mike khouw, what did you see? ruling which looked favorable for merchants and bad for visa both sold sharply. their numbers were pretty good. part of that ruling was that the existing rules are going to stay in place. a lot of options traders stepped in start buying short dated calls even up to the 630 strike. it's a cheap way for these guys to make a quick bet that the stock could recover. it did but not that much. >> coming up next not so fast, brian kelly, you made a bearish call and that's seeing gains since then. stay tuned. ♪ ♪ [ 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 on thinkorswim. from td ameritrade. "first day of my life" by bright eyes you're not just looking for a house. you're looking for a place for your life to happen. >> not so fast brian kelly. our traders are quick but not

so mike khouw, why don't you kick it off for us? >> sure.ally been bearish, but i like brian and carter taking a contrarian view here. it does look like it's protected. >> scott nations? >> is a put play the best way to be slightly bearish in netflix? we'll talk about it in the 101 web extra. >> and brian stutland. >> fear has left the building, the vix has fallen hard, the market has rallied. i would be a buyer of the market right now. >> brian, thanks for joining us here in new york today. looks like our time has expired. i'm melissa lee. for more options action, check out optionsaction.cnbc.com. see us back here next week for more options action. don't go anywhere. >> announcer: the following paid program for the shark sonic duo is brought to you by euro-pro. [whirring rapidly...] >> both imitate: zzt zzt zzt... [whirring...] >> zzt zzt zzt... [whirring...] >> i have never seen anything like it! >> oh, my gosh, i love the shark sonic duo! the carpet's like new again! >> my kitchen floors are cleaner than they've ever been. [whirring...] >

so mike khouw, why don't you kick it off for us? >> sure.ly been bearish, but i like brian and carter taking a contrarian view here. it does look like it's protected. >> scott nations? >> is a put play the best way to be slightly bearish in netflix? we'll talk about it in the 101 web extra. >> and brian stutland. >> fear has left the building, the vix has fallen hard, the market has rallied. i think it will continue over 1650 in the s&p. i would be a buyer of the market right now. >> brian, thanks for joining us here in new york today. looks like our time has expired. i'm melissa lee. for more options action, check out optionsaction.cnbc.com. have a great rest of your weekend. see you next friday back here. >> male announcer: the following is a paid presentation for 10-minute trainer, brought to you by beachbody. do you want results like this? then get ready, because for the first time ever, 10-minute trainer is available for 50% off the price. >> hi. i'm mark steines, coming to you from hollywood, california. we would all love to lose weigh

so mike khouw, why don't you kick it off for us? >> sure.een bearish, but i like brian and carter taking a contrarian view here. it does look like it's protected. >> scott nations? >> is a put play the best way to be slightly bearish in netflix? we'll talk about it in the 101 web extra. >> and brian stutland. >> fear has left the building, the vix has fallen hard, the market has rallied. i would be a buyer of the market right now. >> brian, thanks for joining us here in new york today. looks like our time has expired. i'm melissa lee. for more options action, check out optionsaction.cnbc.com. see us back here next week for more action. don't go anywhere. "mad money" starts right now. >>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. people want to make friends. i'm trying to make you a little money. my job is not to entertain you but to

mike khouw tells us how to play it when we come back. (announcer) at scottrade, our clients are always learning more to make their money do more. (ann) to help me plan my next move i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." what do you drive? i drive a ford fusion. who is healthier you or your car? i would say my car. probably the car. cause as you get older you start breaking down. i love my car. i want to take care of it. i have a bad wheel - i must say. my car is running quite well. keep your car healthy with the works. $29.95 or less after $10 mail-in rebate at your participating ford dealer. so you gotta take care of yourself? yes you do. you gotta take care of your baby? oh yeah! she's still th

let's go to mike khouw here.en shots of the live web cast from the yahoo! conference call. mike khouw, larry mentioned the alley bab ba call, 60 billion in valuation. >> it's p interesting because when we look at the options market, generally speaking it's the options premium drop as stocks rally. we've seen the exact opposite lately in yahoo!. what that suggests to me is that a lot of traders who are looking to make bullish better or willing to commit less capital to the trade. that would suggest they have been substitute is long calls for puts. that's probably the best way to player it here. maybe sell some lower strike puts in case the strike pulls back. i think we'll see some of that premium coming out on these earnings results. >> looking at the stock it topped two months ago. where are people playing these levels then? as you say topped somewhere around 27. >> the 27 strike near dated was quite active but we actually saw some activity going out to october and on higher strikes up into the 30s. for example t

. >> perfect segue way to mike khouw. what do you make of that? >> that's certainly way way to play it or trade vix futures. i think the simplest way that retailers should look it is is looking at puts. these things are relatively cheap. you can benefit from rising volatility or put insurance on your portfolio that's direct. if the market declines you're buying insurance and i think that's probably the simplest least expensive way to make that way. one other thing i would say is that instruments like hyg which is the high yield atf, it's possible equities could remain strong but it's hard to imagine that credit is with it. >> for more on what to expect on the fed tomorrow let's bring in john hilsenrath good to have you, especially on the eve of a fed decision. what's likely to happen tomorrow, john? >> i think there are a few things. the action actually starts at 8:30 when the commerce department revises its gdp numbers and comes out with second quarter numbers. that could change the landscape in ways that people aren't expecting. i think the fed

j., everybody on the desk including mike khouw, bullish google over facebook.ad killer. the fact that it's $100 less the fact that they went from mono to -- >> doc, are you going to buy one of these things? come on buddy. i know you like google. >> if i were buying a tablet. i have no need for it but i would buy it. >> you're the big apple ecosystem guy. >> exactly. >> so this doesn't work -- >> i got to have this. i got to have a pc. i can't run what our programs are on an ipad-type device. >> let's move on here and switch gears, get a jump start on fast forward trades and get a preview of amazon earnings out tomorrow after the bell. so jon, back to you, what are we expecting? >> wall street is looking for 6 cents a share. that would be a 23% rise in revenue, strong guidance what the street wants. colin at bgc has been bearish. he notes the profits ahead. it's not clear amazon is planning to deliver those any time soon. international sales look to be the main question mark. that's nearly 42% of revenue. other companies had trouble delivering international numb

mike khouw? >> i would fold 'em. carter bronxton's advice but i started to think this seemed rich. you can follow carl icahn but remember this guy is lower the stock. start exiting. >> breaking news. josh? >> breaking news here on boeing. let me give you the headlines. a japan 787 dreamliner that left logan heading to tokyo is now returning to logan. the plane received a maintenance message error indicating a mechanical issue. the plane is returning as a precautionary reason. no info on how many people are on board. the plane anticipated to land between 6:00 and 6:30. >> we got your first move tomorrow when we come back. stay tuned. she's always been able to brighten your day. it's just her way. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or

traders guy adami, tim seymour, karen finerman anthony scaramucci and mike khouw. apple, broad bond akamai. we're taking position ahead of google's secret product event tomorrow. our tech story is apple on the rise up almost five percent. earnings and revenue topping. the real story here iphone shipment of much better than expected, 31.2 million phones shipped in the quarter. guy? >> that's the key. you nailed it. we talked about it on june 28. we said you have a nice definable bottom. i don't think it would trade that low today. i thought the move we would going to see, what happened we talked about it last night. you want to split hairs, average selling prices of all four major devices were lower but gross margins were better. i think this quarter was good enough. again, i think people will look $146 billion or so in cash 36% of their market cap. that will come back into play. again, using that june low as your bottom it's okay here. >> i agree with guy. he was right on that iphones were the thing that was making -- it was sort of a relief value. the iphone numbe

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but mike khouw is looking at one trade that could be an overnight sensation. he'll break it down.x pharmaceutical shares jumped 50% this week. so why do options traders see even more gains? it's a sweet drug deal that only scott nations can explain. the action begins right now.

. >> mike khouw, what's your take on this? >> we've got the market going up to record highs. it may not be to the lows that we saw before but it's actually pretty close. i think this is a good time to do it. exactly what karen was doing before. she was buying stocks when they did dip. we are buying protection when it dips. i think that's the move here. >> exactly, mike. when they throw out the baby with the bath water. we talked about it at the end of june. we said gold for instance. but let's take those home builders. when you are talking about toll brothers at 30 bucks a share is it any wonder it's 35 today? they sold it down to 30. that's the screaming opportunity that karen talked about, the explosion in volatility that you got out of your defensive puts. that's why you sold. we said both you and i on that night, that sometimes the thing that feels like it's all wrong is what you have to do you did it kudos to you. >> maybe the dingo eight your taper. >> the fed's chairman's speech gave the investors the green light to jump into stocks. we saw that today. we are joined by

our traders tonight, guy adami, tim seymour, brian kelly, karen finerman and mike khouw.the big story. hot stocks of july. some big names were a cut above the rest. we're breaking down the reasons for why it could continue for tesla, trip visor apple netflix as we enter the

our traders tonight, josh brown, brian kelly, anthony scaramucci and mike khouw. bullish break out. 500. could the market be headed for an even bigger breakout? most importantly, how should y

traders guy adami, tim seymour, karen finerman, anthony scaramucci and mike khouw.nd, akamai. we're taking position ahead of google's secret product event tomorrow. our tech story is apple on the