we'll help you with that with us tonight carter braxton worth, tony zhang and mike khouw. we'll show you where you can o first you have to know where you have been. carter, where have we been >> well, we've been in a moment of speculative exces that's been going on for a long time that was going on in fact in january and february, then the plunge and the ricochet. let's look at a few slides to try to prove it, so to speak the precondition of excess you see these bullet points here basically, s&p 500 before this selloff this week at an all-time high we know the price to sales, a fundamental on measuring the valuation, at an all-time high the s&p 500 is up 42% and the nasdaq up some 57% the precondition of excess, and then the next slide, divergence. as the market is making all-time highs, only 16% of the s&p constituents were making all-time highs index doing it the average stock in the s&p is 28% below its all-time high. that's not now that's on monday before we sold off. and then, finally, 46% of all stocks in the s&p 500 have no gains for two years. this is the precondit

. >> tony zhang points out why now could be a good time to dig into c caterpillar. and professor mike khouw is running through dueling options exercises on how to play nike going into next week's earnings. if you already own the stock or not, you can just do it. it's time to risk less and make more "options action" starts right now. >>> welcome. i love doing this show, but i've got to take an issue with that deep-voiced guy. he says barrel of cheeseballs like it's a bad thing. really come on. well, it has been a maybe not bad but tougher year for the consumer space the xlp consumer staples is up but just over 1% so it's underperforming the broader market carter worth, a man who maybe has seen a barrel of cheese balls in his day, says there could be an even bigger consumer crackdown ahead. carter, what are the charts telling you? >> a bunch of things going on. one thing to consider is that the dollar, which has been very, very weak, has started to stabilize. second only to technology, the staples sector is dependent on foreign sales. we know much selling has been don

. >> tony zhang?50 level here on earnings it's now trading below that both on an absolute and relative basis. i'm looking for salesforce to fill this gap down to the 218 level. i'm looking to sell a call credit spread to take advantage of that downside move. >> mike khouw? >> i think that the near term highs are in nike post earnings so i like calendar spreads there. to follow up on the jets trade, use callprri sead sk reversal to take advantage of the high implied volatility field for all investors. there's always a bull market somewhere and i promise to help you find it. kw "mad money" starts now hey, i'm cramer, welcome to "mad money. welcome to cramerica other people want to make money, you my job is to entertain and teach you. call me or tweet me @jimcramer we're almost done with this heinous month and it can't end soon

. >> but headlines aside, tony zhang thinks this old school auto maker has a better grasp of the future than many give it credit for he'll show you how to plug in with the right circuit breaker. >>> and in this market, elmer fudd might have said, be very quiet, i'm hunting yield but there's always a pesky welcome ba wab wabbit to beware of. >>> the home construction trade on fire this year with both the xhb and itb up double digits the rally comes as mortgage rates hit new lows and home bound americans tackle home improvement projects carter, what are the charts telling you? >> well, the question is at some point is a lot or everything priced in. it's been a great area obviously we know the story that's been in the news about refis and home improvement and we know the earnings have been great. but at some point sometimes an area of the market is full, is rich i think that's the premise here. let's look at a few charts the first is a two-panel all you're looking at is the home construction etf on the top. the bottom is relative performance to all consumer stocks, which of course all home

etf, jets and if one wants to pick a stock that's very similar, boeing also on the long side >> tony zhang250 level here on earnings it's now trading below that both on an absolute and relative basis. i'm looking for salesforce to fill this gap down to the 218 level. i'm looking to sell a call credit spread to take advantage of that downside move. >> mike khouw? >> i think that the near term highs are in in nike post earnings so i like calendar spreads there. to follow up on the jets trade, use call spread risk reversal to take advantage of the high implied volatility >> that does it for us on "options action. we'll be back next friday at 5:30 "mad money" starts right now - [woman] the following is a paid advertisement for the hoover smartwash pet automatic carpet cleaner. (upbeat music) real life is crazy messy especially on your carpets. whether it's kids, pets, or just plain heavy use your carpets get dirty, but cleaning them can be such a hassle, even painful. down on your hands and knees to spray and scrub or struggling with one of those bulky rental machines, up the stairs and all ar

etf, jets and if one wants to pick a stock that's very similar, boeing also on the long side >> tony zhang250 level here on earnings it's now trading below that both on an absolute and relative basis. i'm looking for salesforce to fill this gap down to the 218 level. i'm looking to sell a call credit spread to take advantage of that downside move. >> mike khouw? >> i think that the near term highs are in in nike post earnings so i like calendar spreads there. to follow up on the jets trade, use call spread risk reversal to take advantage of the high implied volatility >> that does it for us on "options action. we'll be back next friday at 5:30 "mad money" starts right now - [man] the following program is a paid presentation for the oxypure air purifier brought to you by nuwave, llc. asthma and allergies are at an all time high, and it seems to get worse every year. it's not your imagination. allergy season continues to get longer and more intense as temperatures rise, and airborne viruses are becoming an epidemic problem worldwide, with the changing environment, and unseen dangerous air po

we'll help you with that with us tonight carter braxton worth, tony zhang and mike khouw.where you can o first you have to know where you have been. carter, where have we been >> well, we've been in a moment of speculative exces