could be in for pain but let's look at google a couple of charts, comparative absolute relative. we've got them all so the first one this is simply looking at a google versus the qqq, versus the s.p.y. basically the days leading up to covid, the plung and the ricochet and we know that spies and the market is up 34% and google is up 80. and okay, that is great. but google is starting to lose ground the next is an absolute chart. the next two charts are identical. the first is with the actual trend line, the second is with the automated. th

even as the broader tech stabilizes the action has betters seeing there will be problems ahead mike khouws. >> ibm we saw two times the average daily volume that was true of calls and puts. some of that call activity were sellers. one of the options seeing a lot of opening activity. the january 14th 135 strike puts and an average price of $1.83. prior to those puts are believing action we pull the into that is it could be lower and a week from this coming friday i would point out the options market was caught off side by the nearly 20% gain we saw off of november. it was only implying a 20% implied volatility options prices are about 50% higher than they were then it is expecting some volatility going forward. >> mike khouw, thank you for > n. >>upext, final trades. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even b

carter worth and mike khouw tackle that. >>> he spotted a new technical pattern in the old-school tech titan. >>> plus a look back on a specific bank trade before the barrage begins "options action" starts right now. >>> welcome, gentlemen we begin with the first of two opposing trade on the consumers themselves caught between covid. carter worth will take us through the big picture and part one. carter >> you bet what we're going to look at first is an etf, the xrt, that captures a broad swath of retailers. small once like footlocker and gap. it tells a pure story. let's look at the first chart. closed out today at 87.18. and no judgments, no drawings, let's draw some lines. next chart one thing one could see, that's what my eye sees, a big topping out or rolling over. the next chart, you can draw the lines this way could you call that a double top? you could. you can. look at the next chart is it a well-defined trend and break in trend it is. put a few of them together a final chart. we have a double top we have a break in trend, and we have very poor relative performance to the s&p,

mike, khouw thank for more options action tune in friday for more at 5:30 p.m.time to vote for the tim's fast pitch are you buying best buy? head on over the sus d natresrereltanfil ad a up next. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade. you booked a sunny vrbo ski chalet. with endless views of snow-covered peaks. (laughter) a stove that inspires magnificent hot cocoa. and a perfect ski-in ski-out. but the thing they'll remember forever? grandpa coming out of retirement to give a few ski lessons. the time to plan your get together is now. find it on vrbo. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidate

some of the valuations are still really high. >> mike khouw, thank you for more options action, tuneoul show friday, 5:30 p.m. eastern time. >> up next, your final trades. ♪ ♪ ♪ ♪ ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq >>> tune in 8:00 p.m. tonight for cnbc's special report, scott wapner and jim cramer sitting down to try to figure out what this all meant and what we should be prepared for tomorrow. time for thetinal trade. around the horn we go. tim. >> yeah, i think you're buying energy names they're the ones that would have been a buy yesterday, cheniere, l & g prices higher. >> chairwoman. >> yes, i'm going for value tech, which is meta platforms, facebook you have all the meta for free, zero >> nadine. >> i was going to say dramamine, but i'll give you china through the etf fxi. >> dan nathan. >> yeah, i'm over meta and i would b

mike khouw will layout how to do at th is next you're not going anywhere. "fast money" is back in two. well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq >>> welcome back to "fast money" let's take one more look at today's action stocks finishing the day off the loi lows, and the nasdaq rallied off the low. mike choe is here to break it down >> so i was taking a look at lqd. this is the investment grade bond etf now, this thing saw about eight times the average daily put volume that was largely the result of a single trade in the march 129/125 put spread we saw a buyer of 75,000 of those spending $1.5.

carter worth and mike khouw ck

consumer sectors against each other, but not in the way you're probably expecting carter worth and mike khouwe that. >>> tony zhang flies solo on cisco, a new pattern in the old school tech titan. >>> plus, a look back on a specific bank trade before the barrage of bank earnings begins next week. it's time to risk less to make more "options action" starts right now. >> welcome, gentlemen. we begin with the first of two opposing trades on the consumer themselves caught between covid on the one hand, inflation on the other. carter worth is going to take us through the big picture and part one. >> you better so what we're going to look at first is an etf, the xrt that captures a broad swath of retailers, some 109 names, amazon and walmart and small ones like foot locker and gap. the key is it's an equal weight etf, so it tells a pure story. let's look at the first chart. this is the xrt, close out today at 8718, and no judgments, no drawings let's draw some lines. next chart, one thing one could see or draw, that's what my eye sees a big topping out or a rolling over formation look at the next c

sector will continue to rally in the new year welling' drill down on that call and later professor khouw takes a perfect opportunity to take some protection. he will tell us how. it's time to risk less and make more the final "options action" of 2021 starts right now. >> let's get to it ripping higher in 2021 surger more than 21% outpacing the broader market as you get ready kick off the new year, the chart master says this chip rip has even more room to run carter, take it away. >> before we look at the charts i think it's important to say this, being up 41% big thing, prior year up 35%, prior year up 31 semis have never outperformed the s&p for more than two years in a row this is now a third year my hunch is that we can pull it off one more time. let's look at a fe charts and figure it out the first is a two panel it's still a catch up trade. the top panel is the sox index we are well above the dot-com '99 high look at the bottom panel we have not recovered the ground loss on a relative basis to the s&p 500. if you look at the second chart it's the exact same chart but there's line an

the stock has been a loser for a while now, down 30% in the last year mike khouw joins us to break downan, rkt, this thing saw more than 7.6 times its average daily put volume that was the result of a single very large trade it was the march 14/10 put spread the buyer paid a little over a dollar 25,000 spreads representing 2.5 million shares and that $10 short strike representing the targeted downside over the course of the next couple of months at least one institutional trader sees further weakness ahead. >> all right, mike, thank you very much. as always, for more "options action," catch the full show tomorrow night 5:30 p.m. eastern time >>> next, bank earnings. we're back in two. ♪♪ ♪♪ ♪♪ mount everest, the tallest mountain on the face of the earth. keep dreaming. [music: “you can get it if you really want” by jimmy cliff] >>> welcome back one programming note, tomorrow morning, 5:10 a.m., do not miss my interview with the iea's executive director, dr. fatih birol. we'll talk about russia, europe's natural gas problem and whether vladimir putin is purposely withholding gas from eur

mike khouw joins us to break down the action. >> jets more than three times the average daily put volumeive puts, the february 19 spot 86, over 12,000 traded for over 30 cents and the buyer is betting on a move back toward the december lows. >> thanks for that for more "options action" tune in tomorrow at 5:30 p.m. eastern time up next, final trades. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job descrip

one option trade ser betting $1 million that there are plenty more gains to come mike khouw joins us. so if the financials we saw a lot of bullish today xlf, kales outpacing puts about by 2.5 to 1 and that is largely the result of a purchase of 20,000 of the february 41, 44 strike call spreads, they were spending about 40 cents. buyers are betting that xlf could rise somewhere in the neighborhood of 5% to 10% by the third friday in february and we did see similar activity in the top constituents of xlf. >> a bunch of them were up today, guy. >> yeah, no, absolutely. karen nailed wells fargo whether it was at its worst in terms of news, she stepped in but morgan stanley sticks out to me this is a name that stan hand everybody has talked about and dan brought it up a couple of years ago. they are in the right business they've transitioned and the most diverse in my opinion and i think they're poised noteem to take out to take out the 105 all-time high blue to take out the 115, 120 level from earnings on january 19th. morgan stanley sticks out as best in breed right now. >> tune into "o