break the tie. >> mike khouw, bring you in here.ou did notice pretty heavy options activity in linkedin. >> yeah, sure. 20 times revenue, 70 times earnings, 120 times free cash flow. is sure, it grow 100% over the last three years, but those are nose bleed valuations i can't touch. and the options market way to play that, they were buying the weekly 170 calls, paying $1.15. and i think that's a way to put premium to work if you are basically trying to ride the momentum trade here. but there's just no way to buy this stock on valuation. >> so, this is your koushsly optimistic. yeah, nose bleed valuations, but if you want to do this, you buy calls to limit your losses. >> yeah, i mean, you are risking less than 1% to make that play. but you don't buy this stock at this level. >> michael -- >> that's how you play it. you don't buy the stock here. you buy those options because you have a lot less risk. youfl defined your risk with that and if guy's right, which he has been dead-on, then you profit from that outlook. >> michael, i like t

mike khouw?, after watching the whole foods story, they were supposed to be eating lunch of companies like safeway, but they had earnings beat by about 20 cents. they were seeing good same-store seas growth. this company is still cheap, actually, even at current levels, 11 times, though it's up from 16 bucks. >> jcpenney, the move, 7%, a pop, dan. >> this doesn't make a lotle of interes interest. there was a big options trade today, somebody bought the april 17, 20,000 by 40,000 times, next week's earnings are going to be a big one. >> drop by caterpillar, beekers. >> we saw china sales being down a little bit. i wouldn't what to be in this. if i was forced to be in this space, i look at joy. >> intel, a drop. the move 2%. doc? >> yeah, and on 60 million shares worth, too, so, it's much more than normal, which is about 40 million shares worth. i think you wait and see if this one breaks 20 or not. >> all right, got a pop here for curly fridays. a woman in north carolina claims she's found a world

mike khouw? >> announced earnings, $1.48 a share, that matched the estimates, but their forecasts are lower. they get the bulk of their rev newspapers from japan. it's being hurt by a weaker yen. they're forecasting below the 661 that the street is looking for. >> and we have a pop for the human dog. out of the 80 pets in the u.s., it was bound to happen that one looked like a human. tonic is blowing up the internet with his disturbing stare. he is currently up for adoption at an indiana shelter, in case you are interested. and we noticed tonic looked strangely familiar. >> disturbing. oh. >> here. >> yeah. look. i mean -- >> you make a cute dog, tim. >> dogs are, you know, man's best friend, they say. >> all right, on deck this hour, one outspoken hedge fund manager tells us why he is zipping up his bear suit to protect his assets against a directiocorrec >>> plus, try your hand at gaming stocks. how can you play them. >>> and, later on, yelp's ceo joins us, first on cnbc to discuss earnings and

. >> and mike khouw, what's on your shopping list? >> i would just go with an etf like ewj with its exposure to brazil and maybe surprisingly, just on a cheapness basis and because i'm not trying to chase the richest stocks here, a name like caterpillar, believe it or not. >> is it time now -- >> for what? >> to start selling the high flyers? we talked about the shopping list, so, do you sell -- >> apparently yesterday was the time. i think -- >> yes, that's true. >> go ahead. >> if you thought the rally would continue and there are cracks in the rally, you might be questioning some of your holdings that are at all-time highs. >> good time to play that game. >> hold 'em or fold 'em. >> bingo. >> that is fantastic. >> first up, colgate, soaring to a record high. tim? >> this is a case where you fold 'em. the berkshire deal had a lot of people frothing up on these food or product companies, but at 21 times earnings, well ahead of its peers, people are looking at this. i would fold them. >> all right, next up, honeywell, surging to an al

. >> let's go to mike khouw. what is your reaction, mike? >> well, you know, the options were a little bit positive today. i wouldn't worry about splitting the stock. they're going to issue mini options. there will be a mechanism for retail investors to participate. this is the shareholders' company. and i think that's what they should focus their time and attention on, as well. >> okay, mike. it's been a tough time to make a macro call on the market. last week, kooelt aeith and den gartman squared off on how investors should be positioning. >> in the currency market, in the gold market, the copper market, in the energy market and in equities all tell me, better to go to the sidelines. >> now you're oversold. so, you buy today. if you believe the world's going to end because gold, oil and copper is going down, then, i think you're going to have more issues that i'm going to have going down that road. >> okay, keith, give us a trading update on how we feel today? >> today was better than yesterday, thank god. i mean -- this has been a good ba

mike khouw, what do you see in the options pits there? saw really big institutional one by two call spread. i think this was probably a big holder of the common, looking for a fast rebound. kind of a stock recovery strategy. they didn't spend any money for it, so, if the stock rallied, it would have helped them, but it didn't. >>> coming up next, he doesn't need a lifeline when it comes to stock picking. regis philbin tells us how he is playing the market right now. much more "fast" straight ahead. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a hea

mike khouw? >> yeah, the long decline in volatility in gold over the last year or so may be coming to an end. >> beekers? >> i started the show talking about gold. and metal so i'm going to book end it, say buy platinum. >> dan? >> pick a bottom in xco. >> karen? >> yeah, i've got nothing news since about 5:03 when i liked staples. i'm going to stick with that. >> consistency. doc? >> hartford, the insurance company. >> all right, i'm melissa lee. don't forget, our exclusive interview with meg whitman of hewlett-packard. back here again for more "options action" and "money in motion." mad money starts right now. i'm my world. you need to get in the game. stearns is going to go out of business, they're nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it hey, i'm cramer. welcome to "mad money," welcome to cramerica. my job is not just to entertain, but to educate. call me at 1-800-743-cnbc. how quickly can things turn? how quickly

mike khouw? >> procter & gamble, great company, but at 20 times earnings, no growth, not a great stock. >> tim? >> talked about the blood bath in petrobras. get into the stock for a trade. >> guy? >> bdx. >> karen? >> you have to take some profits in fifth and pacific. >> grasso? >> goldman sacks. performing to perfection. stay on board. >> i'm melissa lee. check out our web extra. we are trading your tweets. for "squawk on the street" back on here at 5:00 for more "fast." "mad money" starts right now. >>> i'm jim cramer and welcome to my world. you need to get in the game. go out of business and he's nuts, they're nuts! they know nothing! i always like to say there's a bull market somewhere. and i promise -- "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to save you a little money. my job is not just to entertain you but to educate and teach you. so call me at 1-800-743-cnbc. work that ne

so, mike khouw, what are the options trader s seeing for fb? >> the sentiment had been negative for so long but it started to turn around, about two months ago and has been pretty positive this entire month. the top five most active options today were all calls. the most active were all the ones that expired this friday and the most active among those were the 28 1/2s, paying about 14 cents. the stock could be above $28.46. and we saw further out people trading the april 32s. so, the sentiment in the options market for facebook is pretty bullish. >>> coming up next, the best way to play bonds right now as the great rotation picks up steam. and are hedge funds really the smart money? it's gary kaminsky and anthony scare scar moochie. they square off, right after this. scare moochie. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all o

mike khouw? >> bulls make money, bears get money, pigs getz slaughtered. hormel foods is richer than average. i'd sell it. >> meat space. doc j? >> guy adami is posting at the waldorf. third year in a row. i'm buying cim. >> anthony? >> great pronunciation. i like realogy. >> b.k.? >> if you get a good number, by southern copper tomorrow. >> guy? >> yahoo!, still going higher there, folks. >> all right, i'm melissa lee. thank you for watching. see you action," "mad money" with jim cramer starts right now. >>> i'm jim cramer. . welcome to my world. you need to get in the game. going out of business and he's nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to save you a little money. my job is not just to entertain you but teach and coach you. call me at 1-800-743-cnbc. so who brought us up here? after a day where the dow jones average came within 20 points of t

mike khouw, what did you see in the options pits here?st like the e kwity, there was a lot of volume in the options. they traded more than ten times their average daily volume by halfway through the day. a lot of calls trading, but many of those were being sold. one of the notable trades that i saw, a purchase of the may 42 1/2 puts. the stock was over 47 when this trade took place. somebody paid $2.40 for those. over 1,000 times. that's a bet that the stock could fall more than another 15% from where it was. of course, it did decline as the day progressed and the sentiment in the options market is bearish. the kinds of liabilities are very large relative to the size of this business. >> guy, you would actually go in despite the fear in the market. >> yaem. i think you were on, david faber had a great interview and it's -- well, it's a frivolous lawsuit. there's no -- i don't -- there's nothing there. other than the government wanted to take a pot shot at somebody. it's interesting, though -- >> are you in the conspiracy theorist camp? yo

mike khouw, how are the options traders playing this move? >> yeah, it was interesting.ut 3 1/2 times the average daily volume. taking a look at a sample of the volume on the ise, we saw that opening call buyers outnumbered opening put buyers by two to one. and maybe more interesting, we saw long-dated call buying out to the january 25 calls, paying 90 cents for those. that would represent an increase of 25% from the current share price. and also would mean that this stock would be trading above levels not seen since 2011. >> wow, and tim, you got back on the avon train? >> this is probably a bizarre move by myself, because i sold going into these numbers thinking it had a great run, it had been -- i think this is an absolutely a story that's going to continue to rebuild. barron's put a big article to me that was a sense that i want to fade the good news. but the jewelry, they're going to seek alternatives to this. this has been a problem for these guys. what's going on with their brazilian business, they are seeing inventories begin to come down. their sales in north am

defending the $24 billion deal to go private, saying it is in the best interest of shareholders, so, mike khouw, how are the options traders playing the take at this point? >> it's interesting, because normally what happens when you have these all cash takeovers, you will see options premiums begin to decline. you see a lot of people selling options, options that strike above the proposed sale price. what we've been seeing, the most active options today were the april 14s and more interestingly, the may 14s, we are seei ining opening buyers pg 25 cents. they are betting that the stock will finish above $14.25 or $14.20 in the april case. that is obviously a bet that the buyout is going to see a higher bid price. i don't know if that's necessarily going to take place or not. we are seeing those bets and these are cheap ways to make them. >> thank you for that, mike. >>> time now for pops and drops. pop here for wendy's, up 3.5%. tim? >> big article about new revamped menu, lounge seating for you to hang out, guy, all day long. this is reason to be buying wendy's. i don't think so. it's expensive