mike khouw joins us for the action. >> about 2.4 times the average daily volume it is implying a movepany has averaged over the past eight quarters. now bullish bets narrowed out bearish and this is longer the stock by about $5.5 million worth of the stock most active call options were the december 15 calls, over 1900 were trading at about $1.72 and buyers are betting that the stock could get above that $50 strike price and obviously there are hoping for a bit of a rebound after earnings >> tim, what do you think? do you like lyft >> i like uber more than lyft. i think both of the companies have had exposure too reopening and cyclical and labor cost. think lyft is losing market share. enough where it is costing the stock and the under-performance. if anything, i realize that the uber business model which is one that seemingly pushes oust profitability is the one that is so much more interesting again the super app that has not just grocery deliveries but the purchase of drizzly. everything that would be transported, i think they're going that way and it is a much bigger opportunity so

'tis the season for power outages and being inside mike khouw is looking for a way to leave the lightslio. hey, mike. >> we are looking at generac it's a large cap name. we frequently end up talking only about the megacap names $28 billion company that is actually a popular pick in the hedge fund community, on the street generally i mean, this is a name that's well loved by the street right now, the average price target is probably about 20% higher than it is, and there is a good reason for that it's seen exceptional top-line growth this year, looking at maybe 48% top-line growth. close to 30% last year full year 2022, probably looking at just under 30% growth so this is one of those names that might fly under the radar if what you're usually looking at is the microsofts, alphabets and amazons of the world something i wanted to get into, because i know we've used some structures consistently on this show recently because of where implied volatility is, and, specifically, i'm talking about call spread risk reversals, this is a situation when we buy an upside call spread and sell a downs

crypto rallying as coinbase gears up for earnings tomorrow after the bell mike khouw has the action ons from the fast line. mike >> right now the options market is implying a move 10% higher or lower after they report earnings not much of a history here for the country as a publicly traded company. the calls were outpacing the puts by more than three to one among the most active options were the weekly 360 calls, trading for 14.5 bucks overall we saw bearish bets. 50% seems like the options traders are betting the results will be good tc for more options action, wah the full show 5:30 p.m. friday up next, final trades. >> announcer: options action is sponsored by thinkorswim by td ameritrade >>> final trade. tim. >> walmart reports next week >> karen >> yeah, i went long realreal, it's like i'm buying it here >> dan >> jetblue will fly high >> guy >> caterpillar, sister >>> "mad money" with jim cramer 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, and i promise to help you fin

spac sparking optimistic bets that another deal might be in the works for wynn so let's bring in mike khouwk down the action. what did you see here today? >> hi, courtney. what we saw was called outpacing puts by 3 to 1 on about 70% above average call volume and the most active calls expire this coming friday nearly 5,000 of those traded for an average of about 1.11 a contract and buyers are risking a little over 1% of the stock price on best that the stock rally could continue because the upside break even on those options is up a little bit over 3% by week's end >> interesting stuff thank you, mike. let's trade it dan, what do you make of the action in wynn >> i think mike lays it out clearly. you're not risking a lot but i don't have a lot of time to earn that out so if you think there is other pid bids or like the change that might be happening in the story as we get into 2022, if you want to define your risk, i would look at longer dated calls or call spreads and i know that these guys are looking at this chart and saying it is about ready to break the down trend that doesn't look too

professor khouw explains mike. >> this is something we talk about once a quarter i think it's important you can use options as a mechanism for hedging your portfolio. obviously we've had strong support. what are the things we want to think about when we're hedging first of all, when you're hedging, it is a form of insurance. you spend premium to mitigate down side risk here's the thing, if you spend that premium and lose that premium, chances are things are generally good you don't need to collect on insurance. suggest whatever you are insuring is doing well the other thing is, you want to hedge when you can, not when you are forced to do so. so you don't try to buy insurance on your house after a fire has started, you want to buy insurance when everything is good finally, you want to balance your risk tolerance with the expense of hedging i was looking out to january at the 380, 350 put spread. when i was looking at that earlier, you would spend a little over $5 in premium to buy that spread which is 1.25 of the qqq. nasdaq is up 26% year to date. if you analyze that, 1.25%, if you ana