Transcripts For CNBC Fast Money 20240712

Be the next big short, real estate four reasons why we are asking that question tonight. First, the jobs market jobless claims coming in worse than expected pointing to an uptick in layoffs. Plus a stimulus stalemate, Goldman Sachs slashing its numbers in half as Congress Stalls on a stimulus package many big businesses rethink the need for large office space. When you put these factors together, is real estate a house of pain . Could it be the next big short tim . Well, maybe number five are those new home Sales Numbers that came out today that showed the exodus out of the northeast into the south is very pronounced youve basically doubled the amount of new homes in the south region from april from around 330 to 630 northeast isnt growing. A lot of these are major metropolitan areas and a lot of these are a function of the work at home. With that, i think this is something thats very, very concerning also, as with markets you have to look at the commercial real estate a function of where have we come from where weve come from is a place where especially as it relates to commercial office space and as it relates to a lot of the buildouts and the attachment because of zero Interest Rates that have allowed a lot of inefficiencies in the Underlying Properties but still works out or have worked out i think its something thats very concerning, not just a little concerning. I think were still earlier in that trade because the reality is theres still a lot of people hanging on work from home is not changing i dont know that we stay in this capacity, but location independence means that Major Urban Centers do not need people in big commercial Office Buildings like they used to. No question. This question tonight, karen, is a little bit different from how we typically start the show. Its sort of a thinking question people see these trends out there. We dont normally think. One plus one plus one together, does that equal four or does it equal a five in that this could be a tradeable trend here thats why were asking this question people are sitting at home seeing all these things unfold and thinking is there pain in commercial real estate, is it time for some sort of a trade here well, tim touched on the most important point, which is zero rates. That has been the balance that has allowed the real estate trade not to completely fall apart. The lower rates are, the higher the multiple of earnings we dont know what the aernearns will be. This exodus is, i think, still early. You know, i look at the premier kind of name like a boston property it is only a little bit off its march low. Its a premier name but theyre going to own premier buildings that have higher vacancies than theyre used to. The stocks come down a lot. I dont own it the other one to me, new york city is not really where you want to be vornado has a particular emphasis on new york, a particular emphasis on hudson yard so that would be one even though its not far from the bottom, i still wouldnt buy it here ive kind of stayed away from the whole space. If rates move the wrong way, if rates move higher, there will be more pain here. Dan, you and i currently live in new york city there are other panelists who have their permanent residences there but not currently residing theres a lot of homelessness, crime is up. Ceos have written the mayor complaining about the quality of life its only a matter of time until they decide, you know what, maybe new york isnt cracked up for what its supposed to be considering how much were paying in rent and how little of a footprint we actually need. I think thats a real near term thing right now if youre on the streets of new york city in the last few weeks, you realize this city has come back to life theres a lot of residents who have come back to send their kids back to school. Let me tell you ive lived in new york city for almost 25 years. I remember what i was like after 9 11 and the Global Financial crisis these were really blips for this town for all intents and purposes i would expect the same thing to happen here. I understand this is a different nonquantifiable situation as it relates to commercial real estate, but the people of new york who have been here for decades and decades who make the city what it is, theyre not going anywhere our friends who were out there at the beach or wherever they up in the country, theyll be back. There are lower lows to come, but the one thing id say to karen is Interest Rates arent going back any time soon i expect youre going to see the google and the amazon and all these guys to come back in here and buy the lows of a lot of this real estate these hubs, wall street, hollywood, silicon valley, washington, d. C. , all of them, they are massive Innovation Centers and i just dont think that 100 years of progress are going to be transformed especially when were looking at the covid situation in the Rearview Mirror at some point in 2021. Dan is playing the role of the optimist so many people in the past have written the obituary for new york city and other urban centers and theyve all rebounded in every single instance where do you stand you started the show saying were going to start tonight with a thinking persons question that leaves me out people are fleeing the cities and Municipal Bond defaults are at the highest theyve been in ten years. I worked with Meredith Whitney for a while and she called the bank problem back in the day if you think about whats going on in terms of cities, cities are in trouble there was an article two days ago discussing exactly what were talking about now. I dont know how that manifests itself into the u. S. Equity market but its not encolonurag. Were on the precipice i think theres going to be a real problem with muni bonds Going Forward in certain cities. Karen, are low Interest Rates, is that going to be the savior of a lot of these weve talked about so many sectors managing to get to the other side is this another instance where if they can get to the other side, whether it be one, two, three years down the road, theyre in the clear because Interest Rates are still on their side yes that absolutely could happen but that doesnt mean the stocks are a good buy here. I think theres more pain to come i love new york city, but i think as tax rates go up, which they very well could, we could see more of an exodus of new york city. You read all the time about people heading to florida. Taxes are better, the weather is better i think those people are often highly paid in the Financial Services theyre leaving and maybe opening offices down there im a Firm Believer in new york coming back. I just dont think that means you need to buy the stocks right here. Lets settle the score. Is real estate the next big short . Joining us is jonathan lit what are you thoughts and specifically about new york City Real Estate . We wrote a paper on new york City Real Estate back in may where we suggested theres going to be a lot of trouble ahead we estimate office values will be down about 40 . Its really a game of stay alive to 25 i think guy said that we love new york, i love new york, the energy attracts the best and the brightest. Thats not going to change, but between now and 25 we have to get these office rents down, the occupancies are going to come down, the values are going to come down. The debt is going to have to be restructured between when the city thrives again, which it will once we get through this reset, theres going to be more pain to come. We said that in may. People a companies are trying to get people in the office theres a lot of resistance. The fundamental problem is the work from home phenomenon is here to stay it didnt work post 9 11 it works now the technology is there. In terms of hitting this trough metrics jonathan, where are we in this process how much progress have we made to go into those lows . Its just the tip of the iceberg. You dont have the reset of rent you dont have the leases expiring and people shrinking or not renewing their leases. We dont really know what the Net Operating Income of these assets is going to be. There are some parts of real estate which are seeing a major boom from covid. They were in good shape before theyre in better shape now. So real estate gets painted with a broad brush. Theres a lot of stocks which are up for the year and which have really excellent prospects. Youre long Residential Home builders, correct . Yes and then youre short what then if your thesis is so strong when it comes to being at the tip of the iceberg in terms of the pain in new york City Real Estate, is it empire state real estate, how long have you been in this short and how does this play out for you . We dont comment on what stocks are short we did in our white paper highlight empire state empire state has multiple problems they have the observatory at the top of the building. I think the Observation Deck is going to be challenged the Empire State Building is a lot of smaller, lower credit quality tenants. I think theyre going to skip or they just wont renew their leases then the retail, which is getting decimated right now, is going to see deterioration it was before the pandemic and it will post the pandemic. I love new york. Right now its not a pretty place to own office space. I love new york too new yorks not the only city in fact, theres probably folks watching our show around the country where across urban centers, commercial properties and commercial real estate, at least on the store fronts, have been empty for years you go around major cities and youve seen empty store fronts well before covid. Can you explain the dynamic of were they in pain the last couple of years or was it the idea that they were getting the rents and the rest of the yields made those overall investments very attractive . Or were they hanging in there and is that part of your thesis right now . We had strong fundamental trend precovid19 in single families for rent and warehouses and data centers and cell towers that hasnt changed. Even in a market Like Northern california, youre seeing an acceleration but for sectors challenged before covid, its gotten wors , it really is a tale of two real estates. One which is under an enormous amount of pressure, has seen a permanent impairment to value. To karens point, we are at record low rates cap rates are going lower. For assets that have good underlying fundamentals like warehouses and data centers and Single Family for rent, youre going to see a material valuation uplift and really incredible growth out of those companies. Thanks for being on what are you seeing in the commercial Mortgage Securities market what is the debt market for commercial real estate look like now . Yeah. I dont think it fully reflects the damage were going to see in the hotel and the office obviously it was well known in retail precovid but i think theres going to be a lot of trouble in the hotel and the office space out there its probably going to get worse before it gets better. In your view, is the real opportunity on the rate side of things or in the debt market were equity investors. Thats where we concentrate. For debt investors, i think there will be some interesting opportunities. Tim mentioned weve got viewers from across the country, what were seeing in new york, i know youve done a lot of work on new york city, but is this basically a microcosm of whats happening in other urban centers . Unfortunately the population was already in decline in San Francisco through covid. Thats declining were hearing apartment rents down 30 in San Francisco. Its just unfortunate. Like likewise, if you want to buy a Single Family home in Northern California or you want to rent a Single Family home, theyre few and far between and the prices are going up guy adami, a rather sober analysis what do you think . Stay alive until 25. But what do you do in 22 . There are a lot of places that arent going to be around in 25. Jonathan talks about a stock aiv. Its just not performing its fascinating how poorly the stock, the security has done on whats been a remarkable tape. If you look at it and say gee whiz, if you want sort of a barometer for how bad things are, aiv, im not suggesting you buy it or sell it but you should absolutely have it up on your screen to show you whats going on in jonathans world. Dan nathan, you were playing the role of optimist are you still after what you heard . Im not playing it. I just am. I mean, you know you guys talk about stocks go up all the time. Our cities are not crumbling theyre in the going away. People are sick of being with their families all day they want to get back to work. People in their 20s and 30s are sick of living with their parents again. Theyre going to go back to the cities where the opportunities are going to be. Theyre not going to be in rural areas. Is america overstored . Yes. Are the malls going away yes. Has retail been challenged with all of this Online Shopping thats been crushing it, especially over the last year but over the last decade yes. Talk about commercial real estate, yes theyre going to have a really hard time. I dont even know the tickers of them i dont know what to tell you whether to buy them or sell them ill buy new york and ill average down the whole way over the next year or so and i think well probably have a nice bottom at that point. In spirit i am with you, dan. But as the host of this show, karen, i will ask you after hearing what jonathan has said are you tempted to make a trade . I mean, hes very good at what he does vornado, if i had to do one, that would be it i love hearing bullish dan i amlo long new York Real Estate personally i hope it comes back, but im not excited at all about whats to come. We havent seen the rents roll over yet we havent seen the leases and what those prices will be. Its not in the debt market right now. I think thats interesting too. Coming up, we are all over the after hours action in shares of costco. Later, why sheila bair joins us. Welcome back to fast money. Weve got an earnings alert on costco shares shrinking after reporting results. Contessa we saw a solid beat on earnings and revenue, sales increasing since march when stockpiling was a favorite activity of american shoppers. Ecommerce coming in 90 higher. The traffic internationally is down 1 in the United States clearly covid is having an impact on the bottom line. Costco attributes a 281 million expense for the quarter because of premium wages and the costs associated with sanitation were getting some insight into whats driving the sales here. It is those core offerings, groceries, pharmacy and the like, Online Grocery grew several hundred percent. Fresh food was an especially strong driver of margin improvement. They mentioned reduction in spoilage still, travel is soft, though it is seeing some modest improvement. Other ancillary offerings are soft finally theyre noting some hiccups in the logistical supply chain. Theyre still having problems keeping sanitary wipes and gloves in these stores they have just started taking questions on the call right now. Keep us posted. Guy, i know you know this, you look at charts all day long. Im sure youve seen this one on costco its been an underperformer versus retail specifically during the pandemic. Yeah. Its obviously trading off here. It came smack in the middle of the range in terms of ept estimates. At that valuation its not good enough margins were okay. Everything was okay. It was not a blowout quarter so the answer is how you trade the stock. I think the stock made a prior alltime high back in february around 328 quite frankly in this environment, i think thats where you buy it 3 328 is your entry point. Tim, you like costco here i like costco i think if you look at where their ecommerce sales up over 90 , thats a great story. Relative to the marginal increase in that business for them compared to a walmart, theyre not winning the war here theyre winning some battles relative to themselves i think the pressure thats going to continue to come from walmart plus and the Pricing Power and this was nothing in the margins there that got you really excited that their business is running a lot more efficiently. I think where we may go in the fall with covid19 should continue to be constructive. This is a stock that although it had underperformed its retail peers, it was up 25 into this number off of june its had a nice run into this. Doesnt surprise me to see some profits. I like walmart heres whats coming up next time to get bullish on banks . One of our traders is starting to see light at the end of the table. Plus, sheila bair warned us of danger if ngsscore didnt pass another relief bill. What she says now after months of dead lock in front of you lik. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. How did you come up withd opened all these backstories . Tudio. Dont get mad. Get e trade i got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. Welcome back to fast money. Banks catching a bid today on the back of a pair of upgrades from Goldman Sachs and wells fargo. The group is still underperforming the rest of the market this year karen actually bought some banks today. Which ones, karen, and why as you know, i amlong banks i am long jp morgan, wells fargo and bank of america. I hadded added calls and call s expiring october 16th. Im really just playing for earnings i think its setting up well into earnings because the stocks have traded terribly theyve been a hedge on making money on any of my portfolio i think expectations are so low now that the bar is low. I think theres a good chance they beat by a fair amount and if they dont, i dont think theres that much more downside here im playing really for the shortterm i think this is too low for earnings its coming up october 13th. I think theyll all be that week. I think the headline really captures that the banks love the markets in 2020, but the markets dont love the banks yeah. It seemed like an easy trade most of the year to fade every rally in the banks and there havent been too many dramatic ones theyre outperformed the broad market here. To me, they were showing some relative strength at the beginning of september but there were no shortage of headlines. It goes back to the rates where they are, exposure to loan loss defaults and bankruptcies. They have a lot of exposure there. Theyre more reflective of main street than wall street. If you look at the outperformance from investment banks, theres a huge spread there too. To me, i think you could see bank of america back in 20, jp morgan back at 80, Morgan Stanley back at like 40 bucks. I think they have one more leg lower. But that mid october week is there a trade there . I dont know if you start that trade today on september 23rd for october 16th. Lets talk more about the health of the banks. Joining us is sheila bair, former director of the fdic. We were just talking about the underperformance of banks, the stocks and we also were talking to a real estate Hedge Fund Investor who basically said theres a big downturn to come yet in commercial real estate you yourself say that credit losses take time to work through the system what does that mean for your view of the banks . So i think you do have to distinguish between banks that have significant Capital Markets activity to those more the bread and the butter so i think the banks that have significant Capital Markets activities have actually been enjoying a significant earnings and revenues from those businesses so i think you do need to distinguish in terms of a Business Model for the banks, their primary focus is lending theyre the ones we need right now. A loan has to be delinquent for a certain number of months until it counts as a troubled debt theres a lot of forbearance now. All of that can kind of map what eventually may be the credit losses for bank lenders. I think theres still a lot of questions. Even though the investment banks are benefitting from all the fed support especially in the bond market, i think what corporations in the u. S. Have issued Something Like 2 trillion in debt now. The whole year is a record you kind of wonder how much longer that will continue. But its going longer than i thought in terms of the big banks. Because of the fed interventions and the Capital Markets, theyve been doing better. Sheila, Warren Buffett recently pe recently pared down his us Bank Exposure citi for example trading at 62 of tangible book, is that telling you something of a larger problem were just ignoring or missing . I think thats another problem with these very large institutions theres really an issue. Youre always having these surpris surprises. It looks like citi this is endemic to a larger problem they had with their system. I was very disappointed that more of that hasnt been fixed but they are very large, very complex, very difficult to manage so you always have these regulatory surprises whether its missed payments, whether its antimoney laundering that kind of goes hand in hand with investing in a large bank youre never quite sure what youre going to get. Sheila, its karen. It takes a while for losses to go through the system, but weve seen front end loading of loan loss reserve to cushion those losses what do you think about the size of the reserves that have been, i think, enormous so far and will that be enough . Thats a good point we had a new Accounting Center this year. We were constantly playing catchup as these loans were going bad. Thats a fair point. You know, im not a Bank Supervisor anymore i cant see what the examiners are seeing there has been some regulatory forbearance in terms of letting loans become delinquent for a longer period before you have to start counting them as distressed loans they may be making Bank Statements a little healthier than they might actually be. If theres a resurgence, all bets are off that could change if we get into another bad situation with the pandemic where, again, banks are very exposed i know youre long now i wish you well on that bet. Im not owning any banks now maybe very telling. Dan . Hey, sheila last week you tweeted something that kind of caught my eye it was about spending here in the u. S. Youre talking about a busted budget here and youre talking about what subtle projections are. Can you talk a little bit about budget deficits, what it means for growth are we thinking about this the right way . I think the fed, bless their heart, the fed is buying a lot of federal debt. Jay powell has our backs the feds going to buy it. Good i dont think that should absolve us of the responsibility of being smart about the money theres a lot of focus on that you look at 2 trillion of corporate debt thats been enabled this year through the feds intervention, Interest Rate policies and direct intervention from the Corporate Market where is that money going . How are we spending it private payrolls are below estimate i still see dividends and buybacks going out thats fine. If youre issuing debt to pay dividends and do buybacks, i dont think thats a particularly productive use of the fed going out and taking the risk and backstopping the corporate debt market. Even in the private sector in terms of the Monetary Policy and the amount of dim deadditional thats facilitates, what are we doing with it . These are more longstanding issues not tied to the pandemic, but we use intermediaries for so many of these federal programs, whether its health care, education or Financial Services, housing. To what extent are these programs becoming coopted by the intermediary we spend so much more especially on education and health care per capita than any other country in the world and we get worse results, frankly thats because the design of all these programs have been coopted by the intermediaries. I wish we would get a little smarter on that because we spend a lot of money already nobody really talks about why are we getting such bad results spending these astronomical sums the answer seems to be spend more, spend more, spend more watch how youre spending it thats really something i wish we could focus more on do you not own banks because you choose not to own banks or because of a conflict of interest policy that you have to abide by no. Its not a conflict of interest policy you couldnt own bank stocks when i was a regulator but no i have not gone back in i dont feel like they have as good a handle as they should as you know, i was a big critic of citigroup i thought they improve add lot and ive been very disappointed to see what im seeing now in terms of a lot of the problems they should have fixed that are apparently not fixed thank you i think the headline there, karen, is that sheila bair, former bank regulator, doesnt feel like she has a good handle on what is going on at the largest institutions. Okay. Why do you think you do why do i think i do ive been in them a long time. Theres two parts. Theres whats actually going on in the bank and then theres whats going on in the bank equities sometimes those might disconnect i think the bank equities are discounting a lot of bad things, maybe the kinds of things sheila is afraid of. Why the Airline Industry could get billions more in government aid even as countless other industries continue to stgg plus, tesla gets skewed. Well tell you about the unusual activity surrounding tesla options. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Thousands of jobs hang in the balance as federal airline aid is set to expire at the end of the month industry executives have been lobbying the white house hard for yet another bailout. But that isnt sitting well with everyone in fact, we have been talking about this on this show for weeks now. Check out this exchange this morning. Are you prepared to go into bankruptcy rather than take taxpayer money that would ultimately hurt your shareholder in the shortterm if youre really here to care about employees . The whole thing doesnt make sense. Andrew, i understand the point youre making and you know, i think this all comes back to making sure the taxpayer gets value for money what im saying is i believe this Program Offers great value for money. If these mass layoffs take place, there is a real cost of that and its a significant cost interesting argument to make, but yet there are plenty of other industries whose ceos can probably say the very same thing, that without a government bailout, a handout, not a loan, but a grant, they will have to lay off hundreds of thousands of employees as well. So why is the Airline Industry and the airline employees a p protected class . They feel that some sort of National Security situation with the airlines no, of course not. We talked about this good for him for pushing back. We said it a couple weeks ago. There are ways to raise money without going hat in hand to the government we also said when things were going really well, all these airlines and im painting with a broad brush, were using 90 of their Free Cash Flow to buy back stock when they could have been preparing for a rainy day, understanding that nobody could have seen this coming, but to a certain extent, i said it then, ill say it again. Theres a lot of responsibility that comes with being a ceo, that comes with being an airline ceo. Going to capitol hill hat in hand is not one of those responsibilities, in my opinion. I totally understand that there are 30,000 jobs at risk here and im very sympathetic to that, but im not sympathetic to the csuite guys and gals. You have a case where a lot of these airlines feel like they might not need it. There are some that are not out there robbing, lets be clear. American looks like the only ones that are really pushing to get it tomorrow. I think weve also talked about the Inflection Point for investing in the sector. Maybe that was the day when actually you saw 50 of pilot cuts at delta air lines, for example. These were important moments having the airlines being able to run and reel in their businesses at a time when International Travel is not growing. Domestic routes have been coming in by the week ever since getting some optimism in the mid summer the reality here is i think investors need to understand what the Free Cash Flow dynamics are or lack thereof. I think if you look at united or a southwest, youre talking about at least at the current burn rate, the ability to get through 2021 right now thats all we can really do. I think thats the Way Investors need to approach this. Dan, you brought this point up with sheila in terms of return for the spend robin hayes also made the point we want to make sure taxpayers get their moneys wort ah as we. The line is very hard to draw here yeah. They need to get their moneys worth at much lower valuations this is the sort of stuff we were talking about in march and april. This is the stuff we remember in 2008, 2009 and 2010 when the government was taking stakes in companies to save them ill bring up boeing, closing at its lowest levels in three months this is a stock that acts like it needs something its not getting here looks like lower lows. Again, theres effects of all of these airlines not getting what they need. They need to raise some capital and put some confidence back in investors. They do have options. Theyre just not palatable its not like the Capital Markets are closed to the Airline Industry. Right i think we saw the government bail out gm if the Capital Markets wouldnt the equity went to zero and the government took a stake. We saw them do it with the banks. That was good for everybody because they helped the banks and made money they should get equity here if they want a bailout. Coming up, does tesla have more charge left in this rally first, grab your boogie shoes. Well hear from a Red Hot Company raising some big funds should you get your foot in the door on this trend i felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. Welcome back to fast money. If youre a sneaker head, you probably heard of the goat group. Theyre an online sneaker marketplace that just raised another 100 million in funding. Joining us goat groups ceo eddie lu kwh do people have more time to spend on the platform or do they have less money to spend on the platform first and foremost in terms of funding, were so happy for the team we started six years ago with just a sneaker marketplace now we expanded into east coast r accessories. In terms of growth, were at 30 million members now and 600,000 sellers. What we saw in terms of the trend recently is that it already started precovid there is already a shift toward ecommerce before covid. Shopping in stores is no longer an option for the majority of customers. Were never turning back were seeing that our customers are saying, shopping online is actually a superior experience to shopping in a retailer. We have over 100,000 styles to choose from on goat. In a retailer there might be 200 styles on the wall they might not even have your size after they choose something. We dont have to carry the inventory risk that drug and alcohol retailers have later you can see our Community Content to see how to wear the shoe as well you know im a huge fan of the goat app here. Real quickly, what are some additional categories that you want to use this capital to expand into . Lets be frank, as sneaker heads, we lover what youre doing there. Whats next . The main mission for goat is to build a Global Platform that brings the greatest products together from the past, present and future we can buy iconic jordans from 30 years ago and mainstream products today we just started our apparel and accessories. As an example of us launching products into the future, we recently just partnered with Alexander Mcqueen and their latest line. The whole vision is to make people look and feel their gr t greatest. With the stimulus checks running out, are you seeing that pressure on your business . There are tailwinds such as stimulus checks. But what weve seen is that with our customer its not just a buying thing like we have two sides of the marketplace. We have buyers and we have sellers. On our sellers side we have 600,000 sellers. Many of them this is the first time theyve ever sold something online weve seen that a lot of these younger sellers are buying shoes, theyre selling it on goat, making money so they can fund the things they covet its a cyclical market and were excited to help facilitate the transaction. Thank you coming up, its been a bumpy ride for tlaes investors this month. Options traders say buckle up because shares are ready to accelerate here. Dont settle for silver 1 for diabetic dry skin 1 for psoriasis symptom relief and 1 for eczema symptom relief gold bond champion your skin the big events are back. Xfinity is your home for the return of live sports. Welcome back to fast money. Check out shares of tesla zooming higher today its what happened to tesla options that really caught our eye. Mike khouw has the action. Tesla always very busy in the options market, representing over 5 of the total u. S. Options market in terms of volume today weve been looking at the fact that upside call options are actually placed higher in terms of implied volatility and the downside put options reflecting investo investors interest in the october strike calls todays activity was concentrated mostly in short dated options. The 400 strike calls that expire tomorrow were the most active trading over 100,000 contracts at an average price of 5. 50 it seems option traders continue to be interested and believe in teslas upsidehere interesting options action tomorrow 5 30 p. M. Eastern time. Up next, final trade. It is time for the final trade. Lets go around the horn tim . I do think this is the kind of transaction people wanted to see with this stock and its been languishing get a shot in gilead karen mine is ulta beauty i think that they can make it in a resurgence or without. Either way, i think theyre not expensive with next years earnings dan treasury yields have been stuck in the mud i think the tlt makes a move higher that means rates lower in the near term. Guy sheila bair only has 11,000 followers on the twitter that is ridiculous, folks. Follow the sheila bair on the twitter and look for reversal lower in the dollar whic 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 you, so call me 1800743cnbc or tweet me jimcramer what really happens if theres no stimulus . Ive heard numerous politicians argue the economy is strong enough, we dont need a