i am looking at lcc, luv, and ual.i have positions to the long side in lcc and luv. - traditionally the airlines move with the economy. is this an indication that the economy is getting better? - absolutely. everybody always has money invested in the stock market - your 401(k), your ira, your long stocks. as the stock market goes higher, people's net worth goes higher, they want to travel more. that leisure travel means that people are traveling more, that means it's good for the airlines. we are also seeing a pullback in oil here. i looked at luv in particular - they raised their dividend. they are also having a nice stock buyback. i think this stock can go through $14.50. - really? what other price targets do you have? - lcc we have seen huge, unusual option activity on the oct. 20 line, so i am long the oct. 22 bull call spread. so i think that lcc can get north of $22 between now and october. ual, i am looking for a pullback down to $33.80, and then i am going to buy some call spreads in ual. the airlines in partic

i had lcc, which is u.s. air, aamrq, just about doubled, and united air. >> a note on lcc, u.s., up 34% since jim cramer recommended it on his show, so i thought i would throw out what has been a great call. and he recommended the airlines, because of what you say. the business models, steph, have changed. the companies are making money. >> completely. >> i started buying it in april. i'm up about double in it on aamrq. also bought boeing and boeing will benefit as the airlines get more flush. >> and as the mergers happen. and you'll have the synergies, so the lower crude and the synergies, and you can also look at u.p.s. and fedex, too. >> just can it continue, right? the gains have been great. can the gains -- can you continue to ride this momentum in the lccs and other big names? >> we saw the pull-back in march and i thought we'd see something similar here. we haven't seen that, scott. so i've been wrong. i haven't reloaded, so kudos to you, steve. >> transports at an all-time high. >> yeah. >> into the airlines. in the rails, but not in the airlines, and i've missed the las

obviously, lcc chashares go hig, important for the stakeholders in the merger with american airlines,are price are unsecured claim holders and equity holders of the american airlines holding company. and a big positive for them. and a lot of market participants think this could continue, obviously, load factors improving and the number of passengers, and so we see buyers of the october 20 and the january 14 and 20 calls, paying a little over a buck and they think the stock will be more than 12% higher by october expiration. >> buyer of the airlines, john? >> i have been. pete much bigger buyer than i have. and right now i don't have the positions he does, but delta is the clear outperformer in the group. 20 pints ahead of lcc or united airlines as far as performance year-to-date. all hitting it pretty hard and to mike's point, been buying in this couldn't very, very aggressively, since it was 15. >> coming up next, we are revealing more of the cnbc disruptor. companies shaping up the status quo. one of them literally out of this world. details when "fast money" comes right back. ♪ [ c

one sector i am looking at in particular, the airline stocks: lcc, luv, they all look strong to the upside, and also ual. i think they are going to continue to move higher. - airline stocks tend to move with the economy, and when the economy is down, they fall; when it's better, they rise. is that one of your reasonings here? - yeah, it's like the more the stock market goes higher, everybody is always vested in the stock market. 401k, ira - if you have more money in the bank, you are going to want to travel more. leisure and travel means that airline stocks go higher. - what about tech stocks? - i like certain parts of technology. i like ebay, google, yahoo, sandisk, qualcomm. the one i am on the sidelines or want to play to the short side is apple. apple is not innovating as much - we talked about this on the show - as much as google. they are in a "show me" phase. if they can show me something at the end of the summer, if they can come up with apple tv by the end of the year, employ some of the cash, they might be able to rally. but you know, on a chart, it looks very weak. - and what ab

air, lcc, which is merging into american airlines. become the number one carrier and be in a very strong position to compete against the other two players, delta and united. >> i see. and martin, now on to your pick. ebay you like. what's so great about ebay? >> okay. ebay is going through a massive transformation, into being one of the leaders in ecommerce and mobile communications. the ebay, as you know, was previously an underperforming auction site. it's now growing at a rate, we think, that is sustainable at about 20% or better, in earnings per share, for the next several years. it has a long runway of growth with two major segments, that is marketplaces, which is ebay.com, which is now converted to mainly new items and fresh goods. and the other is paypal, which is the leading online payment processor in the world. >> okay, interesting. now, patrick, you're not sold on ebay, right? but the valuation and the competition are concerns for you. >> that's correct. we think paypal is a potential jewel. we think the market place busine

i think the airlines still look good, lcc, ula, i think this market will continue to move higher. always keep an eye on the vix and volatility index, to give me a signal that the market can actually have a correction, which i don't think it's going to have until i see a vix, at least putting on 18. >> what about that, mike santoli, can you hear me now? >> i can, yeah. >> so andrew's talking about the vix popping, as being a catalyst. do you see any catalyst on the horizon to move this market one way or the other? >> to be honest, the only downside catalyst i see is not actually the fed, because i think it's going to be a very managed, telegraphed process. when we get there, we'll be lucky once the taper really kicks in. it will be a microstutter step. last week, that volatility was a little bit about the chinese shortfall and chinese manufacturing growth versus the actual market dynamics over here. i do think that is the risk. and so far this handoff to the cyclical seems like -- >> it seems like we're having technical difficulties with mike santoli. tim leech, if i wanted to get