You might want to take that had vice this year. And. Moving for speed. Go thats exact lip what shares of tesla have done. If you are worried about next years earnings. Well tell you how to protect yourself. The action begins right now. Lets get do it. The nasdaq 100 posted the longest winning strikes since 2009 t. Index hit high, thanks to earnings from amazon and alphabet, scoring on record highs. It aint over yet. Next week comes the big kahunas, facebook hitting an all time high t. Potential to spark a 40 million shift. Should you continue to buy, which is a better buy, apple or facebook . Dan, what do you say . The earnings we saw last night shouldnt lead you to believe we will have natural surprises next week t. Way investors are positioned, we know they are overweight. They are massive gainers, driving that massive outperformance. The nasdaq is up 12. 5 , versus the s p up 6 yeartodate. I hate to be so blase about it. Its move on average, 5 . Id be shocked to see it move outside of that range. Why would people be looking to offload their winners right here . It doesnt make a whole lot of sense. In apples growth, if anything is poised to move, i think facebook is it. Bake amy, they have a lot to look up to, expectations are year on year, for a 120 income year on quarter. Thats a high hurdle for anybody to get over. What does it ends up being . We all know. Is it momentum peak for the crowded successful names or are they going to lead . Lets put the current price in action. Thats the biggest annual rate of return except we are up 60. Then, of course, 98, 99, we are up 75 each year. The question, how much more can you do . I got some charts. We will first do a round of would you rather . We want to see, dan you had to put money to work right now . Id probably go with apple. There are catalysts identifiable. As far as facebook is concerned. We dont know. They make acquisition, they use their currency, they use their cash and work out. To me, theyre the ones that have more surprise, apple will be more, you can look down the road and see whats coming. I think we are obviously at the very heavy levels at this point. I think they present significantly lower Downside Potential refx. Given the fact thats the bigger grower, if there is a way to play it with options, tease, then i might lean. I wonder what you will have. Carter. Also, im going to go with facebook, which means, lets go long. See if we can figure it out. Apple and facebook first. Lets get ultimately, is this maybe how it all ends . Apple, what . I think you can draw the lines like that. Something of a head and shoulders bottom t. Question is, has it played out . Whats the price objective . Typically, its to the high, maybe through a high a little bit. What you dot is the breakout. Apple has check back risk which is often what we see after a stock moves two and also often you will revisit. So my thinking is apple has risks. By contra distinction, this is facebook, this, obviously, what trend is. In fact, few put lines on it, it has lived within this quite precise can em. The question is this meaning we have been at this low, at this high, so to speak. Are we getting close . I think we have a little more to go. We will stick with the bullish bet on facebook, we were working on a month or two ago. Lets put it into perspective. Okay. These are top stocks. Theyre valued at 2. 3 stwrl. 1990 to sprint. Take a look alt these numbers, market cap, cash flow, its identical. The top five are going faster. Its a better bet. This is a chart 2. 8 trillion. It has bounced off this line perfectly. I bet its a little steep. Have you the risks that you come down like this. So this is whats happened going forward. The top five unperform. So back to the chart. I bet you this is also whats going to happen. If i had to pick apple. You pecked apple with an options trade . I think we have earnings coming up. I was looking at the mayseptember 155 call spread. Basically the options market. This is a bet that will make it move to the upside t. Premium is going to decay much more rapidly than the longer dated one. We will use that catalyst and push along that longerdated call, you can sell the two after may expiration few want to do that. It makes perfect sense for a stock that has gone on this leg higher here. If this stock couldnt go up 10 . The idea of steling your data premium, i got to tell you, that chart of the five stocks, when you look at the move. Its scary. What do you do when you buy an index . The collective growth and all that stuff. It makes me nervous. I havent seen it. You said you saw it in the 90s. In effect they reached, market are always buyers to a few successes. Just what in particular because of the stellar growth. Theyre all the same types of things. Jim cramer makes this point all the time, few own the stocks rather than the etfs, you would have alma generators. Shares hitting a fresh new high in footodays session to r the glimpse of what the upcoming electric semi truck will look like, he projectsed they will add four new gigafactories saying it can be driven around like a sportscar. This comes as tesla gelts ready to report next week. How should you play it . Its up 70 from maydecember. I think there was a loot of trepidation t. Rhetoric was fought going to be particularly favorabl favorable. The stock had that massive light higherch ethink there is risk near the 280 level. You should consider near dated protection. When it closed 314, can you buy the may 310, 8 for that buying. Selling one of the may 280 puts at 2. It breaks zoup at 3. 02. You have break even protection down to ten or 11 or so. This trade makes some sense, it has given q1 deliveries. They have raised their capitals. Shorts have gone sweet. You cant short a stock like it is. It is obviously not trading on trailing fundamental also and the future is pretty murky. Energy side is the side of duke energy. We do you think is more vulnerable facebook or if there is trouble . Both. Thats good, hollywood. What do you think . Its a good one. I think facebook is a 400 billion stock. People will be left scratching their head. You loved the chart. And its worked. What do you do now . I think we will stick by it. What do you leak better, facebook or yeah, thats clear. I think i will go with tesla. Same for me. Got a question, send us a tweet. Check out our website. Check out our super cool news letter. Maybe 2 billion already have. Not 2 billion. Lets not get carried away. If you werent worried about the monthofmay, well teleteach you how to protect your portfolio. Plus. Thats impressive. Not nearly as impressive as mikes option trade. He has a way to be keeping more cash when options action returns. Zblmpb zblmpbls. Options action, the s p 5 result just posted the possible month. The stocks near record highs. Should investors adhere to the olded a annual, sell in may, go away. Bob. Reporter this is one of wall streets most famous add annuals. You can argue why it works. Over the long period, there is something to it. Since the s p 500. Its been up since a gain during november to april period. They first brought this connection to light back in 19 ex. It sounds good. In the past ten years, theyve refined this call architect nickal signal and a signal based on president ial cycles. The test signals will get you in earlier and longer than may 1st. The opposite is the market was trending down. Dont sell in may in the third and fourth year of the president ial election psychole when markets tend to out perform. Make a trade every four years, combining these signals produces turbo charge results. An annual loss to the s ps from may until october compared to a gain to april. A 10,000 investment in 1949 to the maytookay period would have 45 million. Its a loss of 5400 the same will produce a gain of 2 million plus you can see why it has staying power. How can you protect yourself . Lets get to the call to action. Lets talk about ensuring your portfolio. One of the things you want to time is hedging, if you do it all the time, it will create a drag on your return. The next thing, are you concerned about a big decline or just looking at a potentially modest decline, finally, volatility. The volatility of the broad market and at the s p you can see what i was talking about before him right now, you would have made money if you were there here, here and here. Natsz five times. The rest of the time you would have been spending some money. That also emphasizes how important it is to focus on that timing. Now we will look over the last year or so. If you can imagine you are looking for approximately a 1 return, maybe you are hoping for 3 . I want to have this much upside. I want protection down there. You can do that with something called a collar. You can use those proceeds to help with the 230 strike points. They will be paying a dividend of about 1. 18 estimated in june when you have 3 from the upside. Anything worse, we got you covered. A e42 hedge, doesnt sound too bad, dan . New york et doesnt, hedge funds used to slack on a bunch of spy shorts. I prefer the sell out the money call, which mike is doing, using the proceeds to buy a put. That is the collar tan selling the spy. You are giving that portfolio room to the upside to appreciate. You also have that disaster preex below. You didnt pay a lot for it. Rather than neutralizing the potential gains. So i love the idea of a collar. I like it more so on a single stock. I get why you are doing this. Insurance is something, if one goes with seasonally, there is another ran, we have construction arguments foret. Energy continues to fall to the consumer. This crowding into these very successful but perhaps overdone growthage. One 79al point is if the market doesnt take the stairs up ap the elevator down, call lars protect you against the catastrophic crash. Thats essentially what we are looking forward here. Still ahead, the trade open mcdonalds. Definitely getting his money in a week. He found a way to have more cash. Dig deep into those pockets. Think nice shots, sends it to us. Much more options action right after this hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. 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Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at Td Ameritrade. Welcome block to options action. Its time for the upside calls where we look back on our winning trades, last week mike got hungry for mcdonalds and made a killing. Heres how. On options, a how to make fast profits, risk less so you can make more. It gives us his bullish bet on mcdonalds. My thoughts is they were gentleman higher. Buying the stocks, 100 shares that cost more than 13,000. He thought he could buy it for less than the cost of a big mac . Its simple, mr. President. Heres how. To make a bullish bet mike bought the call for 3. 40. That is the most he could lose on the trade. Shares arrived above the strike by more than the cost of the trade or in this case above 13840 by eseptember expiration. It get better, that call will increase in value faster than the president donalds stock, meaning more money in mikes pockets. This is the time of the trades, mikes trade is right in the sweet spot. There is still plenty of time on the clock. There isnt, but options action spans all over the world and wants to know one thing, what will mike do now, if he thought it was so great, have you bought shares up around 6 . Not bad. That 135 strike call is now worth 740. That is a return of 120 in one week. Do you keep this trade on . The day it came out, it was trading 141 at the time. The advantage of option is the fact that you are risking very little. You have that upside. I said you could take a portion of the profits you had and roll out and up if you wanted to make a bullish bet. I think we got a break. Thaik take your money and run. We cant all be winners. Thats the case of dans bearish bet on tech. I want to look out to july. The etf was trading 132 half. You can buy the july put pay about 150 cents on that. How are you managing this trade . Listen, this is one i like on an outright basis. The concentration in all those five stocks, they make up 40 of the qqq. They cant keep growing like this or this much higher. So the trade was for 250. It broke even. Thing to is at 136. Its worth about 140 right now. It makes sense on long premium directional trade. Thats how you manage. We have plenty of catalysts that can get the market to rock. We are looking at this for insurance. Up next your tweets and the final calls from the options pits. App chat on thinkorswim. Only at Td Ameritrade. Whoa,i just had to push one button to join. Its like im in the office with you, even though im here. Its almost like the Virtual Reality of business communications. No, its reality. Intuitive one touch Video Conferencing is a reality. And now its included at no additional cost with vonage business. Call now and see why 3,000 companies a month are switching to vonage. Business grade. People friendly. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade back for some tweets. Tap, what are your thoughts on using out of the money radio put spread to minimize or eliminate the cost of protection between mike ko . In a situation like this, i think its a ricky prop session actually. Normally i love this strategy. The problem is, selling more puts than you are long, you want to sell our own it . Or you want to be quick, can you turn it into a put but tr fly. That takes care of margin implication sfwls time for the final call. Next week facebook over apple. The growth. Mike. And i would use countertwist on facebook for modest upside bet. Nathan. A lot of teams we talk about the directional put strategies, to me tesla is great protection for long holders. All right. Our time has expired. Thanks, for 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 money. My job is not just to entertain, but to educate and teach you. Email me or tweet me