i want to look for a trade back towards that september breakout in the smh, back towards 90. i want to look to january expiration here. and so today when the stock was trading about 102.5, all-time high, i wanted to buy the january 102.90 put spread paying $3 buy one of the january 102 puts at $4, selling one of the january 90 puts at $1, that's how i get my $3, it breaks even down at $99, make up to $9 between 99 and 90. above 102, i lose the 3 bucks. when you think about it that's 3% i have 2 1/2 months to play out. the trade is setting up for a stock like invidia, which has been a massive sentiment leader, just cooling out a little bit, then i think it brings the sector down. >> the steepest single area of the equity complex as a subset of tech, to your point, which has been the best area, this is almost egregious one thing that we've talked about this, it's very hard to pick a top right? it's the only aggregate that has yet to make a high from its dot com era. nasdaq long ago exceeded its '99 high the tech sector long ago the semis are still not there. markets have a way

something percent in two months, this was a stock left for dead, the second largest holdings in the smhit's setting up for a period when we're going to get consolidation and possibly giveback >> intel is still cheap, when everything else is going to the moon the nxpi deal, that thing is trading over the deal price. qualcomm has agreed to acquire them for $110 per share, it's trading closer to $120 some people think they have to bid the price up or not enough people will tender, there's a little bit of wonkiness there. what was a blockbuster deal when announced over a year ago, now is not good enough >> a lot of these stocks, the options market would be perfect. >> that's exactly it etf, like the smh which is a low vol sort of instrument relative to the underlying, especially in nvidia, look at that breakout, i want to look for a trade back towards that september breakout in the smh which is back towards 90 i want to look at january expiration here. so today when the stock was trading around 102 1/2, at an all-time high, i wanted to buy the january 102 90 put spread paying $3 for that so

. >>> welcome back time for our move of the day check out smh, downmore than a percent after a couple of downgrades from morgan stanley samsung western digital getting a downgrade, micron also a loser on the day what do you make of this >> they're talking about limited visibility beyond q 1 of this year you had a buildup, a memory supercycle, a lead up to it, not just smartphones, also servers a lot of buzzwords we have been talking about. at the end of the day, you have the smh up almost 50% year to date massively outperforming the nasdaq, nearly 2 x the performance. this makes a lot of sense. a lot of the performance in the semiconductor space has been m&a driven we're getting to the end of the cycle of megadeals maybe one or two left. to me, smh, you ask these guys, i'm adding to this position on the short side i think this is one that is very vulnerable in january. i think investors will try to hold on until the end of the year, but this is one in january i think -- i expect outside returns from the downside relative to -- >> morgan stanley said prices started to reverse in the fo

47% year to date, versus the nasdaq up 27% year to date options activity was pretty hot today in the smhoot volume was ten times that of calls there was two trades that stuck out to me, one was short dated, one a bit longer dated they're both put purchases to open today there was a buyer, 15,000 of the december 1st weekly, that's the week from this coming friday, okay, the 102 1/2 put, those break even at 10220, 3 1/2% between now and december 1st. then a purchase of 10,000 of the february 100 puts, at $2.50 for those. those break even at 97.50 or 7% from the trading level i just want to go to the chart here we can't really see the out performance here but you can see this thing has actually gone kind of parabolic here that move in qualcomm has helped, that 30% rally in intel has helped nvidia making new highs seemingly every day has helped a whole heck of a lot. this is something that's getting extended here. when you look at this breakout level, that was $90. in the near term they're playing for a move back here and then in february they're playing for a move back here and then i just

i added to an smh, a semiconductor etf, short when nvidia turns, that will take a breather. >> the russell iwm, if they don't like -- if russell doesn't like the tax reform in the small caps, you'll see it in the iwm number two, we talked about for one the chance for tesla to trade to 280, 292 today. i still think it has more room to the downside. you mentioned the homebuilders i think they threw home depot into that mix, etf, i don't know, but -- >> there was research out about those guys that maybe amazon was gaining ground in their space. lowe's and home depot were down. >>> coming up, two huge afterhours moves, apple surging to a new high, the stock crossing $900 billion in market cap. ceo tim cook says iphone x orders are coming in hot meantime, starbucks scolding investors. we'll bring you the latest >>> plus senator chuck schumer will be here for his reaction to the gop tax bill and the fed chair nomination later, shares of tesla, having its worst day since july a big trade today raised a lot of eyebrows. much more "fast money" sll ahead. [vo] when it comes to investing, looking fro

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