a chart of potash is a gradual orderly bottoming out rotation.nding bottom, you can see it there on the screen. and so i would say even if this is wrong -- not necessarily that commodity thing. that's going to play out. but even if potash is not the right vehicle, i don't think you have a lot of down side. you have asymmetrical trade. a huge move but your down side as it muddles along. >> and 75 cents on an $18 stock over the course of just a month is a pretty decent rate of return and you can buy this again and again. >> say the word, asymmetric when you're selling a put. you can only take 75 cents. that doesn't speak to the opportunity of a chart. >> and talked about a gradual reversal and not something that will be taken out tomorrow. >> you don't like this at all. it sounds like you don't like this. that's all right. >> no, but i think we're talking about two different strategies. two different time periods and buying what you're selling. >> still ahead, oil just posted its best week since 2011, great news for all of our traders. we'll tell y

i think i'm going to take the other side. >> potash, i think a really simple way to handle this is toell the january 18 puts. you could collect about 75 cents for that. >> the stock hit a 52-week high today. carter? what do you think? >> i guess with everybody else, maybe. >> yeah, true. >> but, anyway, longer term, you stay. i don't know what you think about the options at this point, but it's a big bottoming out formation. >> we've collected most of the money that we can. i think we're still comfortable being short this probably for another week or so. i mean to dan's credit, though, he had said, why not buy a call, and it turns out with this sharp move, that probably would have been a better play. >> i think it would have been a much better play. this guy is saying this stock is going to explode. don't sell a put. >> 10% in a week, it did explode. that was a great call. and a great call on your part. >>> switching now to the bond market, dan thought the tlt could move higher. >> here's the trade, looking out to february, being a bit contrarian here, taking advantage of high option

>> i thought john said potheads, not potash, but be that as it may. coming up at the top of the hour, bill, on "power lunch" a show that you are very well familiar with, semiconductor stocks soaring in 2016. is it time to, yes, cash in the chips. ride the rally or do the opposite? great year for warren buffett. he made mother money than anyone else in america in 2016. we'll give you the stock picks of the ultra rich. home flipping soaring back, it says, to precrisis levels. plus, the best and worst celebrity neighbors of 2016. who would you like and loathe living next to? halftime report is back after this short break. hey gary, what'd you got here? is bad boy is a mobile trading dk so that i catake my tradg atformherever i go. u know that inkorswim seamlelyyncs across all your devices, right? oh, so my stom studies will go with me? anywhere you wt totoo! the market's hot! sy your platform on any dece witthkorswi >>> with being to "the halftime report." take a look a shares of kate spade halted right now on volatility after spiking as much as 6.5% on

. >> caller: potash? >> i think potash had a big run. we want to play ag, we play agco.rey in florida. >> caller: hey, jim, big fan. >> great. >> caller: my question today is on wynn stock. i was in las vegas. trend seems to be going downtown in mid level casinos. any room at this price? >> wynn, the problem here, even though we like steve wynn, we've been recommending mgm. he was on last week. i referenced that because i thought he acquitted himself quite well. national harbor, new casino, excellent. jeff in new jersey. >> caller: mr. cramer, how are you? >> i am good. how about you? >> caller: doing great. the one company that i'm very interested in is transocean. >> transocean does offshore drilling not onshore. that is concerning me. oil at $55 does not get new projects done. i think that rig -- >> don't buy, don't buy. >> sorry. billy in new york. >> caller: jim, how are you today? i have 600 shares of smith and weston. last month i was whistling dixie. now i don't know where to go. >> i think this stock is too cheap at $21. people feel there won't be new gun legisl

even if potash is not the vehicle, you have a downside.ou could get a huge move or muddle along. >> and 75 krepts on an $18 snokt course-of-over a monst a decent rate of return is there that's the wade, asymmetric. when you are selling a put, you can only take 75 cents. >> that doesn't speak to the opportunity of a chart. >> he also talked about a gradual reversal. not something taken out tomorrow. >> a thousand gallons. that's all right. >> i think we are talking two different strategies in a way, two different time period, we are buying what you are selling. >> all right. >> still ahead, oil discloses its best week from 2011. that's great news from all of our traders. we will tell you why when "options action" returns. >> after the call, we take a look back at our winning trade, last month, carter made a call on oil. >> i'm going to break a rule, which is usually means a breaking down turn. i want to be long crude and mike's got a trade on the uso. >> uso, you can buy the ten, 11 call spread. you can spend about 30 cents for that carter

. -- potash. this is bloomberg. ♪ >> welcome back to oliver: this is "bloomberg markets.". --scarlet: i'm scarlet fu. it is time for the options inside. >> joining me today is jim stricker of mk m holdings. things were joining us. with you a terrific chart of implied correlations. talk us through the chart. >> lots of talk about a paradigm shift postelection. dispersion. the question is out there, what does that mean? this is a graph of s&p 500 implied correlation. it has moved to cycle load. this measures the forward-looking expectation of correlation among the top 50 components of the s&p 500 by market cap. historically, if correlation is low, the inverse of that is dispersion. individual stocks, sectors are flying all over the place, moving on their own idiosyncratic facts. that, over the course of time, has been a very healthy environment, particularly for active managers. that is one way to put context to put context around what's been happening after the election. thatd that is an indicator stocks are overbought right now, the data with an rsi above 25. but this sugg