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tv   Fast Money  CNBC  March 6, 2014 5:00pm-6:01pm EST

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though? >> there's only one way to find out. >> how much does it cost, jane? >> it costs about $10. but if you call now, you can get a second one for the same price. >> jane wells. thanks very much. "fast money" is coming up in a few seconds. melissa lee, bacon bowls? >> absolutely. all the way. we have an exclusive with the ceo of amd, talking about the graphics card. that and a lot more. >> all right. from bacon to bitcoin. melissa, over to you. "fast money" starts right now. live from the nasdaq market site in new york city's times square. i'm melissa lee. our traders are tim seymour, dan nathan, karen finerman and john nagarian. the dow up 177% since the lows of march 2009. bank stocks, top high. we tell you where the financials go. to the desk. ahead of tomorrow's jobs report, is there anything that can
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derail this massive bull run? what a question here. but there's a lot of chatter today, especially aboutç liquidity being the primary force behind this. it's not growth. it's not optimism in the markets. it's companies themselves. >> i agree that a five-year anniversary, people should be thinking about where we are in the duration of this market and where we are on the calendar because i think april will be rocky. i don't think people have enough protection. volatility is too cheap. you take advantage of that. pmis around the world, i see commodity prices around highs of august of last year. i think it can go higher. demand is coming through. tomorrow's number is a kitchen sink number. there's nothing left they can throw at us and say that it's all about the weather. you get a free pass. i would like to see strength. but i don't expect it. >> there's no reason to go down. the numbers are too dirty to interpret? >> i don't think people need to see a good number tomorrow. >> i said i didn't think we need
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to worry about the numbers at all tomorrow. that doesn't mean we don't need to worry about anything. we are both saying the same thing. tomorrow's number is going to be chockful of how weather-affected jobs and whether people can travel from city-to-city to do job interviews as well as all of the rest of it. i think that number is not going to be what we're going to trade on at all tomorrow, çmelissa. i think it will be all about other numbers that are coming our way. not about the jobs market. >> i'm wondering if there's some ukraine potential stuff to come. it's really surprising to me that that hasn't been anywhere since monday. >> not only that. a week ago, ukraine was not on the headlines. we had the volatility. and u.s. sequities seem like a safe haven. what has not come back, russian equities. >> they haven't. >> and the dax. it's only made up germany, the largest trading partner of rushg sha.
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they only recouped half of the losses. it is out there. there is a little fear. just not in u.s. equities. look at what happened to bonds since monday's close, they've gotten nailed. what was up today? gold up 1% today. you wouldn't have thought that. about ready to break out. and the vix, hanging out at 14. the s&p is making new highs. vix is not back at the lows. there are little pockets of potential fear. if that number is hot tomorrow, the vix is going to go down. and you have ukraine again. >> how much is the dax because of valuations in the u.s. and other developed markets? if you seek a safe haven, maybe you go to a marketç that's not fully valued. >> the dax is valued 17 1/2-times. so is the s&p. valuation-wise, dan brings up a good point. i've been playing russia for a long time. the way we hedged the books is the dax because one, germans don't like equities that much. it's a fixed income market.
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volatility tends to be cheap. the banks to that part of the world. and germany has been pragmatic in their political relations with russia. is it a good play? yeah. energy prices, too. look at commodity prices. i think oil is something that can continue to trade higher here. and you're right. the headlines, today, if you listen to people in that part of the world, they're sending you headlines, saying not only do we see russian troops coming into the bridge part of ukraine, but a referendum vote that could happen in ten days. and who is going to supervise this vote? no global regulation bodies. >> and becoming constitutional. >> define where the constitution is. there is -- he's citing constitutional law and international law. and i'll bet you can't cite me anything except just perception that this is a break. >> that's all that matters, though. >> well -- >> this is a serious political event. our secretary of state isç ove there, in kiev, in this region.
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i think for some reason, risk assets are not pricing a whole heck of a lot of risk right now. >> the bottom line here is what? we're at a five-year rally, right? five-year point. so, you're saying, april could be a rough ride ahead. we're all saying that ukraine could be more of a headline risk in the days to come. where do you go? >> i think if you look not monday's volatility was russia-specific. but the volatility three weeks ago was u.s. growth specific. you've gotten a couple opportunities to say the numbers have been neutral to bad to choppy. if we're coming out and you're seeing a pickup in u.s. growth, you want to own the sectors that have not reformed. it's about valuations. it's not me saying i think stocks have to go down. i said there's some things to worry about. but i love the minors here. i love putting stuff back into play in industrial metals and places they'll get exposed to pmis. >> and you don't love what? >> i don't love some of the consumer sector. a lot of the times that people
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are going to talk about restaurants. i don't think 30 times for a leisure dining name is smart. >> want to go to dom chu. news on safeway breaking. >> we told you about reports that safeway and servers were getting together forç a deal. the private equity company says they're going to take over safeway, one of the biggest grocers in america. and what the terms are about that $40 a share that they were talking about in terms of the deal size. that would make it worth about $9 billion. the about $40 is subject to a little interpretation because it's $32.50 per share in cash. the rest of the amount is going to be made up of proceeds from possible future asset sales and future dividends as a result of the deal. that may be one of the reasons the stock is selling off in the aftermarket session. there's a little, perhaps, some clarity that's desired about how this $40 per share bid is going to be fully made up.
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again, just $32.50 a share is crash. back over to you. >> thanks, dom, for that. we've seen the big players, big box retailers. the targets, walmart, the dollar stores, going into consumables. >> the supermarket, you wonder how able they are to pass costs through. this one was almost entirely arbs. there's nothing less than delayed gratification. that sounds like part of the package here. i wouldn't get involved here on this one. >> options activityç here? >> no. for the most part, people were not speculating that there was going to be a white knight bid that would be higher. i agree with karen 100%. the dye had been cast. and that's why exactly, as dom said, they're selling in the after-hours. it's not a $40 a deal even. and it was priced at $40. why would you hold it? back to the markets here. the major indices are up big.
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a number of notable stocks have lagged the top three underperformers poised to break out is carter braxtonworth. what have you got for us? >> three, big names. a big energy name. a big financial and a big consumer name. let's have a look. the first is a comparative chart of s&p 500 versus occidental petroleum. and you see the very, very high. and the spread is epic. it's underperformed by almost 50%. here's the absolute chart of occy. a well-defined trend line. and a wedge that's built here, where you're into a lot of tension now. and the presumption is this is going to play catchup with the s&p. said differently, this is a bettezç bet than the s&p. next one. five-year chart. morgan stanley, a major
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underperformer. s&p, up 150% from the 6th of march '09 to now. and here's what i'm seeing in morgan stanley. a beautiful double-bottom. a nice trim line over the last year and a half. and we're toying with the prospects of finally getting out of this range it's been in. and here, too, a lot of asymmetry relative to the market. finally, here's kohl's. and kohl's has been sideways for five years. here's the absolute chart. this is incredible. basically, a major asset, without any character or said differently equilibrium. and all periods of equilibrium comes to a an end. the standoff is going to be up. and a breakout from what has been a five-year going nowhere kind of situation. >> carter, for the first two, are you saying they're buys? or relative to the s&p, a trade only? >> all three buys, absolute but
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relative. we think the market has limited upside, if any at all. it's asymmetry. you trade off -- eke out gains in the s&p? sure. but youç trade off downside ri. the individual securities, have limited downside risk and all sorts of upside, if they play catchup. >> quick question on kohl's. you said all periods have to come the to an end. how do we know it's time for it to end, versus it being a ten-year period? >> or worse, maybe my point is maybe it's going to break out through the bottom. >> what are you telling us? >> exactly. so, that's the hard part. it can be artistically quite wrong. with the way this is acting to other retailers, we see a lot of pressure within consumer discretionary names. it's acting quite well. if you look at the day-to-day price line correlation, the presumption is the end of the
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equilibrium. >> carter, thank you for coming by with those charts. >> carter makes a fantastic and compelling argument. the spin-off of occidental california is 10 bucks a share. you have buybacks coming from the company. you see stocks that are interesting. but thereç isn't something to pivot that point. >> the financial sector did not sit out this rally. mike mayo will tell us which bank stocks have room to run. plus, move over smartphones and tablets. amd is making big bet on gaming consoles. the ceo will join us to explain why.
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♪ for tapping into a wealth of experience. ♪ for access to one of the top wealth management firms in the country. ♪ for a team of financial professionals who provide customized solutions. for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more.
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to nbcuniversal's coveragens of the biggest loser
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olympic winter games ever, with the most coverage of the most events on every device. and the most hours of streaming video on the nbc sports live extra app, including the x1 platform from xfinity. comcast was honored to bring every minute of every medal of nbcuniversal's coverage to every screen. so what's next? rio 2016. welcome to what's next. comcast nbcuniversal. ♪ dan's song. today's top trades. pandora shares plunging to disappointing audience growth numbers. the company is going to stop providing monthly metrics in may. >> the last point is really important. stop providing monthly metrics.
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what do investors not like? they like clarity. >> retailers don't give monthly numbers, either. >> here is a company that's up 200% last year. it's up 40% this year. it doesn't take a lot of bad news to send the stock down. valuation is really tricky here. it's a momentum name.ç buyer beware. >> cumulus is moving to pandora. pandora is talking about slower penetration into cars than the street was expecting. you saw cumulus trading up. the valuation metrics are so different. >> pandora is not being used as mump in cars. is traditional radio being listened to, instead? >> they have a very strong grip. and the metrics are so different. you look at free cash flow and
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things like that. >> for pandora? >> for pandora. they have probably 60% of the radio market in the u.s., which deserves a premium multiple. but what are people paying for the service? >> nothing. i mean -- >> you have to listen to commercials. i don't. i pay 3 bucks a month or something. i love pandora. >> you're the man. >> big spender. >> it's a fantastic product. gap shares falling after hours. a decline in february same-store sales. is this all the weather? >> i think the magnitude of the myth is so enormous. particularlyç in the gap. down 10. i think they were looking up one. i'm inclined to believe it. we'll see another one that we own, children's place, also terrible numbers today. but in the places that were warmer, they did fine. i'm inclined to believe that gap is -- this is weather-related. i wouldn't be -- if you love the name and have been in it, don't
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be shaken out by this. >> we hear about the weather. these store sales are disappointing. are retailers set to make this up in march? >> i don't think they need to. >> this is the 2014 numbers. >> i think that a lot of the sales that were lost in the weather are lost. they are not coming back. >> no pent up demand notion. >> i think the street is looking forward this year. that's behind us. we're going to look at multiple going forward. nike, the athletic apparel giant out with a soccer cleat for the world cup. mark parker sat down with sara. i cannot say anything about that. >> i got it in japan. >> a lot of bling. >> it's japanese. i always know which one is mine. nobody else has gold. >> unless you're in japan. >> yeah. >> nike. >> çso, this is an exciting da
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for nike and for mark parker. obviously, the new soccer cleat. that raises some questions. obviously, everyone and their mother wears running shoes. wears basketball shoes. i asked the ceo of nike, what kind of market is there for soccer when it comes to the soccer shoes. here's what he told me. >> the football or soccer as we call it in the states, is a huge market. it's a different market because you can't wear football cleats on the street. the cleated football market is quite significant. football is the largest, most popular sport in the world. what we see with football is a market that is highly energized, excited to see new innovation coming. that's what we've got here, just in time for the world cup. >> obviously, the reason the world cup is so important is because 3.2 billion people tuned in last year. it puts the super bowl to shame. it's reaching consumers in basically every, single corner of the world. that's why it's such a big deal for nike.
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when it comes to you guys and trading the stock and investors and some of the questions, what's the u.s. market like? that's their home market, the most important market. i asked him about the state of the consumer, and how much of the recent softness because of the weather. here'sç what he said. >> this has been a tough winter. that said, i think consumer is building some confidence back up. we're seeing it in our position in the u.s. feel good about the momentum we have in the market. it's our biggest market. people wonder can nike continue to grow in this market? i feel confident that we can. >> so, obviously, pretty optimistic. and the question, china, because that's been a key. it was a rough year last year, in terms of china sales. new orders are showing some promise. he does say that things are look up. but not exactly. back to rebound mode. there's some red flags in china. >> is there a sales bump expected from the world cup? >> there is. and they've seen that before. and jpmorgan analysts say adidas
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and nike should see a sales bump in the fourth quarter and into next year. obviously, that's an important question because they spend so much money on new market, innovations and advertising. if you read the analyst notes, they are looking for this. and adidas came out earlier this week profit. 17% below consensus estimates. adidas, the positive story there from the ceo is we're looking forward to the world cup to help offset this. >> any sense that where these guys are going toe-to-toe. these are the only two players i think matter in thisç space. everybody else is trailing and from a valuation perspective, the most interesting thing. any sense on whether adidas is forcing nike's hand? >> you don't think under armour is a threat? >> i asked him if it's a threat. we're going to address that. >> these other guys are so far ahead. >> for the world cup, it is nike versus adidas story. adidas is an official sponsor, nike is not. nike has more teams sponsored.
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but adidas has spain, germany, argentina. and it's been suffering in europe. western europe was a bright spot for nike in terms of earnings. interesting to see those two battle it out for the soccer market in europe. >> thanks for coming by. sara eisen, her exclusive with the nike ceo. dr. j. will give us unusual market activity. and mike mayo joins us live to talk the five-year anniversary of the big bank rally. is he sticking by his long-time favorite?
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♪ investors may see bank stocks as bargains. many of the bank names are on a tear this week. citi at a five-year high, in fact. mike mayo joins us here at the nasdaq market site. great to have you with us. how do you view banks. several of the large banks trade above value. where are we on valuations? >> as you've been talking about on the show, stocks are at an all-time high. but banks are stillç 40% below their all-time highs. what you see in the recent rally is that banks have been laggers that have been catching up. i don't treat this as one size fits all. i have some of my favorite names. and some of my favorite names are still far below their all-time highs. >> i'm curious.
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that sort of assumes that they should reach those peaks again when the rules of the game are vastly different from when they did hit the peaks. so, do you -- you are assuming that they can assign those levels, in terms of the stock, even with the new -- >> the game has changed. >> exactly. >> the game has changed. number one is regulation. what i call big brother banking. or the government is regulating banks more than ever before. banks were issued for sharers. in terms of citigroup going from 50 back to 500, that's not part of my thesis. and you have general oversight, altogether. and it's a sluggish environment. i know stocks are at an all-time high. just in quarter, capital markets are a little weaker. loans are actually down so far year-to-date. all is not completely rosy. i'm picking and choosing more. >> when you're on aç conferenc
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call, you can hear management bristol when they call your name, mike mayo, you're next. i'm happy you're on. one thing to the plus side, technologically the banks are operating efficiently than they were in the past. can you return on equity? are those achievable with the negatives of increased regulation and you know mediocre economy? >> and the negatives lead to the worst revenue growth this decade than the decade since the great depression. revenues are still sluggish. necessity is a nice driver for banks becoming more efficient. and you are seeing almost every large bank has been efficiency plan. and i think for that reason, banks can achieve roas, back over 1%. roe, return on equity, it's going to be less than it was before. that goes back to big brother banking.
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there's a silver lining in all of this. deleveraging has made the banks much safer. if you have safer banks, even though they're slower growing, you can have higher valuations overtime. >> i want to get to your picks. morgan stanley. carter braxton said the chemicals line up for a good performance. >> morgan stanley is my number one pick. it's worked out well the last couple years. i don't follow technicals. but fundamentals, they're doing what's right. half the company is wealth management or what we call brok brokerage. they have the highest brokerage margins and they raised guidance a couple months ago. they are shrinking fixed income trading. i will say, a large investor, two days ago, for the first time, used brilliant and james
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gorman in the same sentence. >> you sound shocked by that, by the way. >> this is someone said they were leaving morgan stanley a few years ago. that was deliberate. morgan stanley was derisking. if you were in trading and structured finance, you didn't want to stay there. now, that you see the benefits of a deposit franchise, you see one of it go from one-third to one half, you say that morgan stanley is in the right position for today's more regulated environment. i'm not calling them brilliant. but he's hadç the vision. he's had the vision to position his firm to benefit in the new era. the new game-changing era. >> your topic is morgan stanley. i want to go back to the flipside and where banks are in valuation. which banks do you think are overvalued right now? >> i think the market is pricing in expectations for rate increases and loan growth when we haven't seen it yet. and if it all happens,
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fantastic. but if you don't have that play out, then stocks such as bank of new york, which has not restructured the way they should, could be vulnerable to having lower stock prices. i'm going to bank of new york's annual meeting. >> i'm sure they're delighted. >> to ask basic questions. it's been six years since your merger to form bny mellon. why do you have the lowest margins in your peer group? and i'll go to citigroup's meeting and say, good start with the restructuring. but what have you done for me lately? i have a whole list of questions. but asking polite questions but pertinent questions. >> i hope you come back after you go to those meetings and tell us how it went. mike mayo. let's trade the bank stocks here. tim? >> mike talked about the yield curve. this is the other part of the story i was looking at. if you get rates going back to 3 1/2, i think you can get by
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the early part of next year, 2015. money center banks make a ton of sense. go back to valuation. certainly, bank of america, at 0.8-times book to me, that's where you want to be. jpmorgan, these are the trades that make sense. >> karen, ccar results are out march 25th. are you expecting anything different? >> not really. let's get unusual activity. investor mania, in wwe. what did you see? >> wwe, the world wrestling entertainment company. back in november, strong activity. back in november, this thing was averaging 4,000, 5,000 contracts in a month. today, it traded 15,000 contracts in 1 strike, the july 40s. that's after a 10% run-up today. people are betting on upside in this stock. they've been richly rewarded from november when it was 14, to today when it's 29. i see no reason to jump off the train. i rolled up with them. >> you're looking at unusual
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activity in chip space. >> amd, we're going to have the ceo on. and four puts. don't take the things so negatively. it could be a hedge against a long stock. dan nathan can barely hold his excitement. >> it's obvious. >> we have that onset interview with the president of amd. the company is banking big on the return of gaming consoles. plus, teen trader weekday four. we're talking to one guy who started in the game at the tender age of 8. and got into options at 14. the technicals on our "fast money." move over dr. j. and dan, max is heading your way later in the show. curio ty tdd# 1-888-628-2419 can take you in many directions. tdd# 1-888-628-2419 you read this. watch that. tdd# 1-888-628-2419 you look for what's next. tdd# 1-888-628-2419 at schwab, we can help turn inspiration into action tdd# 1-888-628-2419 boost your trading iq with the help of tdd# 1-888-628-2419 our live online workshops tdd# 1-888-628-2419 like identifying market trends. tdd# 1-888-628-2419 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how.
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welcome back to "fast money." we're back at the nasdaq market site in times square. advanced microdevices is banking on gaming consoles. sales are up year over year. have fallen slightly. with us is the ceo and the president of advanced micro devices. you reported earnings not too long ago. and you said that gaming console chips will be down. part of that is seasonal.
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more gaming consoles sold in the fourth çquarter. how do you get around the seasonality, especially as you feel the pressure from the p.c. market? >> we're building to transform different amd. no doubt we have to build out the high-growth markets. and those are the ones that are going to create longer, stickier, more strategic revenue flows for amd. we used to be in the p.c. consumer segment, where every six months, you're running. you're running. on this one, what we're trying to do is create these long-term strategic relations, like we did with xbox one and microsoft. like we did with sony. those are the plays that are going to create the long-term transformation to amd. >> in the meantime, until you transition fully to this new model. is that to be expected? >> yes. there should be some seasonality. as you build in more of these semicustom wins that we're creating with other players, that's going to layer in a set of revenue. you could see us flowing somewhere in the future where
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50% of our revenue is booked at the beginning of the quarter. remember, i game from ibm. and that transformation, we went into services. services was a huge driver. this is an opportunity for amd to create long-term strategic relationships with our partner. >> shareholders areç concerned. susquehanna called it the decline of the p.c. market. bernstein issued a note saying the fourth quarter was worse than the third quarter when it came to the p.c. market. and the third quarter was atrocious. they said, bernstein, that the p.c. market appears to be collapsing. they're worried that even though you're making strides in the gaming console parts of the business, you're being dragged down by the p.c. part of it. can you address that? in this transition, that's your core business. >> no doubt. when i joined amd 2 1/2 years ago, 96% of our revenue came from p.c.s.
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we embarked on a three-step turnaround. to become more structures. high-growth products, which we did last year. we saw the revenue grow at 38%. good momentum. 30%, plus the revenue, coming from those new growth segments. and ultimately, over time, 50% of our business in p.c.s. i think what people have to think about is we were over indexed to consumer entry notebook. tablets over that hard. if you think about where we're going this year, we're diversifying not only in our total business but the p.c. business, goingç after commercial. that's been a stronger spot. going after the p.c. desktop. >> why are you going after declining business when intel's already there? >> no. those are green field opportunities for us, melissa, in terms of where we've been centered over consumer, on that treadmill design, six months. here, go into commercial, in the
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commercial space. what you can capture is 24 to 36 months of revenue. those are unique opportunities. and i said in the last earnings call, we quadrupled the number three to four in the commercial segment. >> i have a quick question. in terms of the new graphics card that's in demand, is that going to hurt your console business because the demand is being sucked up by bitcoin minors. or is that a pleasant sort of kick to your business? >> i think it's a nice adder. no doubt because of the architecture and the powerhouse of technology that we created at amd, the scaleable, searching the memory across that. that's why our solution is better. they love it for that mining. i don't know how long that's going to last. but when a blue bird comes to the window, let him in. >> great to have you with usç rory read, ceo of amd. >> you had a blog post today on
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amd. what do you think about the stock? >> the stock trades really well in their quarterly earnings reports. and in the q4 report, they lowered guidance for the q1. maybe the guidance is low enough. to me, i'm staring at it. i bought a little stock today. there's a good shot in the next month. you have the stock attempting to fill the gap in the q1 report. have you done your taxes yet? h&r block is calling all hip st steres to file their tax reports. it was just released right after this break. stay tuned. ♪ for tapping into a wealth of experience. ♪ for access to one of the top wealth management firms in the country. ♪ for a team of financial professionals
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who provide customized solutions. for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more.
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let's get a quick earnings alert with dom chu on h&r block. >> america's biggest tax preparation company. tax preparers reporting a loss. $199 million/ç but here's the rub. the numbers are skewed. and this is skewed to the irs delaying the opening of its
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e-file system until january 31st of this year. revenue on tax returns prepared are going to shift to the current quarter. the third-quarter results not indicative of the performance for the year. you have to wonder, with these results and more competition from do-it-yourself, like turbo tax. >> did they affirm the year or no? >> they did say that the majority of their business is done in this kind of time period. and it's going to shift to the current quarter. we have to see how that quarter shapes up once april 30th shapes up. >> dr. j., i don't know if you have a trade on intuit or h&r block. >> there's a reason warren buffett tossed this aside. that's because of the payday loans they were making. they would give you a loan and it was close to 100% interest.
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now, i would be a buyer of intuit than h&r block. >> oil isç up. that's good for oil stocks. transocean trading at multiyear lows. dan's at the smart board. explain for us. >> this stuck out as the s&p is making new highs today. transocean, as you said, look at this chart right here. it looks like a disaster. the options trade 2 1/2 times daily volume. what stuck out to me was bearish activity. there was a seller of may 46 calls. but there was a buyer of the may 41 puts. and when you look at this chart right here, here's the one year. in stark contrast, this thing has stuck below serious prior support. when you look at a ten-year chart. the ten-year chart, it is banging along the bottom here. the break-even on the may 41 puts is below the ten-year lows. and here's the last point i want
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to make when the buyer of those puts was probably looking to make. this is the price of options on volatility. it's still relatively low here. in some ways, this could be a better way to press a short to the down side, to find your risk, rather than pressing the short in the short stock position. >> what do you make of the fact that they are selling rigs in one of the worst markets in a long time? i agree the chart shows that there's decent support on long-term basis, buying companies at this level, when you have a 12-month, to 24-month workout, seems like dead money. >> that's a good point. you were talking with occi with carter, i would take a shot on a game like this where you have potential catalyst for restructuring. a lot of restructuring going on in the space. at ten-year lows, maybe you take it the other way and implied volatility is cheap. maybe you find your risk, playing for a bounce. >> options action tomorrow. check out the website. still ahead, our teen trader
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week rages on. max has been trading since he was 8 years old. the stock market prodigy joins us on-set after this break. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ ♪
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♪ it is day four of confessions of a teenage trader week. another flashback for you guys. by now, you know the "fast money"ç traders weren't doing trading as teenagers. most were goofing around. dan was on the couch. john najarian were shining his trophies. >> those are football trophieses. >> our next teen trader started trading at the tender age at 8 and options at 14. let's bring in max ganik. the first to join the statistical society of analysts. >> thanks for having me on. >> what stocks do you like right now? what's your top position? >> first to off, i have a s.p.y.
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may call calendar. i'm long the may 190 call. and every week, i'm selling the weekly 190 call against it with the goal of paying off that call over the course of the next five or six weeks. i think that the market is going up for a few reasons. first off, the seasonality charts point to a strong march and april gain. also, the bollinjer bands on the s.p.y. six-month chart point to a target of 189.50 to 192. on the weekly chart,ç the mac is now positive. that's awesome for a bullish trade. and there's a few stocks i like for a market rally. amazon, i think is going back to 385. i could buy the april 375-385 call spread. i like f.a.s. for that one, i would buy the
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stock, no option trade on that because the options are expensive on 3x stocks. and facebook. facebook just broke out of a bull flag. i think it's going around 75 or 80. the way i would trade it is buy a 70, 80, 90 call fly. >> you're 16 years old. >> that's right. >> how did you learn about -- i mean, stocks are different themselves. but options are a whole other ball game. >> at first, i had books and videos. almost all of my knowledge is based on trading. >> practicing. >> and experience. >> the way to actually understand -- like the market is through trial and error. that's the best way. >> speaking of the error part, what's the worst trade you ever made. >> apple earning call. i spent way too much on it. it was a july 2012 earning. i thought they would beat every, single çquarter. now, to the e.t. trade. i was dead wrong.
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absolutely dead wrong. >> i love that he's defining risk by doing that bull call spread that you talked about in amazon. he's hitting time decay. that's what people don't understand about options. dan and i have to live with it every day. but to actually take advantage of time decay, selling the short dated options against the longer dated options that he holds. congratulations. >> thank you. >> that's a great lesson to teach. and it's obviously served you well. >> thank you. >> max, your mom's in the audience with you tonight. have you been busted for staying up late trading? >> trading. >> doing a your homework. >> especial lly binary options. >> long-term game plan here? is this what you want to do for a living? >> yes. at first, i want to do stocks and option trading. someday, open up my own fund. >> did you want to be a baseball player or a doctor? >> yes. around 5 years old. >> that's juvenile.
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>> you saw "wall street" the movie? >> yeah. since i was 6 years old, i was like, i'm going to go to wall street. >> melissa lee was in "wall street 2." >> that's true. >> "money never sleeps." >> what's interesting is starting at 8 years old, doc and i were decaying assets. you're long the call. we're short the put. >> what's the next trade on your radar that you're looking at but haven't bid on? >> i would say a baidu call. their earnings were solid. and i was long them march the 200 call. but the problem is, they sold off. and i felt, all right. i sold it for flat. now that it broke back up, and it's at 185, yeah. let's say it broke out to 190, that was a double top. i would go into april, maybe 210 calls. >> watch that trade. max, thanks for coming by. appreciate it. good luck to you. teen trader for today. pops and drops. big moves of the day. maritime up 6%.
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>> i think it was the reporter talking about the space. and that is correct. the space is better. navios maritime. >> pop, for sina. >> chinese internet store. it's being at least estimated 9 billion ipo in the u.s. stay in these names. >> drop for lorillard. down 2%. >> down 2%. up a lot on the week. a lot of chatter that reynolds was going to take them out. this isç one you may want to py with options if you think there's more upside or a deal to happen because the stock's at a. >> pop for joy global. up 2%. >> yeah. they missed. but they reaffirmed guidance. and people were worried about what that guide might be. would have knocked 10% off the stock. it goes to work on the upside and does it about three-times normal volume. i like the move. and a pop for the bacon alarm clock. a company famous for the wienermobile has announced its
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newest toy. a bacon-scented alarm clock. oscar mayer says it awakens users to the sweet sound of sizzling meat. you'll need a bit of luck. the company is giving away 5,000 of the devices to randomly selected fans. >> what could go wrong there? >> a little spritz. a little spritz at the pulse points. got your first look at tomorrow when we come back. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past.
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i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. geico motorcycle. see how much you could save.
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does it end after you've expanded your business?? after your company's gone public? and the capital's been invested?
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or when your company's bought another? is it over after you've given back? you never stop achieving. that's why, at barclays, our ambition is to always realize yours. 14 coming up next hour, major news in the hiv space today around a potential cure. and it's sangamo. that is at the top of the hour. time for our final trade. let's go around the horn. tim seymour? >> asia outperforming. i like korea. etfs out there. buy korea. >> amd. the ceo gave us a good interview. i like it. using a tight stock. >> karen finerman? >> children's place. they didn't have great earnings. but the stock was hit. and i think it's a good buy. >> doc? >> wwe. i got to go with mr. mcmahon's company here. a lot of momentum.
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i think it continues. >> thanks so much for watching. see you tomorrow at 5:00 for more "fast." and "options action." meantime, "mad money" with jim cramer starts 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. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcomeç to cramerica. people want to make friends, my job to entertain and to teach. call me at 1-800-743-cnbc. on a day -- on day when the dow gained 62 points, s&p climbed again 0172%. i have been wracking my brains to figure out why so many commenta h

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