mike kuo, let's start with you. you made it out here too. what did you make of tesla? a tesla to get here because i think even under the best of circumstances they can only make it about 200 miles. they're going to come out wp model x very soon. this represents an enormous opportunity for them. this is a company that i probably underestimated on many occasions thinking about what their auto sales would be. think about it this way. okay? the most profitable car company right now, normal car company is porsche. they do about a 20% net income margin. if this company does that and this car is a success, they could very easily justify the valuation they see here. you don't need to have revenues like ford motor company to get ato a ford motor company valuation if you're selling cars with higher margins. >> upsiding of the secondary overnight was good. zblelon musk had a big share of that. i think if he stayed away the stock would be significantly lower. he didn't. he bought a significant share. priced at 242 trading 243. i was in the camp that once it failed around that 290

so mike kuo, you're in austin. what do you see?> first of all, one week ago i shopped for a camera at amazon. i bought it at best buy. that was 200 bucks they got out of me right there. with the stock up a little over 20% we saw sellers of the september 36 calls. i'm betting these are people who are long the stock and think that there isn't that much more room to the up side. >> much more room to the up side. >> there is not much more. >> these options traders are buying expensive cameras. top notch. >> you hit the button with the little -- >> it shoots out the -- >> it explodes and film comes out. >> the film just comes right out the bottom. >> mike kuo, big spender. thank you. for more "options action" check out the full show, 5:30 p.m. eastern time on friday. coming up on "mad money" tonight, oil rallied more than 30% from its intraday lows just a week ago to close out august. cramer's talking energy exports and an investment from carl icahn with chen yooer. plus the ceo of ulta beauty on the company's bombshell earnings. coming

mike kuo's in austin with the action. >> disney saw a lot of activity today.you see the dividend options trading in apple czisny was the single most active stock option today and two of the surprising places we saw activity wrt september 115 calls, looks like we saw buyers of those paying about a dollar and a half targeting an up prove of about 5% through september expiration and also the january 120 calls which were trading for about $2.85, so buyers of those would be expecting disney to be up about 10% by january praix or back up toward those prior highs. and this can make some sense. after earnings come out, the premiums drop and now you can risk just 1 1/2% to make that bullish bet. >> all right. who would say buy disney? >> it's been the favorite in the space. up 30% up until yesterday. but i will say where we started off this show with les moonves cbs is really exposed to the super bowl. they get thursday night football. it was only down 5%. it was down the least in that group. it's been pummeled pretty much this year. but i think if you want to buy some

mike kuo's in austin with all the action.ike. >> 1 1/2 times the average daily options volume in gld, which is the gold etf. this etf's up about 4% from the lows that it hit earlier this month on august 5th. but today we saw a lot of bullish activity. maybe the first time we're seeing basically options traders betting on a rebound and they were buying the september 4th 112 calls. those are the weeklies that expire the first week in september. they were spending only about 20 cents for those, making a bet gld could be up another 4% in about two weeks. >> thanks for, that mike. for more "options action" check out the full show 5:30 p.m. eastern time on friday. still ahead, the chairman of microsoft sees big potential in one cloud-based company. he'll be here to tell us what that company is. you're watching cnbc, first in business worldwide. much more "fast money" straight ahead. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or je

mike kuo's at the smartboard with a clever way to get long. . >> you might think that selling puts is probably the craziest thing you could do after the market has seen the kind of volatility and rout we've just seen. 40 million options trading today and probably a lot of those people were buying puts. but we're going to examine today how you might want to sell one. why? because stocks are down and options premiums are up. one of the things you want to do obviously identify a stock that you want to own and the level you want to own it. the next thing is you're going to look because you're selling options. you want these things to decay relatively quickly. choose an expiration of maybe one to three months. and finally, you want to get a yield of at least 1% per month or about 12% annualized, which is commensurate with the kind of returns that you would expect if you're going to be long equities. and i'm looking at apple because today i was able to sell the november 92 put for a little over three bucks. and in fact some of you who are watching ha

build a position, long-term bottoming out. >> mike kuo. >> roll your hedges.olatility is back. >> all right. looks like our time has expired. i'm melissa lee. thanks so much for watching. see you back here next friday at 5:30 p.m. eastern time. meantime, don't go anywhere. "mad money" with jim cramer starts right now. have a great weekend. >>> 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 teach but to entertain and coach. so call me at 1-800-743-cnbc or tweet me @jimcramer. the dow dipped 12 points, s&p

energy stocks fell more than 3% this week and that's great news for mike kuo.e a listen. >> i think the simple thing to do if you have these things in your book, you're concerned about future declines, you can look out at the xle, and by the september 70-65 put spread paid 2.20 for those 70 puts, sell the other against it for 70 -- >> that trade is looking good. mike, what do you do? >> you have to stay bearish in the xle right here. there doesn't seem to be any support for crude. if the sanctions are lifting in iran we're going to see an extra half a million barrels a day. in a week we're going to see a million barrels a day. in a month. so, you know, look out below. i would actually just take the spread and roll down and out. october probably the 65-60. >> do you concur? >> yeah. short, stay short. christmas crude made a new contract low. something's wrong. >> all right, let's move on here and talk about dan's qqq trade. mike's not the only one profiting from the market sell-off. two weeks ago dan made a bearish bet on tech. take a listen. >> the trade that i

. >> mike kuo. >> roll your hedges. volatility is back. >> all right. looks like our time has expired. i'm melissa lee. thanks so much for watching. see you back here next friday at 5:30 p.m. eastern time. meantime, don't go anywhere. "mad money" with jim cramer starts right now. have a great weekend. >>> 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 teach but to entertain and coach. so call me at 1-800-743-cnbc or tweet me @jimcramer. the dow dipped 12 points, s&p rose.06% and nasdaq advanc advanced .32% and i'm glad to put the brutal volatility behind us for the weekend. to totally chaotic nature of the market left me thinking once again who can blame people for losing faith in stocks? yet here i am telling you yet again that if you protect yoursel

mike kuo, what kind of options action are you seeing? >> the options i think are going to go with pete on this one because the options were certainly a lot more bullish in target where we saw six times the average daily call volume. one of the notable trades that we saw was a purchase of 3,500 of the september 82 1/2 calls for about $1.120. so that's making a bullish bet that target would be up about 5% by september expiration, which would still be below the 52-week high. it is trading at about two turns more than walmart but i think the options markets still like target over walmart today. >> all right, mike. thanks for nap for more "options action" check out the full show 5:30 p.m. eastern time on friday. coming up on "mad money" cramer's got a triple threat of exclusives. the ceo of first solar on the impact. then skyworks ceo talks china. plus the ceo of hain celestial on natural and organic food. all this and much more next month on "mad money." what the traders are watching tomorrow. more "fast" straight ahead. >>> three huge exclu

mike thought. a small idea that could make big money. so to make a bearish bet kuo bought the october 1.20 strike put on the iwm. the etf that tracks the small caps for 4 15ds. to make money khouw needs the iwm to fall below 120 by more than the cost of the put, or below 115.85 by october expiration. but paying 4.15 just to bet against small caps? >> your only responsibility is to put meat on the table. >> so to cut his costs khouw then sold the october 110 strike put for $1.30 and created his put spread. and here's how it works. between the 4.15 he spent on the higher strike put and the 1.30 he collected by selling the lower strike put khouw cut the total cost of his trade down to $2.85. and now instead of the iwm to fall below the 115.85, khouw sees profits if it falls below 117.15 by october expiration. >> greek for lack of a better word is good. >> but there's a trade-off and by selling that put khouw has capped his profits at $125. since the time of the trade small caps have had a big move lower, falling 5%. now, "options action" faithfuls all over the world ju