if the equity is too rich for your blood, mike khouw has an option strategy to parallel its plays. it's time to risk less to make more "options action" starts right now. >> welcome, everyone before we hit some of the trades, let's talk about today's market action. stocks ripped higher to close out the fourth week of gains the dow jumping more than 800 points on pace for its best month since 1976 the s&p 500 jumping about 2.5% and the tech heavy nasdaq leading the gains climbing nearly 3%. carter, what do you make of the rally, especially in the face of some pretty brutal earnings reactions and big tech >> right i mean, one of the things about having a particularly good month, which we did, is it almost always particularly follows a bad month, the name of the game when i have client conversations, one of the things that keeps coming up is this, listen, we're in the homestretch, we know there is seasonality on our side, we know there is year-end rally potential, post election potential, and there is nothing to hit us now. earnings are out of the way. fed we kind of know they'll do a

here with us carter worth, mike khouw and our special guest mike sutland. we will begin with quick thoughts on the week it has been a crazy week, carter. >> one way to decide whether any day or week or any period is bullish or bearish, you look at the high, low, and close lower high, lower close, bearish week that was simple. >> brian, what was your take >> i think when you look at the market, yeah, there was some whipsaw action as we close out the week i think really it's been all about the ten-year treasury right now and where that's going. basically every 1% tickup in the ten-year note, that's worth about 7 or 10% downside in the market so when the ten-year sort of ticked above 4% the other day, the market got real scared we saw s&p trade down to 3,500 then all of a sudden the ten-year reversed itself and the market found some ways to rally and now again we're back at that 4% level 4% super critical on the ten-year that's going to govern the market going forward that's about a high back in 2010 if we break through there,see close it could get scary the t

weary main -- >> dennis. >> i'm going with the young gun mike khouw i like his exposure to microsoft.u're catching a lot of heat. >> uup short dollar. >> there it is that does it for us here on "options action. we'll be back next friday at 5:30 p.m. eastern. do not go anywhere "mad money with jim cramer" start 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 find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job is not just to entertain but educate and put days like today in context call me 1800-743-cnbc. tweet me @jimcramer. four

with me tonight carter worth, the chart master, mike khouw before we get to tonight's trades let's get a quick assessment of the week's overall market action. carter, what's your take >> in many ways it was more of sort of the same yields were up gold down though recovering a bit. and s&p putting on a good week, and yet here too we're basically the same level where we were in june not much happened. it's going to really get down to whether the earnings can deliver next week. >> dennis? >> yeah, nothing like a 2.5% broad market rally on a friday to make everybody feel like it's summertime even though it's not. an options show the vix is still priced to 30 the market was up today. the vix was pretty much unchanged down about 60. implies a 2% move per day. that's what we've been getting options are pretty fairly priced right here >> mike, you getting those summertime vibes, too? >> no, i don't think i am really look, first of all, we had so much bearish sentiment coming into this week i think, you know, just anything that didn't have bad news in it was likely going to create some support

the options play ahead here with us tonight, carter worth, mike khouw and brian cutland. quick thoughts on the week it has been a crazy week carter >> one way to decide whether a day or week is bullish or bearish, you look at the high, low, and close low high, lower low, lower close, bearish week. >> that was simple ryan sutland, what was your take >> i think when you look at the market there was whip saw action and somewhat to the bearish side, but really it's been all about the ten-year treasuries and where that's going because by my calculation, every 1% tick up in the ten-year is 7% to 10% downin the market when it ticked up the other day, the market got real scared we saw s&p trade down 3,500. then the ten-ier reversed itself and the market found ways the rally, and now we're back again at the 4% level. 4% super critical on the ten-year that's going to govern the market going forward, because if you look back, that's about a high back in 2010. so if we break through there, see a close of 4.25, it could get scary. the ten-year moving up towards maybe 6% could be scary

fear not because these chip makers pain could be your gain mike khouw is here to show you how to turn choppy outlook into smooth sailing for your portfolio. captain mike, take it away >> captain, i like that. i'll have to share that with some other people. so thisis an interesting situation, right, because the semis as a group are down about 40% since their highs earlier this year, significantly even more than the s&p has declined you know, if you think it's so bad it's good then you might take a look at how these companies are looking relative to their trailing and their originally forecast earnings, and if we look back about 20 years on a multiple basis the semiconductors as a group are trading pretty close to their cheapest valuations, but one of the things i would point out and i think it's important for people to remember this is that cyclical businesses often do look cheapest right before things turn south, and that is because people are still working with their operating assumptions for how these businesses were going to do, and those are what's changing. and that's essentially

the action and the options in the arc innovation fund pointing to fresh lows ahead for that etf mike khouw over 200,000 contracts, the ninth busiest etf option today. the trade that caught my eye was a purchase of the october 31st puts 3,300 contract, and what's notable about this trade was not its size there were a lot of big trades in ark today but actually the severity of the move they are anticipating these options expire a week from friday and in order to be profitable the ark etf would need to decline more than 13% from where it closed today. >> wow i'm curious to get your thoughts, dan, on kathy woods' letner conjunction with carter's call because it does seem like she is asking the fed -- i mean, this would obviously help her fund tremendously if they stop hiking rates. >> other he's the thing, right she keeps doing that that's been her stance all year long so they felt that way when they were coming off a zero interest rate bound so she keeps doing it now when we're going to get above 4% after the next meeting or in and around there again, yeah do, her stocks need it, but here's t

the strategy and options play straight ahead here with us tonight carter worth, mike khouw, and our special guest. quick thoughts on the week because it has been a crazy wek. carter >> one way to decide any period or day look at the high and the close. the lower low, the lower close, bearish week >> all right, that was simple. what was your take >> i think when you look at the market, yeah, there were some whips action and somewhat bearish as we closeout the wick week i think it's really been all about the ten-year treasuries right now and where that's going. basically by my calculation about every 1%, so when the ten-year sort of ticked above the market got real scared we saw s&p trade down and all of a sudden the ten year reversed itself and the market found ways to rally 4% critical on it ten-year, i think and that's going to govern because if you look back that's about a high 2010. so if we break through there, it could get scary. it'd be scary for the market >> yeah, 4% really marked the danger zone for the markets today, mike. that's when it sort of turned around when we broke through

mike khouw has the action. >> yep so meta was fifth busiest single stop option today.d over 4,000 contracts an the busiest among those was the weekly 130 puts. we saw over 14 to you of those trading for for 3.44 to tim's point, i think what is going on buyers who are pressing their bearish bets trying to limit their risk because the stock is looking mighty cheap at this point the last time we saw valuations in meta like this was the fourth quarter of 2018 and the company has nearly doubled the revenues in and 50% more eps now than it did then. >> mike khouw, thank you for more "options action" tune in friday. coming up, should you role the dice on the casino stocks. we'll be joined by bill hornbuckle "fast money" is back in two. the new iphone 14 pro is amazing. the camera is incredible. and you'll get our best deal. nice, but i can't accept it. unless every business gets the best deal. on every iphone. uh, actually... we already do that. the plumber with the ascot! big bjorn, little bjorn, too! the caterer who really cares. every business should get the deal! we make

. >> unh mike khouw >> the guy asking the question said forever, which implies a long time.google hasn't been around that long i like john deere. that was found in the 1837 when you're doing calls you don't want stocks that are going to explode to the upside and you don't want things that are going to go out of business, either. that's also true >> our next tweet says with the continued strength of the dollar, how about a update on gold carter, how about it >> dollar's cracking here. extended bad week. what was up besides biotech and energy gdx, up 7.5% gold bullion also up. i like gold. >> our next viewer asked, what do you think about cash secure puts in amd? forward eps is 15 times. mike >> i like it this is one of the situations where you're looking at a name, the price has been significantly depressed and implied volatility is higher. so both of those things setup nicely, but the chart doesn't look so good, although i'm not the right person to ask about that there's somebody else on this panel who is >> who would that be raise your hand, please. >> i'll take a shot at t

mike khouw has an options strategy to parallel its place it's time to risk less to make more options action starts right now. >> let's talk about today's market action because stocks ripped higher to closeout the fourth week of gains the dow jumping more than 800 points on pace for its best month since 1976, and the tech heavy nasdaq leading the gains climbing nearly 3% carter, what do you make of the rally especially in the face of some pretty brutal earnings reactions in big tech? >> right, i mean one of the things about having a particularly good which we did is it almost always follows a particularly bad month that's the name of the game. when i have client conversations one of things that keeps coming up is this, hey, listen, we're in that homestretch. we know there's seasonality on our side, post election potential, and there's nothing to hit us now. earnings are out of the fed. fed we know they'll do a bit more, let's run this thing okay, but that's not an investment thesis. that's just a maybe. >> so you're not convinced >> no. >> scott, what about you >> i'm not particularly

. >> mike khouw?lling vertical spreads with limited risk. >>> that does it for us here on "options action. have a great weekend back here next friday, 5:30 p.m. eastern time meanwhile do not go anywhere "mad money" with jim cramer starts -- right now. (dramatic music) - welcome to today's program. i'm milton lawrence and with me is dr. wendy walsh. our topic on today's program is the potential health risk individuals and families who have served, worked, or lived on marine base camp lejeune, or marine corps air station new river in north carolina. scientific and medical evidence indicate

with me tonight, carter worth, mike khouw, and a special appearance by denis.ck assessment of the week's

the options play ahead here with us tonight, carter worth, mike khouw and bria

. >> but one is much more bullish making a big bet mike khouw is here with the action >> tesla alwaysiest single stock option or on most days. it was today in the first place over apple trading more than a million contracts above what apple did actually. there was a lot of weekly activity on the volatility but the trade that caught my eye was purchase of the jarn 2024, 350/360 swall fred and they tradeid for 1.47 and a half and over 37,000 of them trended by the end of the day that is a premium out lay that tesla could regain the april highs which is 365 or slightly above. but to dan's point, i think one of the things that we might be looking for in the next set of 13-fes is to see whether a big shareholder sold their position. that is a way to reure some of the losses if it bounces without taking any more risk to the down side >> thank you, mike for more options action tune to the full show tomorrow at 5:30 p.m. eastern time. >> coming up, not so chill netflix adding a ad supported tear that comes with commercials but it will give it the leg up in the streaming wars and. >>> big bank

group of stocks are betting the market could be in for a surprise dovish turn from jerome powell mike khouwn mike >> so we're look at xli, that is the industrial trade, at five times the average daily call volume at 100 strike call options we saw over it 25,000 of those trading for an average of 45 cents a contract and buyers are betting that xli could rally over the course of the next two and a half weeks. but buying cheap call options is a hedge against short positions which is another possibility. >> so there was something interesting that happened today on the government's tax receipts and it was quite a bit lower than people thought. and so the treasury department will have to issue more debt and people thought that was bond bearish so i'm sure spy and qqq. >> thanks, mike. for more "options action" tune into the full show on friday at 5:30 p.m. eastern time up next, final trades. you ok,? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [

. >>> switching gears, the oil stock now up 77%, mike khouw has the action. >> right now implying a move averaged over the last eight quarters calls outpacing puts and it traded at about 1.3 times the average daily call volume. the weekly were most active. but we saw a buyer of a 1,000 of the december 120 calls paying $1.60 and betting that the stock could rally 12.5% or month by december expiration. >> exxon-mobil, guy. >> i think it continues to go higher crude to stay at this prices for next year and conico and chevron will go higher so stay with the name. >> thank you more more opt"options action," e in, when is that, guy? >> 5:3torr0 moow >> see you then. >> up next, meantime final trades ♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house. >>> welcome back to "fast money. another check after the bell tonight, amazon off the lows of the session. the cfo saying aws retch slowed at the end of the quarter and it could carry into

and options traders are betting on more game mike khouw joining us. >> netflix implying a move of 12% with the moves we've seen over the last eight quarters however, some traders are betting on a much larger move. 300 calls. we saw over 8600 of those trade for over $1.34 a contract. buyers of the calls are betting netflix could move more than 20% to the upside by the end of the week a move of that magnitude hasn't been posted since october of 2016 brian? >> thank you as always, for more "options action," tune in 5:30 at eastern time >> i am long netflix very interested to see the ad-supported business. you know, everyone is looking for a million user, additional users subscribers. i don't know if that's so much matters this time. i feel like this transition in the business is really important. and it's not just a one quarter thing. so i am long going in. about as cheap as it's been. >> around 21 times forward so certainly attractive value territory. i'm long as well and i do think that the commentary is no longer about subcontraction i think it's going to be about traction in the two

let's find out more about it with mike khouw, the "options action." >> tesla options right now implyinge week. that's greater than the 5.5% that the company has averaged after the last eight reported quarters, although last quarter it moved about 10% a lot of those bets are betting that the stock is going to move lower. the most active contracts for the october 220 puts we saw over 70,000 of those trading. buyers of those are betting that tesla is going to trade below that by at least $8.50 by 8% or more by the end of the week. >> all right, mike, thank you. for more "options action," be sure to tune in to the full show as always, friday at 5:30 p.m. eastern time >>> all right. coming up, is target a bulls-eye buy? why analysts are throwing this retailer in their cart >>> plus, coming up, a winner no matter what. amazon prime keeps climbing, even if the economy don' sest,o says your call of the day. that is next when we're back ♪♪ ♪♪ ♪♪ be ready for any market with a liquid etf. get in and out with dia. - [narrator] if your business kept on employees through the pandemic, be ready for a