Well break down the numbers later, we are closing out our series on the cannabis craze with a deep dive into green thumb. We start off with a big developing story at apple as that stock hits a fresh alltime high epic gains after apple removes fortnite from the app store. Epic blasting apple. Take a look. We shall prevail. Lets get more on this developing story jewuli julia . Epic is taking legal action after apple after apple removed fortnite from the app store. Emmick posting this individ g epic posting this video with the hashtag free fortnite. Apple saying that epic has benefitted from the App Store Ecosystem for a decade saying their business interests now lead them to push for a special arrangement and not change the facts these guidelines could level the Playing Field for all developers and make the store safe for all users epic says it isnt seeking monetary compensation but injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers. This all comes just a few weeks after tim cook participated in those antitrust hearings on capitol hill we just got a note from spotify. Spotify also distributes to the app store. They tell us they applaud epic games decision to take a stand against apple and apples abuse of this dominant position. Getting some support there from spotify. Julia boar ston we heard about these apps in the past of smaller App Developers suing apple. When you take on the likes of a fortnite, it sort of changes the magnitude and the potential impact of this of course f this actually plays out in court, this is sort of the antitrust battle that congress wanted to take on that would be played out in the Justice System instead gives congress the opportunity to litigate this thing through the courts in a different way than maybe they have the initiative to do right now. When you have spotify weighing in for epic games, this is something thats not going to go away the only way it goes away is through regulation or if apple changes the way it does business they are a massive gatekeeper to any innovation thats going to come on their platform through the ios. I dont think the stock is going to trade poorly off of it. They were in litigation with samsung. I dont think it really had a huge impact on the stock even when those phones had certain bans about shipping. To me, this is a headline risk its the sort of thing that will probably get going in europe a bit more than here in the u. S. Apple will likely have to make some compromises or they may be faced with some very large antitrust suits in the next years. Think about who fortnite could band with, could side with go back to ten cent. It owns 40 of fortnite. It majority owns riot games as well riot games is going to put league of legends on mobile sometime in the fall youve got a juggernaut there fighting apple potentially think about for ten cent also the exposure they have on we chat which again gets them back to where the chinese are going to complain. Ten cent has been struggling, down big today yes, i think ten cent is the strongest, the most powerful Gaming Company in the world, period they own about 40 of epic games. Seven or eight years ago they b bought 40 when you think about apple and where it is in the cycle of this move and you think about how much thats been based upon services, the map around the app store and the impact to what that means for services revenue, its massive in terms of overall revenue, its 810 of apples overall profitability. Its a very big number, i think, in the big picture but in the short run, i dont think this is about anticompetitive i think if anything it means these companies have to find another avenue to bring it i think this will create other avenues. This may be what apple will be most upset about is theyre forcing other competitors. You mentioned that 810 of profit coming from services. I agree shortterm thats a small impact guy, in the longterm isnt that a big portion of the growth story, this notion that services is going to be the future. If you take away that part of the fly wheel where apple gets a 30 cut from all the apps on the app store, that could add up to be a lot. Yeah. To your point, i think Service Revenue is now 22 of overall revenue. That numbers been trending in the right direction. Thats why the multiple continues to move in their favor. Yes. Theres also a huge leap from one company taking on apple to their entire ecosystem as julia said and as you know, these companies have benefitted from being part of that Apple Ecosystem whether they acknowledge it or not. They just want to get it cheaper, i guess if there are better places for them to be and cheaper places, im sure they will pursue it to tims point, there are other places they can go apple does not have a monopoly here i think there are reasons to sell apple here, to be taking profits. I dont think this is one of them i will point out and we do it all the time, there are a lot of people that say buy it and hold it and own it. Thats correct at an alltime high its hard to argue with that. Remember in the fall of 2018 this was a stock making an alltime high of 220 and within a month and a half trading at 140 and recently seven or eight months ago made an all time high of 335 and basically cratered down to 220. The stock does move to the downside from time to time apple is playing a very difficult game if they take a hard line and say epic, you can go elsewhere, it does risk saying no to a lot of the most popular apps out there that kids want, that people want on their phones. Those people might not buy an apple phone in the next upgrade cycle. The context of this stock being at an alltime high s th, is th concern . I think those are two separate things. Im hesitant to extrapolate one particular customer of apple and extrapolating that to its entire customer base. Yes, while epic gaming is a large participant, ten cent, all those things, its a large concentration. Weve seen cyclicality and changes in those bases the constant is apple. Its really tough to bet against them grant what had y granted this is still a behemoth that is extremely profitable across verticals i think this is more of a headline risk but im hesitant to apply it in generalities. I guess i put the two together in terms of where the stock is if you think the stock may be overvalued, this may be the headline risk you want to take some profits on, dan. Yeah. You know, i think these guys all make great points. I think tims point about we chat is a huge one if you think about china, guy just said apple doesnt have a monopoly they have nearly 45 of the smart phone market here in the u. S. And much greater of the high end smart phone market. Their market share in china is less they have a huge issue with we chat we chat is basically just the app layer that could sit on a much cheaper phone in emerging markets like china i think you have to put all this stuff together and say they could have an issue with we chat in china just a nationalistic fervor, people staying away from apple products and you could have an issue here if people are not buying those products because they are not allowed to come through the ios app store. That could be a huge issue i think apple also faces the risk with the we chat tiktok deal what if the chinese say we are going to start regulating your app store . I think theres a lot of issues here with the stock at alltime highs. This stock has gained over 300 billion in market cap. Staggering. Joining me former apple ceo john skully great to have you with us. Youre an extreme bull in terms of these risks weve been talking about, do any of these concern you . Its been a great discussion, a lot of really smart insight from your panel. What i would add to it, falirsto all, services is really the big part through this second ive seen services reaching 50 billion of profits by 2025 i look at it in terms of what are the things apple can control. One of them is the Terrific Technology that they now have with their vertical integration into the iphone. The iphone is not going away in the decade of the 2020s. In fact, if you look at the micro processor technologies apple has invested in, some people have estimated that by 2030 the iphone may be a billion times more powerful than the original iphone that steve jobs introduced think about that what thwhat th services think about when 5g is fully deployed around the world. Apple has a great runway ahead of them. Its the most Competent Company maybe in the world in terms of its ability to run operations, execute. Many people have said why isnt it more innovative well, it actually is very innovative in the things that are important inbilling its ecosystem. For example, the library that apple announced this year that only makes it more easy for people to be able to add more apps and be able to upgrade apps and things of that sort. Thats the engine of profitability for apple is in the services, particularly the app store. Im very bullish on apple i think theyll hit 2 trillion market cap by the end of this year i would guess by 2025 well be talking about 2. 5 trillion. This is clearly a company that is in for a long, long run. You mentioned market cap. To dans earlier point, heres a company thats added a trillion dollars. Its remarkable but since the march low 300 billion or so in the last seven or eight trading days my question is, is the market underestimating the potential for apple to be caught up in these continuing, ongoing and escalating u. S. china rhetoric, the back and forth in terms of whats going on between these two countries . Can the chinese escalate and could apple find themselves in the crosshairs of course they could escalate remember, were in an Election Year we have three months to go until te electio the election i think you have to discount a lot of the things that are being said until we get past the election apple is not going away before the election i look at apple not in terms of how does it look today im holding apple. Im not selling apple. If anything, weve been buying apple over the careyears, not selling. I believe well have a much clearer picture regardless of who wins or loses the election as to what the risks are with china. It would be really a stupid thing for either china or the United States to start to try to have a war with their Major Companies like ten cent and alibaba and apple and others it doesnt make any sense to me. I think cooler minds will come to their senses. Lets get past the election. All right john scully always great to hear your thoughts, former president of apple right now were saying oh its just fortnite. It could be riot spotify came out with a statement in support of epic games. Is there a risk that major apps ban together and say enough of this it is like that ad that parodie that 1980s commercial that apple put together youve got all these different players in this eventually throwing that hammer at the screen yeah. I think theres an argument, though i think this is where dan was also referencing where are they going to play these games . Ultimately thats one of the big issues so the dominance of the hand set of the install base, the dominance of the ios system is something that need to be addressed. Again, i do agree and i think when you talk about riot games and activism blizzard, all things that ten cent has a major stake in in addition to fortnite they are certainly in terms of the gaming community, they could be one of the strongest players. Very interesting also what mr. Scully referenced is this whole dynamic of mega cap tech Companies Like apple better off, worse off or indifferent as to who the next president of the United States is i think you have to be really careful to expect a change in administration changing the tone maybe the style will be different, but this is a very bipartisan issue in washington in fact, i would argue that there are democrats that have made this a bigger agenda item for them than even republicans if investors are looking at mega cap tech as an investment where on the days biden is ahead in the polls so its safe to buy mega cap tech company because china will thaw. Applied materials rallying 2 of earnings results. Lower quarter they reported 1. 06 a share. Thats 10 cents beater than the analysts estimates. And 4. 4 billion in revenues is more than a quarter billion dollars above. Applied materials is also raising its outlook well above analysts estimates. The ceo noted that the auto makers remain week but the pandemic is driving and accelerating what he calls a Major Technology inflection for semiequipment due to working from home, on lyle retaline ret. He believes levels will be sustained or higher in 2021. They also updated as well on their acquisition of that 2. 2 billion deal they did a year ago. So far they say they hope to close it soon but they have not given an end date. That deal happened like 13 months ago so thats still hanging in the air ov bertha, thank you bonawyn, what do you make of this quarter good question so as she mentioned they beat on top and bottom line. I think thats important definitely something to take into consideration i think what were seeing in this space and others is what guidance looks like. All arrows are pointing upward there in terms of demand and margin i they have about 5 billion of cash theyve been on a strong up trend. That 1. 06 number came in stronger than the 95 cent figure that was expected. I think strong Quarterly Earnings in addition to guidance and showing robust strength through this covid situation is really a reason to continue to ride this trend higher. Up 2 right now in the after hours. Some of techs most popular names have been left in the dust intel micron and cisco getting hit hard this is the old name tech stories not doing so hot especially as we witness them report earnings and the after hours action. Yeah. Some of these legacy names intel was Pretty Company specific but i think some of the things they had to say fly a little bit in the face about spending Going Forward i can point at western digitals disappointing report last week then theres micron. The stock road down today on a broker downgrade talking about weak demand for memory right there. You put that all together with cis ciscos really disappointing quarter. It was a mess. I know tim was chatting about this a little bit. That is not what you want to hear about Enterprise Spending when youre seeing so much of technology having their multiples expanded it is a winnertakeall and it seems like these legacy tech names, the cheaper they are, the worse they act right now. We saw the impact across dell, hewlettpackard, all of those sorts of names in this session today. Deutsche bank downgraded not only micron but a few other names. The concern for micron is how cyclical the company was it seemed to push through that a couple years ago but now seems to be right back into that commodityized problem where the market gets really concerned it really comes down to this there will be people that play micron for the catchup trade but in this environment that really hasnt worked the winners continue to outperform and the losers get punished once upon a time Cisco Systems used to be viewed as the bell weather in Technology Today what is that bell weather in your view Chuck Robbins was talking about the delay in purchases essentially pushing down to the consumer stack and where theyre even more concerned when you look at the entirety of the smaller businesses and even more limited resources. Its fascinating to think about the conversation were also having at apple versus intel and cisco when you think about how apple has slowly transformed itself into a recurring revenue Stream Company the story with cisco is where its trying to get into software, security it is doing that, but they havent rotated as fast. Its pretty clear and in fact if you think about intel and the chip and the issues there with x86 theres a lot of different tentacles there but intel and cisco are lose right now in the cutting edge and the leading edge technology, or they havent transformed their business into recurring Revenue Streams and theyre still hardware plays you get the sense there is less money to be spent and its probably not going to hardware right now. Coming up, well identify into the numbers later apples doing it, teslas doing it whos next some of the high price tag stocks that might be heading to splitsville. They help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Good morning, mr. Sun. Good morning, blair. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. And im gonna eh, eh, eh. You say the customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. Welcome backs to fast money. Weve got another earnings alert. Shares of baidu trading on after hours lows. We have the google of china, i guess is the best way to say it shares down nearly 7 right now, almost 1. 2 million shares of after marketvolume this is after reported profits of 14. 73 yuen per share the ceo said in the release that their business is steadily rebounding as covid19 becomes more manageable in china those are his words. It estimates Revenue Growth will come in anywhere from down around 6 to growth of 2 on a yearoveryear basis adding that quote, the covid19 situation in china is evolving and business visibility is very limited. Also that the forecast reflects baidus current and preliminary view which is subject to substantial uncertainty. The Conference Call is slated to take place later on this evening, 9 15 p. M. Eastern time. It may not be out of the realm of reason to hear some questions perhaps about the growing tensions between the u. S. And china, specifically on the big tech front and what businesses could look like in the coming months and quarters. A lot of big deal, of course china front and center for many u. S. Investors right now. Check out shares of ite, sinking double digits on the back of its results. Tim, what do you think i think if youve been following baidu, this has been a two to three year story of a downfall and demise of the google of china and its really not anymore. I think its given up ground to ten cent and even some of the alibaba properties if you look at their year over year growth theyre down 8 in terms of core business theyre not executing. I think this is ultimately a case where this is not even about a trade war stock. This is about a company that needs to get its bearings. Coming up, take a look at the spike in this security n the surge holds its own cautionary tale. What happened and why it should make you pay a little more attention to what is in your portfolio. When the world gets complicated, a lot goes through your mind. How long will this last . Am i prepared for this . Are we prepared for this . With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations, with access to taxsmart Investment Strategies designed to help you keep more of what youve earned so youll know youre doing what you can for your family and your future. Thats the clarity you get with fidelity wealth management. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Change is certain every single day. Even in the pandemic, ive learned a lot about myself as a business owner. You know, pulling yourself out of the tough times and pushing through things. Its so exhausting, but if you really want it, you can have it. You just gotta sacrifice, you know . Welcome back to fast money. An etn explosion robbing one of credit swisss leveraged funds after some very unnatural trading in the overthe cou the r market huge the premium to its net asset value. Great to have you with us to explain this all it seems like the weird activity in this particular issue, this etn, Exchange Traded note, really happened starting last month when Credit Suisse announced it was delisting this and it wasnt going to issue more shares at that point. Correct so understand what occurred, the first thing we have to realize is that it lost all liquidity. They made decision Credit Suisse did to allow the etn to no longer be listed on the New York Stock Exchange as a result it lost all liquidity. It went from trading over 100,000 shares a day to just a few hundred a day. As a thank you very little to the remaining shareholders, Credit Suisse suspended all future creations it took away the major mechanism that allows Exchange Traded vehicle to track their underlying benchmarker index on top of that we know there was Short Interest going into this event. We know the numbers are sketchy but upwards of 15 million in july was short the irony here is that technically the short sellers have the story right natural gas has gone up significantly. As a result the benchmark has gone down significantly from 300 to just over 100 in value. What should be a massive profit turned into a nightmare situation for these short sellers because the price disconnected from the underlying and went up to 24,000. The short sellers were in a really crazy situation at this point, thats when the speculation began. Why did it disconnect so badly you could go as simple as saying its trading on an inefficient exchange and you really shouldnt be trading over the counter on a vehicle like this to something more sinister was something trying to manipulate the traprice knowing there were short sellers out there . Really that brings us to the situation we have today. Could this happen again absolutely. We have an enormous number of etns delisted this year. Theres 57 currently its not just Credit SuisseProducts Deutsche Bank has some any of thosevehicles could at any point in time have a significant decoupling to their underlying reference based market and have a similar situation occur. Its tim seymour. I guess my question is, do you see these as more commonplace around commodities this isnt what happened with the oil fund earlier in the year, but we have seen this in energy and oil and gas etns in the past is there a message here for investors about etns absolutely. Its an unsecured debt obligation to that issuing bank. Also with an etn its a 33 act vehicle. An Exchange Traded fund is regulated under the 40 act and comes with a lot more safeguards with respect to the shareholders so the etn has a lot more event vehicles associated with it. To that event when you see something thats three timed levered theyll have an acceleration option or something if the market goes crazy with a number of oil products or vix products and they can just accelerate and close the product. Something that bothers me much more than the etn vehicle itself is this idea of delisting the etn. They could choose to accelerate the event and therefore instead of delisting, return the money back to the shareholders at the underlying reference benchmark its really difficult to understand why you would be left under than to continue to capture your fee. Thank you so much for joining us and explaining this complicated trade. Guy, we dont often talk about these vehicles because they are very dangerous but in light of the onslaught of Retail Investors entering the market right now, we thought this was very important because an issue like this might catch your eye you see huge percentage gains and the robinhood crowd might think hey theres momentum there, but its really, really dangerous. Of course it is we try to point it out whether People Choose to listen or not is up to the individual you notice these seem to be happening with more regularity over the last few months you could attribute it to whatever you want but its extraordinarily dangerous. This speaks to a much larger problem. You think i understand what this note was surprised of, this threetime levered note . No i understand the difference between an etn and an etf. Obviously the discrepancy can lead to these types of moves with that said, you really have to know what youre getting yourself into. As much as people like to think this is just a huge casino and things only go higher, a lot of people are learning the hard way that the way down is a lot worse than the way up. In this case, the way up hurt a lot of people as well. Coming up, its been a rough ride for casino stocks but there is one name catching in now. We look at Penn National welcome back to fast money. A bad hand for casino stocks National Games revenue going basically bust in the second quarter. The nations casinos were closed for much of the quarter so it really should come as no surprise that the results are dismal the q2 release from the American Gaming Association shows revenue dropped 79 year over year, slots, table games, Sports Betting all plummeted but look at igaming thats the Online Casino games up more than 250 . Its only offered in some way, shape or form in six states. States looking for new tax Revenue Streams may be inclined to consider it now ohio broke its record for highest monthly ggr ever, 12 higher than last july even with capacity restrictions in place its gross daily revenue is up 19 . South dakotas daily gtr up almost 43 indianas has risen 7 new jersey sports books raking in 25 more in bets this july than last year and the industry has cut costs in ways that really have improved dramatically. We have learned from the aga and the companies themselves that the players are younger and theyre spending more per visit. That may not last as other Entertainment Options come back online, movie theaters, concerts, inperson sports some of this spend may have been fuelled by government stimulus and these padded unemployment checks but the industry is betting it can convert some of those younger players into loyally members for the long haul. Big calls out today and hi jp morgan saying caesars is a high risk high reward stock. Would you roll the dice here, bonaw bonawyn eison. Short answer is no. I understand the bull case its really sports and Online Gaming i understand that. If youre betting on these, you are betting on the consumer. Youre betting that the economy is going to continue being what it has been historically which is being driven by debt driven consumer spending. If youre looking at unemployment, consumer confidence, the grappling, the back and forth were seeing in terms of what stimulus and Unemployment Benefits are going to look like and you also overlay that with the facts that banks have raised their reserves for bad debt where is this going to continue to come from so the short answer is no. I mean, granted, this is a high risk high reward bet were looking out to december 2021 if you want to buy it, stick it in your drawer, i can understand it its a speculative play. Are they in your drawer, guy . There are a few things in my drawer remember haines brands got a few of those listen, the ice breaker breaking it down, man i am so with him on this we goof around but this actually worked when this stock traded up to 109 before the Broader Market really got on its giddy up we talked think about being a tell then it traded back down to 70 we said this is your line in the sand go back to where it held for a month. It was that 70 level. Get out of this stock once it prints 90 thats your exit level draft kings to me is interesting. Reports tomorrow morning our main man the General Mills pitched this one a few weeks ago. This report is going to be really interesting and is going to give us a sense of how focused their guidance is on football coming back in the fall daily fantasy is obviously important. Just kind of sports gambling in general. The Options Market is implying a 9 move in either direction. In this stock is down, i think you buy it for a trade into the fall as investors start looking past some of these sports closures. Casinos to cannabis. It is weed week here on the show weve been bringing on some of the industrys top execs today we are taking a look at green thumb which reported better than expected earnings yesterday after the bell ben, welcome. Hi. Thanks for having me back. The analysts were very enthusiastic about the Earnings Report up 15. 2 quarter on quarter mainly on six new two openings, two in illinois, which just kicked off adult use in january. How do you think about store openings in this dicey economic environment right now . For sure something the team spends a lot of time on. This is early innings for u. S. Cannabis and the u. S. Consumer is interested in this product. There is a lot of demand particularly east of the mississippi. So were fortunate to be able to open up stores in illinois, pennsylvania, ohio, florida, new jersey, et cetera as the u. S. Consumers demand is met for cannabis. Is there a number in mind of stores by the end of the year . We have 48 stores today its a little hard to give precise guidance with covid19 and a lot of inspections we continue to look for sites. Construction is ongoing and we will continue to open stores. 52 gross margin. Some analysts saying theres possibility incremental margin upside to the story. What do you see as the primary driver at this point is it more expansion into the higher margin geographies . Is it expanding into the area where you have a great Production Capacity . This is a branded consumer product. As we Scale Production, large Scale Production of Consumer Products making more Branded Products like dog walkers, we can drive down the marginal cost and drive up gross margin. Look at illinois the rate is at a record high of 1 blgt 1 billion on an annual b and we think theres much much more upside to come. Ben, its time. Thanks for coming on right state at the right time seems to be how gpi has done this your profitability separates you from most of the players in the industry how should investors many have been burned by cannabis stocks how should they value your company . What is the most important valuation metric i think its Free Cash Flow but id love to hear from you. Thats a great question you want to partner alongside management thats aligned with shareholders Whose Mission is to drive long term shareholder value. The industry has evolved in terms of how investors are viewing valuation from licenses to revenue to ebitda to Free Cash Flow generation we are profitable generating free cash. I think you need to look at the size of the opportunity. This is very early there are many multibillion dollar markets being opened across the country and states and green thumb is wellpositioned for those. If you look at the market size opportunity and the multiple of ebitda and Free Cash Flow generation or growth, anyway you slice and dice it, u. S. Cannabis is cheap ben, great to speak with you. Thanks for joining us. Thanks, everyone. Tim, youre excited about this Earnings Report its amazing how the conversation has changed from a couple years ago when cannabis was sort of the speculative play and now were talking about Free Cash Flow. You brought up the sales growth same store sales in stores open more than 12 months up 75 the tiekt sid theres no question this is early stage and we dont really know where demand is but its only moving in one direction the excitement around the sector was a little bit clouded by the realities of Capital Markets but there are companies that are executing here and gti is one of them. Coming up, jim cramer on stock splits you say the customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. Welcome back to fast money. Check out apple and tesla both surging double digits since announcing stock splits jim cramer thinking about ten other big names that could benefit from a stock split including amazon, microsoft and facebook as well as chipotle, home depot and more. Which of these names look like a best bet for a stock split guy . I dont think cmg needs to be a 1200 stock. The company has been a monster i understand what jc is saying here, but given the parameters that you just laid in front of us from those names it would be cmg. It sounds like you feel like youre being constrained by me offering you some choices. You have Something Else you want to choose . Okay. You know what . I do feel constrained. I thought Restoration Hardware would be a natural one to split. There you go. Tim, what do you say . He surprised me with that i think cmg is a cult stock. Lets be clear en amazon . How about a 401 split this is really more about essentially some of the momentum in these stocks. Well, speaking of stock splits we know what happens to a stock after a split, but what about options on a stock bonawyn, why dont you walk us through some options action 101 here id love to couple things to keep in mind in terms of options theres going to be three main things that you need to look out for, m a, certain types of dividends and stock splits were going to focus on the last one. Weve heard it ad nauseam. This is a noneconomic event no value should be created or eroded in this situation your north star is your conversion ratio or your split ratio. The first thing youre going to want to look at is the options contracts. Lets take a 1500 stock that everyone knows very well for example. Youre going to have a situation where each option already in existence gives you assets to or leverage to 100 shares in a 51 split thats going to give you access to now 500 shares in addition to that youre going to go to the strike price. That strike price is going to be divided by that conversion ratio. 1500 divided by five is going to get you to 300 think of it as an equation the amount of premium invested should not change because of this noneconomic event. Thats really it in a nutshell nothing to be scared of. Does this allow you to manage your position more easily for less money no doubt about it usually when you see stock splits, it should be volume dampening. The options premium could come in a bits becau bice just nailed that thing broken down like that. Guy, youre so proud of yourself because you thought of bonawyns nickname no. Thats a great nickname. Bice breaker is going to stick. I might just call him breaker from now on. I think thats bad, meaning good tune into the full show tomorrow 5 30 p. M. Up next, final trade you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Were committed to making college more affordable. , thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Its time now for the final trade. Lets to around the horn tim seymour . Another one of those stock splits that jim has brought forward would be home depot which i think based on fundamentals would certainly have merit maybe you get a little tailwind from the split. Dan i mentioned draft kings i think its a buy into september. Bonawyn, otherwise known as bice or maybe breaker, up to you, bonawyn. Tim makes some great points about the Cannabis Space i am not wellversed enough to pick a winner. Ive been playing it personally through the mj etf. Guy you dont have to curry favor with tim seymour you might want to take a look at nike believe it or not, thats on the verge, i believe, of making alltime high. Nke. Back to you, melissa lee. Thanks for watching fast money. Mad money with jim cramer starts right now my mission is simple to make you money. Im here to level the Playing Field for all investors. 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 is not just to entertain but to educate and teach, put it in context call me 1800743cnbc or tweet me jimcramer when i come out to teach every night, im acutely