we'll allow it mike khouw, your thoughts. >> one thing i will say is that i think, you know, we don'ts shaking up with delta variant and all of that i like disney. i like disney plus i like their diversification of business las vegas sans had a long period of so that might be an interesting one. >> i certainly think that you have a little bit more leverage from las vegas sans than you have some online betting thrown in there i do think that has in my opinion a little more upside than disney. >> mike, just going back to you in terms of how you might structure a trade here, what would you do seeing that vol volatility is so low and these are definitely reopening plays >> they certainly are, although i will point out that a name like las vegas sands isn't going to enjoy the kind of low options premiums that we see in spy options, in q options and things like that. so actually the trade that tony was talking about earlier in mohawk is the kind of trade that i would use if i was taking a look at las vegas sand a way to offset the fact that implied volatility in that name is a little bit hi

mike khouw has a way to use a major upcoming catalyst to make some cash. we're taking a look at alibaba here. obviously what has been pressuring this company all of the chinese companies really is probably familiar to most viewers but we should probably go over it one more time just to be sure. we're talking about china's security and regulatory scrutiny on a lot of these companies basically forbidding them from taking on new users, the painful pockets of antitrust penalties is something that has been basically brought into the horizon and we have a lot of potential further restriction that is we could see in addition to those financial penalties and in the case of baba, you know, they have actually been investing in trying to grow their user base and one of the potential down sides of that is that you could actually see ebitda or eps decline year over year those are m soft risks when we look at alibaba this is a company with 40% margins, that's obviously tremendous, we have high anticipated revenue and eps growth of 29%-ish year on year on the top line, m

>> carpets and flooring with mohawk i'm buying a call debit spread to play for upside. >> mike khouw. you can and not when you have to and i like q put spreads and cover the options you have in stocks. options you have in stocks. >> that's it for thid to fit "options action. weekend edition is up next 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 ♪ >> that's it for this edition of "options action. ♪♪ ♪♪ ♪♪ (dramatic music) ♪ (stu) i really can see the difference. i can see this hair coming in. i have hair on my head. i can brush my hair now. within two months, i've gotten my hair back. it's just like a second chance on life. ♪ no hormones, no surgery. ♪

for one name in this group let's find out who and why mike khouw joining us with the "options action. what is the bet, mike? >> we saw a lot of bets on the volatility today but the one we're going to highlight is in micron technologies which saw 1.7 times of the average put trading and that was the result of a single trade. somebody was rolling out the july 75 puts out to the september 75 puts and bought over 12,000 and spent $3.42 blowing out the july 75 they had for about 13 cents and so this is an out lay of $14 million bucks in premium, but when you see this kind of volatility sometimes you see it fall through in the options market and that is what we're seeing here. >> mike khouw with the options trade there. nadine, your thoughts. semiconductor, micron, what have you? >> when you look at results, 50 basis points of their 240 basis points of taiwan semi was due to effects so i way wave that off that is not a fundamental problem. so i'm more with dan here. as i think of this as a time to re-enter i actually like the smh a little bit better than the single stock. i'm looking at a 6

we heard from the rest of the guys and gals sets up extraordinarily well speaking of mcdonald's, mike khouws what did you say >> i was taking a look at mcdonald's and as guy pointed out there was enthusiasm here and this one, too, hitting a 52-week high and bullish trades outpaced bearish ones by more than 2 to 1. the option says market implied the stock moved 2.9% after they report earnings and that may not seem like a lot, but this isn't a stock that moves a great deal on average and it's only moved 1.7% and the options that captured earnings were the july 30th weekly and those are the ones that expire two weeks from tomorrow we saw those trading for $2.65, and what wooe e're seeing is the making a bullish bet and given the fact that options premiums are relatively low going into the catalyst, i think this trade macks a lot of sense. >> what do you make about the bullishness surrounding the fast food trades? >> i think mcdonald's in particular, you look at that consolidation since april and it's been trading at 230, 238 or so the weekly is kind of binary that's not kind of my jam. you get

alibaba having a bit of break down this year let's get to mike khouw with all the action m mike. >> we more than 4 to 1 we saw a lot of activity, for example, in the july 30th, 215 strike calls, and then looking out to the 215 and 217 1/2 calls that expire in august, those would capture earnings the most interesting trade was flagged by karen and i took a look at it this were the january 2023, 285 strike calls, so well out of the money. over 2,200 of those traded for $15 apiece each contract represents 100 shares or an outlay of $3.3 million in premium betting. this is a stock that could rally 50% or more in the next 18 months. >> wow, so karen, what did you make of that trade when you saw it >> i was excited to say for options -- or yeah, to whoever it was doing it today, mike khouw, that's extremely bullish. you know, it has to be 300 before you start making money, so you have 18 months for that to work. i'm kind of hoping that it works sooner than that, but it's a very bullish trade i'm long, clearly it's been painful for months, but i'm staying long i'm willing to ride out the risk

let's bring in mike khouw with the setup on one of the titans. >> so i was taking a look at apple.rage options volume because it trades so many options already. it represents 4% of the all of the options traded in the united states today and we saw calls outpacing puts by more than 2.7 to one riepgts now the options market is implying it could move higher by about $6 or 4% of the stock price given the $2.5 trillion market cap that would be a swing of about $100 billion. and the weekly 155 strike calls, over 112,000 of those traded for just under $1.10 and they're risking less than 1% of the stock price making a bullish bet that the stock could raleigh by the 155 strike by more than the dollar that they paid. >> karen, which earnings report are you looking at most closely? >> well, google is my biggest position so i'm looking most closely at that. but i have to tell you, i'm not optimistic about a trading well, given it is up 11 and change percent for the month. and nothing has happened so i'm just afraid all of the good news, and there will be good news, is already priced in. i'm n

that's a lot to unpack, but mike khouw is going to take a shot at it it's time to risk less and make more "options action" starts right now. >> coke out with quarterly results next week. like the consumer sibling pepsi it could be poised to pop. carter worth, explain. we were talking about in the opening trade. just a little more on the go drinks >> that's right. well, thank you, deirdre i think the set-up is quite good in the sense that we're looking for a macro catalyst or back drop that's positive and we have that there's a very defensive tilt to the market right now interest rates are down and defensive areas of the market like utilities and staples acting well. two, we have an event, earnings and three, just as you said, pepsi popped on the earnings let's look at coke the first is a two-panel chart look at coke three-year chart, weekly bars and the bottom panel is what i want to focus on the relative performance to clorox, colgate and pepsi, that is starting to curl up that's impressive, developmental and we think it's important now, the next chart just coke itself the set-up he

mike khouw is plugging into a car race, the one name he's betting on to take the checkered flag it is time to risk less and make more "options action" starts right now. >>> it seems like a big show, right. it certainly is. let's kick things off. because look at that a multi-trillion dollars countdown. some of the names that are reporting next week are earnings in fact, check this the five biggest companies in the entire market on deck to report next week and some of the stocks sitting at all-time highs an the chart master said these heavy hitters could test this record rally carter, why do you say that? what are you watching? >> sure, so just for a fact, what we know is that it is fairly rare for the five largest tocks to report in the same week and the joint history of these five, apple, microsoft, google, facebook, amazon, only five other times in ten years have they reported in the same week but holding that side, what it really means is it all depends on how these stocks do let's look at a few statistics an then a chart or two the first slide, this is telling. now, it is a very st

have noticed an increase in the use of options on leveraged etfs there's a reason why carter and mike khouwoo let's talk about hedging methods that aren't just going to scramble somebody's brain at this point >> yeah, we've seen a big uptick in interest in these levered etfs and there are good reason for that to use those things as trading instruments. by using leveraged etfs you can sometimes get a form of optionality. take a look at sqqq that is a levered inverse etf on the qqqs. over recent years we've seen a huge upsurge in options volumes, we've seen some big options volumes in conventional etfs but not the same growth over that period of time so one of the important things i would point out is that when people start using the leverage etfs, and think they maybe i can add even more by trading options, but the fact is that options on levered etfs are considerably more expensive. and in fact there is no free lunch, there is no way essentially to get extra leverage without really paying for it by way of example, i would encourage people to take a look, for example, at, say, the august 9 c

the big move setting off a blizzard of bullish activity let's get to mike khouw to break down the actionre than four times its average daily total options volume in fact, in terms of contracts traded, it was the most active single-stock option traded today. they had good results off the earnings, and the big rally the stock has seen since that time the most actions options that expire next week, were the august 6 weekly 105 straight calls over 49,000 of those traded for an average of $2.15. you could see the stock above 107 and change by a week tomorrow. >> that's quite a move. >>> earlier today, guy you added me about amd you've been on this, rightfully so. >> what do they call that thing? the at sign? you took great glee when we were having an intel conditions -- conversation, which apparently we're not supposed to have, and you said, what do you think. i remember, i had lisa sue will come on and assuage the concerns of investors look at this magically it happens i will say this, continuingically trades 44 times normal involve i'm inclined to take profits on a day like today melissa le

let's get to mike khouw with more on that mike, what are you seeing?amount of options activity across the retail space. nordstrom was certainly one of them we also saw that in gap stores, kohl's, targets, macy's, all of these were seeing a lot of activity nordstrom's saw a big put sale on 2.4 times the daily options volume but that put is more of a bullish. some people are expressing a great deal of distress, willing to get long on the stock at a lower level and of course targeting earnings, which are going to be coming up on august 19th there you saw somebody buying 3,000 of the august spreads. so that also expressing a bullish outlook going into earnings, trying to take advantage of today's weakness and implied volatility to try to position themselves for a potential rebound. >> mike, thank you very much let's kick this around in trading. guy, i want to go to you >> $31 is a really interesting level. you'll remember, courtney, i think it was december when nordstrom said the huge move from 14 to 32 pretty much in a straight line. since then we've been

mike khouw in the house, dan nathan will join us in moments tomorrow on "fast," major buzz kill for one't quite giving up hope on it yet. we'll find out what it is and why they're so bullish and turbulence ahead, americans getting ready to take fight for the long holiday weekend top analyst hunter kay says airlines will not be able to handle the surge in demand we'll get the outlook for the industry this year a special edition of "fast money" coming up at 6:00 p.m., we're answering all your burning trading questions, so if you've got them, tweet us at cnbc "fast mone

mike khouw in the house, dan nathan will join us in moments tomorrow on "fast," major buzz kill for one name in the retail space today. some traders aren't quite giving up hope on it yet. we'll find out what it is and why they're so bullish and turbulence ahead, americans getting ready to take fight for the long holiday weekend top analyst hunter kay says airlines will not be able to handle the surge in demand we'll get the outlook for the industry this year a special edition of "fast money" coming up at 6:00 p.m., we're answering all your burning trading questions, so if you've got them, tweet us at cnbc "fast money," we might answer them on the air. we start up by firing the "fast money" time machine. you might remember in december, we asked traders to pick the acronym they thought would rule in 2021. look at how they've done tim's acronym has been the strongest, that would be rise, rio tinto. that was up more than 21% so far. dan here chose abide, which would be amazon, alibaba, ipoc, the spac, clover health, disney, expedia, that's up 5%. and rounding out the acronyms, karen's, wtf,