Russell 2000 index that got our attention this evening the index hitting its own fresh 52week high are the small caps saying big things about the health of this record rally guy. Tim has talked about this and good for dan nathan. Why are you shaking your head . Why . Its monday. Were 30 seconds in. Youre already a downer. Dan mentioned it on the call. Everybody said dan is a downer hes not a downer, he pointed out the russell. 161. 5. That was the high back in may. These are pretty interesting levels the real high is at 173 that we traded back in august 2018 but the small caps are absolutely telling a story they have lagged the Broader Market for a while they seem to be catching up. The question is do we ratchet through this 161 level with the s p trading sideways for a while and retest that 173 high it certainly feels as though thats the next move so yes. Are you optimistic . I bring it up because its obvious. You look at this breakout here weve been looking at this index since the start of february. Between 145 and 160, routinely rejected that. To break out this time of year where were seeing new highs on the s p and nasdaq, i think its an obvious choice to say, all right, lets play this one its 7 from the alltime highs made in january of 2018. I want to make one more point, the price of options were talking about the other way in the spy theyre really cheap if you want to make near the money financial bets, you can play for the breakout. Which makes sense to me thats when you want to jump in with low volatilities. You get the push down, you look for stocks with quality names. When you go up and look at the volatility index, down through 12 on the vix, pretty amazing. So where are we seeing some of the action were seeing a lot of paper being traded all over the place. Were talking about 21 million per day in the month of november now, weve slowed down the last three days or so and maybe well slow down as we get into this holiday week and obviously friday will be a half day. But the volumes so far in november have been extraordinary. About a million more per day than the yeartodate average. So volumes are there ill tell you what, its financials we talk about this particular sector of the marketplace when we say the russell but look at the financials look at big tech even today some of those names were absolutely exploding to the upside, mel. So this is something where were seeing a nice broad participation rather than saying, hey, theres four names out there called the faang. The cyclical semis were on fire. They have arguably led us through so we talked a lot here about the russell, down 16 relative to the s p. So youve got room to run on this thing as pete talks about the breadth here, if you are gauging value versus growth, theyre each up 25 year to date youve had it across all sectors of the market. Today you saw the bond market rise, you saw credit spreads tighten, and it tells you along with the vix going below 12 is theres this risk aggression going on out there whether thats justified or not, you certainly have a dynamic where weve wanted to see this breadth. Financials biotech well talk about later in the show. Plenty of places, emerging markets might have outperformed everything today because of what we saw in asia overnight just one point. I think he talks about breadth the last time we saw this level of complacency was really late 2017 after the tax cuts and into january 2018 no one could find a single reason to sell a stock until they did it feels like that sort of situation. It also feels like whatever you thought were the impediments to global growth, they have been pushed out the big one obviously being the trade war. So you do have the setup so why cant you have the s p just keep trickling a little higher and have things like the russell play catchup and get back to the prior highs . At the risk of agreeing with danny downer, when was the last time you saw this steep of a move essentially in small caps and how much room is there to run and what do you look at the rest of the market so ultimately if we have this seasonal push, reminding that we have a fed thats probably on hold you have macro data around the world that hasnt done a lot over the last couple of months and stabilized maybe this is what you need. Hey, pete, where are you from minnesota the midwest. Now youre shaking your head. We all know that. I take nothing for granted. You mentioned how many times when the stock was trading 225 did we mention United Health and said United Health, unh, at a 13 multiple makes zero sense. Its going to trade back to the alltime highs we saw in december guess what happened today . Traded back to the alltime highs we saw in december now its trading at a more reasonable multiple, probably closer to 18 so theres a name if you want to take profits now, it wouldnt we the worst idea in the world. That stock has probably had its run. To tims point, how much can the russell go probably 7. 5 . Health care its been day after day after day, whether its merck, pfizer, all these various names moving to the upside im no longer in United Health i just felt like it was getting a little too stretched cigna is really inexpensive. Theyre well managed they also have a great p. E. Multiple you look on that side of the industry, its really interesting right now, mel, how well those names are doing yet they dont get talked about very often until tonight at 5 00. You mentioned taking profits at United Health but 7. 5 upside on the russell. Tim asked the question, how much more is left. I pay attention. Right does that imply theres not much more of a move to the upside on the s p 500 . I thought the s p was there a number of times and now were continuing to grind higher i think the beta is more so in the russell than the s p. And the catchup trades. Oh hold on what . Hold on theres not been a single skeptical voice here in this whole conversation listen, this is how things go when you have a market s p up 25 on the year, nice round number on the dow. Listen, you just said something. Well, Economic Data around the world. People are convinced that its bottoming . I dont know why people are convinced that the fed is on hold did you see the 10year treasury yield going lower today . Which is fine. Im agreeing with you. But what im saying with you, when you cant find a single reason to sell anything, thats problematic here everyone is just convinced that everything is all set for all systems go in 2020 i think the higher we go right now, the lower we go in q1, 2020. We talk about the russell all the time were leading off with it. People are selling out of certain things but i think theyre going toward the russell. Certain names outside of that industry as well where youre looking at specifics you know what, like for me with United Health, it finally sprints to the upside. You know what, im going to a different name where ive got similar aspects of what im looking at but its trading at a lower multiple those are what people should be doing right now, moving around like they have the rotation effect so you can move to the upside. Guess who else is buying today. Companies. Companies are buying each other. I dont know why its any different now. You can look at any one of these big deals weve seen the last week you can argue theyre very much industry specific, very much Company Specific weve had cheap rates for a long time but maybe this is one last gasp while the getting is good and the Regulatory Environment is very benign. Rates tick down lower. This is a great place for m a. Weve never been in a boom cycle where rates are this low schwab and ameritrade will take out hundreds of millions of dollars in costs during the lifetime and that also means theyre going fire people. Like 10,000 probably. So it is different this time as far as an m a cycle at the top of a boom or near a top. Usually it doesnt happen at the bottoms, it happens at the top one investors trash may be anothers treasure carter worth is over at the plasma to do some dumptster diving what are you looking at . Things that are going basically straight down versus the equity market in general going straight up. Five names that have been basically so bad theyre good but starting to bottom you know what these people do, whether its mac and cheese or ketchup and you know its chart, straight down and to the right but just starting, and ill zoom in, just starting to break above the downtrend line lets go to the next same picture its u. S. Steel. You know what they do. Theyre a steel company. Same thing just breaking above the downtrending this is dumpster diving. They have been going down for two years but each has just started to perk above the downtrend line two more, freeport same circumstance. Zoom in here and you can see it ever so slightly above the downtrend and then finally ge, which is quite a bit more above its downtrend. So consider those five names obviously there are a lot more in the report. And consider the following names you know, decent market cap, u. S. Steel being smaller, but in total 210 billion. This is the 12 setup. What we know is look at the twoyear performance equity markets are at alltime highs and down 61, 42, 70, down, down, down thats the setup now the leg up is this flip it around look at what they have done the past three months. Again, the market has done this, theyre all outperforming. You have the 12 setup of great weakness followed by recent nacent strength. Here is a basket of that group i think there are several ways you can do this. You can call this a Double Bottom you can get rid of that and call this the perspective of a head and shoulders. Put the same line in and just ever so slightly lets zoom in as a group that is moving above the downtrend. Dumpster diving between now and year end will be the place to be. Carter, come on over. Will also went to the harvard like you did that harvard yale game historic in nature. Not because of the halftime game the game itself. I know you watched, didnt you, melissa . Every second. I didnt watch a single second. Ha ha anyway, so for these breakouts to occur, is the backdrop does the backdrop have to be a rising stock market not necessarily theres two things that happen when you have a fairly extended general equity market. Money gets a little bit annoyed or desperate and says let me find something that hasnt come to life. Lets play the laggard that typically happens as youre reaching the mature stages of a big run in the market. Laggards get played. Now, one could say, okay, this is the whole value does u. S. Steel versus microsoft the next 36 Months Microsoft will kill u. S. Steel will caterpillar beat google not a chance will any of those duds beat great Growth Stocks . No but can you make more money now in the next three, five, six, eight weeks. These stocks are killing the market, right . So the setup of great weakness followed by emerging strength. Typically that turn, that momentum can be played. Carter, of the five names you picked, two are recovery stories. Theyre all idiosyncratic i think they can be traded as a group and essentially with some stabilizing of the Commodity Prices in a global cyclic cyclicality. Its not really happening in copper look at the price of copper. And i picked those because theyre big names people know. The list is quite long a lot of them are small cap. Thats the nature of dumpster diving youre finding fairly small names. Carter, what do you think, theres another group in the dumpster, uuber, lyft, slack could you see any seasonal effect in the last month of the year where a lot of people might have vested interests in seeing those higher. All of those are basically super duds pinterest, beyond meat duds . As opposed to these longterm duds which is at least showing some life. Chart is a coward. You go first and ill be right behind you. Lyft is up 30 . They look like theyre trying to bottom. Thats almost too nacent. I want it to show that basing bottoming action that would suggest its got a little more traction. But just to quickly tie it back to the original conversation we were having at the top of the show with the iwm, you mentioned smaller cap stocks thats whats made up the list primarily. Is that what were seeing in the russell overall . Whats so curious about the move today in small caps, which is what happens when speculative action is going on, growth outperformed value thats the real tell today the russell 2000 has a big weighting in banks, which is value. The iwo performed the iwm. And thats very interesting because it wasnt, quote, value that outperformed growth today in small cap. Carter, thank you he did not mention, carter, and im not bringing him back, but you have a major Double Bottom in freeport and weve talked about that. Bank of America Merrill lynch is upgraded percentagewise thats a 20 move i think youre going to see it u. S. Steel, which has been awful since march when President Trump announced the tariffs, went from 45 to 10 in a straight line. Thats another stock that i think can bounce he mentioned nacent twice in an eightminute span. I think thats a penalty. No, i think thats a wonderful word that should be used more. I know what it means. He went overweight on it. Coming up i think its fine im the final arbiter. Palo Alto Networks and pvh reporting after the bell. Later, buckle up because we have a car industry triple play. The three big stories in the drivers seat today. Were live from times square in new york city. Much more fast money after this have you ever worked with dr. Francis . Oh yeah, hes ok. Just ok . Guess who just got reinstated well, not officially. Nervous . Yeah. Yeah me too. Dont worry about it, well figure it out. Ill see ya in there just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. Welcome back check out pvh and palo Alto Networks both moving in the after hours session. We start with josh lipton in San Francisco on palo alto josh. So the ceo is on the call and saying that his company is now Building Products with a. I. And ml so recognizing that this is an evolving Technology Customers see the benefits and are betting on the company how is the company progressing against its longterm goals . Aurora is saying theyre doing better on some metrics, guidance when it comes to billings. They put out this 800 million plus bogey so they actually increased next gen security billings by 10 million just going back and forth with this analyst who covers the name and the sector who knows that they did fall short on product so legacy on prem, firewall, hardware and software. The competition notably from the Cloud Security players have been showing more upside he says. For eps margins and cash floew,s aurora says were looking to invest and stick with the companys financial targets. Analysts are also asking about tariffs and the impact there the cfo saying they do source some components from china we did increase pricing on firewalls to offset tariff impact back to you. Thank you, josh guidance as much as 19 cents short of consensus estimates. Thats the problem. The First Quarter was fine, beat by a couple cents revenue beat but Second Quarter confide ans, 1. 12 and the street was at 1. 30. You have a major double top at 2 250 back in april. What does it mean . It means you dont buy it, you let this settle. Valuation is too high. I think it retests the 200 level. Valuation is pretty high. All of a sudden you look at the through. All the competition out there, we talk about this every single night. Whether its in streaming or whatever, competition is there the competition in this particular space, cybersecurity, is as an incredible level. So its something they have to deal with. When they give that kind of guidance, thats the reaction they should get. But if this goes down much further, i think it will be a great opportunity. To what down to maybe the 220 level if it gets there, thats the area to buy. Pvh is also on the move Frank Holland is back at headquarters with the details. Shares of pvh moving up and much lower after reporting a beat on revenues and strong beat on eps they raised the top and bottom range of its fullyear guidance after lowering it last quarter the Tommy Hilfiger brand saw 10 growth but the gains are coming from mainly outside the u. S. The commentary from the ceo is where the stock took a hit he said the Holiday Season will be competitive and highly promotional. He expects volatility will continue to be a headwind. On mad money he told jim cramer how his business is being impacted by the uncertain climate surrounding tariffs. You know, the worst part is the uncertainty. Im sitting here on december 1st, thereabouts, and i dont know what my costs are on to be in january. Thats crazy. Is it a 15 tariff, 25 tariff or 0 tariff . David schwartz said its clear were looking at a very promotional market in north america, but they are equipped to handle it they are so international. Calvin and tommy have so much revenue outside of north america. Dana telsey says when you look at the complexions of the business, the outperformance in europe for tommy hill figurer and solid growth of calvin in europe is what helps you grow. Thank you, Frank Holland. It almost sounds like manny was being conservative. He was also conservative on their fiscal q3 going into that Holiday Season but they have had two quarters in a row they have ratcheted down expectations and told you its a very difficult environment. North america was going to be somewhat sideways. Thats really what weve seen. They have new clothing lines at calvin klein but this is one of those brands that i think has gotten somewhat commoditized and ubiquitous. The stock went from 170 to 70 to 100 so youve had a pretty significant move but valuation is somewhat a compelling story the guidance wasnt awful. I dont know whos buying calvin klein. If you recall back to the future, do you remember that movie . She thought his name was calvin because of his briefs. And on friday we had a guest on talking about where he buys his undergarments. Id be more inclined to buy it than sell it. For a full rap, head to our website on cnbc. Com. Heres what else is coming up on fast. It may not look like your regular pickup but tesla has interest already but are the preorders as good as they might seen. Later, biotech stocks hitting their highest level in more than a year we look for opportunities in the red hot seorct all that and more when fast money returns n. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Welcome back to fast money. Car talk front and center in the market today liftoff for lyft is on an analyst upgrade and tesla rising on cyber truck hype. We begin there because as phil lebeau is about to show you, it may not be as it seems phil, what do you mean well, youve got 200,000 reservations thats how many were received through yesterday according to elon musk. This brings up the question, how many of these reservations at 100 a pop will actually turn into orders and how does it compare to previous models well, weve got a little data there. Remember, its a 100 deposit for the cybertruck it was a 1,000 for the model 3 back in 2016 tesla said they got up to 455,000 reservations there as for the model y, its a 2,500 deposit they never told us how many preorders they have for the model y. Over the weekend elon musk said the cybertruck orders so far, 42 of people putting down a deposit said we want the 49,000 dual motor version 41 want the triversion and 17 wanting the single motor remember, these vehicles are scheduled to be delivered at the end of 2021. Melissa, we cant stress this enough just because there are reservations there, theres no way of knowing at least we havent been able to figure out at this point and analysts havent figured out how many of these preorders actually turn into full orders and customers buying a particular vehicle. Ive talked to people who put in an order for the model 3 and ended up buying it i talked to others who said i put it in and decided i wasnt going to wait around so got my 1,000 back. Its a little hard to figure out how many of these 200,000s will turn into paying customers. Theres a lot we dont know about these numbers, phil. When he tweeted, its interesting that elon musk chose the word orders as opposed to deposits. Yeah. Some people are saying is this a violation of the terms of the s. E. C. Agreement look, now youre getting into a real fine area here and im sure the s. E. C. Maybe heard from some people who said there he is, hes violating the terms again i didnt read it that way, melissa. I thought, okay, he didnt write preorders, he wrote orders thats how i looked at it. But some people are probably listening to me saying, oh, youre naive elon with push the envelope as much as he wants i didnt take it that way. He was so active on twitter, updating, 187, 200k. He also tweeted cybertruck is the last product unveiled for a while but there will be mostly Unexpected Technology announcements next year, which also seems like hes pushing the envelope. Right but he has said this in the past, that there will be Technology Announcements look, i expect theyll probably have another battery analyst day similar to what they had last year remember that was the one it didnt go over too well with the analysts they felt like they asked more questions than received answers. Especially whats going to happen with auto pilot and full selfdriving mode. I suspect those are the things well likely hear from tesla and elon musk over the next six months or nine months. All right, phil, thank you. Phil lebeau in chicago for us. So how do you take this news there are a lot of holes in these numbers. You take it the way the stock traded today effectively closed unchanged on the day. I cant believe mr. Musk is all that happy about given what he said over the weekend with all these orders im sure in his mind, that brilliant mind that it is, thought the stock would recoup all the losses we saw last week and gain some. It didnt. Im in the tim seymour camp. I understand the cash flow story. But you would be short the stock . Given a choice between would you rather long or short, i would rather be short, yes. Theyre making moonshot cars by kickstarter have at it i just dont get a 100 deposit. It seems like a ridiculous thing. Last week i put down a 500 deposit on the ford mach e that will be delivered in late 2020 ill be interested to see their execution and how that comes out. I suspect that thing comes out on time. This car is never going to be made when youre talking about the difference between orders and this and that, whatever, i dont get it if you want to build cars by kickstarter, have at it. I dont think you do it with a company that has a 60 billion market cap. Are you going to join the bear on tesla . New york city io, im not, w late 2021 for the delivery implied volatilities have gotten tamped down, extremely down. On the put side with the shorts still existing out there, youll look at nice premiums. On the calm side on the other hand you have some room to put on some spreads for the squeeze to the upside. Are you done it i was looking at it today. What would the catalyst be in your view . A continuation of the fact that all this news and not all of it has been great news. In fact very little of it has been yet look at where the stock is you always say this all the time, guy. Hey, you know what, the reaction of this thing is what really matters. But hasnt the news been great . Has it been great you followed tesla over the last couple years. The news over the last three or four months and most notably, its all you want to hear. The other stuff doesnt make sense. They had 273,000 model 3 orders in the first weekend as well that was awesome if you think that equates to demand as someone whos not bullish, has been bullish but therefore but the interpretations that we got for the most part werent all that positive. When i say earnings, were talking about the actual numbers themself that tesla has. Those numbers are still very suspect and very interesting to look at. Not everybody thinks its bullish. Lets shift gears, so to speak. Uber falling after london has concerns over passenger safety lyft catching a bit after being upgraded to a buy. Its projected it will break even in 2021 is lyft the better ridesharing play here . Specifically in the lyft upgrade what was interesting is that the analyst had mentioned uber being caught up in these international battles, like london. I think lyft has chosen a format to play on a local level thats actually worked theyre certainly not expanding their business line. Its the pure play if you look at how the stocks performed, this is a dumpster dive that didnt just start to turn, it started to turn two months ago and is up 35 in about 35 sessions. So at some point i think this was very overdone, very much short selling. Its hard to get excited about profitability even though they have given you some sense late 2020 who knows. Its a super dud, though, according to carter. Heres the thing, right get nacent in there. No when you dont have a profit story to talk about now, youve got to hear consistency from the management i think lyfts management has been consistent about when thats going to happen the stock bottomed out at 37 about a month and a half ago, its trading at 49. It ipoed at 72 and traded as high as 88 i think when you see uber dealing with some of these issues globally, i think it probably makes some investors who love the rideshare gig economy, all that sort of stuff, lets stick right to home. How they dealt with the california regulation issue, i think they were transparent about that sort of thing its an easier story to handle. At what point do you think dara has a problem youve been critical of him after the axios exchange, after the deal book, you have this now. I think this is a company where the board, i know theres been some issues theyre all in behind dara right now. This is a complicated story. Its one they cant even put their finger on when they say theyll be profitable. I just think lyft is a much, much easier story to invest in coming up, a big deal in the biotech space sending the group to a new 52week high. Has the sector made a full recovery well hear from the traders. Later, shopping for a deal the one Stock Options adtrers are eyeing into earnings well bring you that name when fast money returns theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. Welcome back to fast. Cholesterol drug maker, the Medicines Company topping the tape today this after novartis offered to buy it that deal giving a big boost to the Biotech Sector the ibb hits a new 52week high. The biotech index up 10 over the past month is this just a beginning for an even bigger breakout for the space . Its been a huge move i dont know if its the beginning but theres still room to the upside. Amgen, alltime high we talked about this stock for years. Valuation is compelling. Makes sense absolutely youve seen what happens with celgene with that acquisition by Bristol Meyers i think theres a lot of room in the space. In a low Interest Rate environment where cash is free, people are going to reach. Thats what happened with the Medicines Company and i think that will happen with some other names. That seemed pretty expensive. But novartis has done this twice though so its amazing how much they are willing to go out on a limb. I agree with guy there are a lot of names where you look and say, wow. Biogen trades at 10 times earnings although this move has been move on the alzheimers potential so weve had a huge move in the stock but it still trades at that valuation so i think theres a lot of opportunities out there, whether its amgen, regeneron, all these types of names i dont know how many more will get bought up but i think theres an appetite by smaller acquisitions by some of the big pharma names. This deal is interesting because theyre already in cardiovascular and have a number of other product launches. The valuation wasnt great this is everything that bummed people out about the Biotech Sector two years ago everybody said they have to do something, its a very aggressive environment, put that Balance Sheet to work. Theyre damned if they do and damned if they dont the market has been reaching for laggards fantastic Balance Sheets, not just decent, but fantastic and companies that weve maybe overestimated how limited the pipeline is. The criticism is that you have enough cash to do something with but you also have enough cash to do some illfated deal. Ill mention this youre talking about the ibb and the breakout mel, your question is it just getting started. Look at the xlv, the Balance Sheets of big pharma that just broke out at 96 or Something Like that. You want to play a breakout, you want to play a laggard, its only up 15 on the year. Thats a space i would go into, into year end. Listen, when those guys have made acquisitions, actually stocks have gone up. Up next, discounting retailer dollar three out in earnings tomorrow morning. We dive into what the Options Market is saying ahead of those results. Were just hours away from alibabas Hong Konglisting tha will be the biggest tofhe year. Will shares live up to the hype . Fast money is back after this. I knew about the tremors. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. 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This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats. Can your car do this . Man, yall getting a hook up and yall dont even work here. Dont act like im not doing yall a favor. Yall should be singing my praises. Pacificaaaaa with employee pricing, get 4,107 below msrp plus 1,000 bonus cash plus 0 financing for 60 months on the 2020 Pacifica Limited welcome back to fast money. Dollar tree seeing a big bounce today and investors are expecting a bigger rally tomorrow whats the setup going into earnings. Taking a look at dollar tree, we can see that the way the market is shaping up, people are expecting a pretty significant move to the upside thats borne itself out in both the stock and the options. Take a look here at the implied move and you can see the friday straddle is implying a 6 move in either direction between now and then thats on the rich side. Taking it a step further, what you can see is that calls outweigh puts 2 times to 1 same story despite the fact that option values have been pretty low leading up to today, weve seen real robust volume in terms of the calls being purchased today, which takes me to the implied move two things i want to point out here one is that you can see that implied volatility is a bit rich right now. The second thing i want you to read into is theres some cyclicality to option prices leading up to earnings move every quarter, option prices get expensive and then sell off. We see that repeated time and time again the last thing i want you to focus on is the stock itself i want you to have an understanding of how the stock is trading leading up to tomorrow the stock had a small gap, hard to depict right here action and we have yet to fill in that channel. We bounced off it a couple of times. Weve had a shortterm downtrend. And today on real volume in the option and the stock we have started to make that move upwardly and aggressively to the upside netnet looking at the stock and the options, guys are pretty optimistic going into tomorrow morning. Thanks for that whos into dollar tree one of the issues has been the gross margin theres been a headwind. I think youre starting to see that change going into next year so if you look at what they announced in fiscal q, it was a case where they guided things are getting a little bit better. I think you can own the stock. Dont forget, no show this friday. What are you going to do . Wednesday is the hump day and gobble gobble. Friday off. Up next, Stranger Things happening to netflix the stock climbing today despite a big downgrade. Well dive into the action check out the cramer cam jim is talking to the ceo of Bristolmyers Squibb that full interview coming up top of the hour. We are live at the ndaasq in times square much more fast money still ahead. Best. Finding out whats sellig to managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. vo the flock blindly flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. Great riches will find you when Liberty Mutual customizes your car insurance, so you only pay for what you need. Wow. Thanks, zoltar. How can i ever repay you . Maybe you could free zoltar . Thanks, lady. Taxi only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back to fast money. Netflix shrugging off. I spoke to the analyst behind this call and he told me the math just doesnt add up. Netflix has been losing around 2 per subscriber a month so its charging around 10 on a global basis for that streaming service. Its spending about 12 on that same subscriber. Despite the move to a sell, netflix ended the day in the green. Get this, its now the best performing faang stock this month, up 9 so will netflix stream higher from here . Theres one line in this note saying where we might be wrong people dont care. It looked like people didnt care. Thats been the story for netflix for a long time, people didnt care. I know we said it will trade down to 250 and spot on thats what happened. How much more room i think there is room. 325ish is a 50 retracement of the entire move weve seen from top to bottom. But i do think theres room to the upside on netflix. In a runaway bull market theres plenty of room for these guys to have a catchup trade up 24 in 40 sessions if you look at faang across the board. Amazon, you probably get back to 2000 but the fundamental story with netflix is one thats had challenges. Its always been challenged i understand what youre saying but i think when you talk about u. S. , the challenges are already there. I think international is where theyre going grow they talk about the india markets, tim you know far more about this than i do. But the fact that internet is getting better, better, better, bigg bigger, bigger, faster out there, they claim its the next 1 hundred million subscribers coming out of there. So what will it cost them to get to the 100 million subscribers . They lose 2 per subscriber. 3 to 4 billion you want to go to india and make that content just for india . Have at it thats going to cost a lot when you think about north america where we know why do you suppose the stock didnt get hit after this observation . When you can bring have at it if thats the story that you to find the next 100 million usersin some third world country, okay. We dont use the term anymore. Developing market. Developing economy. You guys of just so like okay, boomer. That doesnt work. It doesnt even work. It does laugh track perfect timing. You could try that again later on, not right there. From evideo to ecommerce, alibaba is just hours away from listing on the Hong Kong Stock Exchange in what will be the largest public share sale in the year deirdre bosa has all the details. Its also a home coming for alibaba. The Hong Kong Market opens at 9 30 a. M. Local time, 8 30 eastern tonight. Dont expect all the bells and whistles of a traditional ipo. Chinese investors know alibaba its ecommerce and Digital Media is everywhere across the country. Secondly, they have been keeping a low profile during the listing process as hong kong continues to be rocked by prodemocracy protests still, demand has been strong and the Company Closed the books half a day earlier than planned at 11. 2 billion or almost 13 billion if it exercises an overallotment option it will represent the biggest share sale in hong kong in nearly a decade. It will also boost their cash reserves to nearly 45 billion, begging the question what does alibaba do with all of that cash in past years the company has not shied away from buying its way into new businesses or markets. Put 4 billion into lizata 800 million for a controlling stake, the South China Morning Post for 266 million, koala for 2 billion so alibaba could continue the shopping spree with fresh capital or always just use the proceeds to return money to shareholders through dividends and or buybacks. Shares are up 40 this year but over the last two years theyre flat it could be a way to boost their share price and potentially shift their Investor Base to hong kong, a process it may just be starting tonight. Back to you, melissa. Deirdre bosa in San Francisco. Youre watching this very closely. Yeah, so this deal is incorporate becau important because you brought in an enormous retail audience. This stock has not been available in asian trading hours. No, they didnt need to raise this money but this is more about diversifying the Investor Base one of the reasons its been flat the last two years, this is one of the ultimate proxy trade war talks. So 190 is your top there that to me is critical breakout. I think were close. The stock trades at a peg ratio of 0. 5 if you look at the mega cap stocks around the world, this is as cheap as any. The idea of essentially doing a secondary in hong kong, just do it and putting that cash on your thing, it seems like a fairly brilliant transaction i think it was interesting she said the company has kept a low profile during this listing. I think there will be increased demand for more shares in hong kong specifically. If memory serves, bonowin was here recently and talked about the alibaba and he said there was a real good chance to go back to the 205 level. Why is everyone smiling at me, in june of 2018. The addition of the article in front of the company. The alibaba. Weve seen more and more baba being bought and the 205 strike is exactly what theyre going for. Im in the calls and ive seen a lot of activity. Up next, final trades sundown vitamins are all nongmo, made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Final trade time pete. We have seen some monster paper in eem, today it was even bigger 100,000 calls bought to the upside, im in those giddy up, this is going higher. This alibaba could be for something going sideways and financial, i like it. Dan. Carter worth on this program a couple of weeks ago called that xlp guy. Its a fun show tonight theyre always fun, guy. You know, the blackstone if you look, and it is the blackstone, bx, thats been stealth to the upside. The stock is going higher. All right well see u ckyoba here tomorrow at 5 00. Mad money with jim cramefr starts right now theres always a bull market somewhere. And i promise to help you find it mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job isnt just to entertain but to educate and teach you so call me at 1800743cnbc. Or tweet me jimcramer. Who are these people who keep saying stocks are too expensive ask if theyre so pricey why do see large