rather watch while they are watching the cable so that's a approximate but i would say own vanguard and state street and some of these mutual fund companies. then you can have both ibm an netflix. >> that was the lesson from tween. thanks so much for being here. a lot of ground to cover it. that does it for us on "closing bell" and "fast money" begins right now. "fast money" starts right now with an earnings alert. netflix shares rallying more than 13%, company beating earnings expectations, the conference call beginning right now. we'll bring you the details throughout the hour and ibm guidance sending the shares south, stock down more than 17% over the past year. we'll bring you latest from the ibm ceo. i'm melissa lee. we're expecting volatility and here we are, pete, to the upside. >> to the upside. caught a lot of people off guard. when i was going through the reports, people asking what were the expectations? absolutely crushed the

expectations. were you look at the u.s.-added numbers, 1.9, that was a bit of a beat but you look at internation international, 2.43 million. that was huge. talked about international for a while. the rollout, getting into certain parts of europe, western europe and now i think you're starting to see some of that play out. that's why we're seeing this monster pop. >> could this be that netflix has pulled out of the doghouse? this is a stock that was up 240% over the past two years, and over the past year it's not been a good one. >> if you look at chart, again, there's a lot of resistance. see where it comes back to earth. won't trade straight up to the next level and if you look at stock and look at sentiment i think the bar is pretty low. have a call where we talk about it. i thought sentiment was average to low going into these numbers and i skit on the lower end of the spectrum, by the way, a company with a lot of competition, numbers aren't growing fast enough. year over year growth isn't where it should be, but the numbers are very important. international, where they might have more profit ability where people can expect the same. is the key the set top box working for them?

i'd stay away. >> i'll guess what dan is going to say. at the end. third quarter you're going to say that they gave such low expectations for subs that here they are, up 13% is a result of its sandbagging. >> been pretty cyclical. one of the things that also hit the stock last quarter, talking about a $1 price index for new domestic customers and that hit subscriber growth and that didn't smell great to me. now they have 57.5 million global subs and have good growth internationally and read hastings is talking about in some point in 2017 there will be a really profitable business for them, you know, internationally, but a long time to wait for a stock that trades at this multipast one. things hitting the stock is the hbo go and all the other competition and we'll see normalization, some. guys will pull up the rear a little bit and at some point netflix is a great company, a great story and i think the valuation will probably come in a little bit. >> talking about sandbagging, a stock that went from 4.80 in

search the down to 3.20. 320 held a couple of times and now we're seeing the subsequent bounce. i think 405 is the next big level. basically a 50% correction of the 480 high and the recent low. we'll see what happens. lowered expectations absolutely. pete mentioned international growth. >> and now what? >> we'll see what happens. >> it's been a ridiculous multiple forever, right? it's not like that has changed. that dynamic has not changed for netflix, but can they deliver? that's what everybody wants? u.s. subscribers and international, right? that is the big story. >> i agree. look on a three-year kegger, you look at the multiple, 25 ebitda so i don't think they will get there. at 480, the stock section pensive, stock traded all the way down to 310 is where are we now? >> even at 310 it's my expensive. 420 very expensive and 310, still expenseive. >> why give netflix a pass so

quickly, delivered one quarter and last questions, two sessions afterwards lost 20%. why all of a sudden this is okay. >> the story line i thought for a long time was international growth. could they deliver and can they deliver, and i think the fact that they are starting to show some of that delivery, when you talk about future growth, i look at -- if they can add 8 million subscribers in 2015 internationally, that's going to be huge, along with what they got to continue the u.s. subscribers as well? >> with more morning reaction, let's bring in the co-head of technology and mooia. neil doshi joins us. thanks for joining us. what's your take on this quarter? >> it's a pretty solid report. domestic side, however, did come in line with expectations. international was a little better than expected which is positive, but i agree. i think they came out with fairly conservative guidance on the international side and made it pretty easy for them to beat that. the concern that we have are, you know, now the u.s. domestic subscriber growth has declined on a year-over-year basis for

three quarters in a row and they talked about matration on u.s. side so i think competition is going to be a real big issue for them coming into 2015. you have amazon. that's getting much more aggressive and hbo go which will go online sometime this year, cbs and yahoo! now making a push so i think we'll see a lot more competition from companies that are -- that have much deeper pockets and on the international side, i think they will make good improvements there, and the stock is going to be focused the international side but two years is a long time to wait for this -- for, you know, these guys to get profitable there, so, you know, we're on the sidelines right now. >> neil, you just said it. it's a maturing -- the u.s. is maturing but they specifically talk about france, germany and other markets that they open up being a huge driver in 2015. aren't they just passing the baton to growth markets now. >> yeah, you know, i -- i would argue that france and germany are somewhat growth markets but these markets are also fairly

competitive and you have to move into australia, again, a very competitive market so it's not like these are huge greenfield opportunities for them to really take a bunch of shares. there's a lot of kind of political and local competition that they are going to have to fair, so i don't think it's going to be as easy for them to grow these markets as they have had the ability to grow the other market on the international side. >> in terms of the matration in the u.s. market, we're setting up pretty nicely going into 2015. they will release two times as many oranges in 2015 which could arguably make for an attractive sort of package to entice new subscribers as well as making it a stickier package for current ones. can we -- with desee maybe this not happening, or maybe the numbers were just last year and in 2015 there could actually be a pickup? >> yeah, definitely possible that there could be a pickup. the new content has been a nice driver for growth for these guys as well as for, you know, red e

reducing turn and we'll see how new shows will do. "marco polo" kind of a mixed bag so we'll see how they do. amazon is pushing their orange content and yahoo! is investing in original content and hbo is going to be a big wild card here, so i think in people have only a few dollars to spend, will they continue spending with netflix, maybe, maybe not, and i think we'll have to see how the original content shapes up for netflix versus some of these other guys. >> neil, great to speak with you. thanks for your analysis. we did take a look at how netflix does after it beats estimates according to show data and we found that it beat estimates 35 of the past 38 times in the past ten years. the average return the next day is about 3.25%. here we are in the after session with about four times that return. >> let's see where it goes. really quickly, is this a content company, or is it a technology company? if it's a content company it will lose big time to disney and

lion's gate and other guys already ahead of them. you have to make a decision. hearing about improved content is a road to nowhere and to stay in the grade they will have to compete with big guys. >> fascinating that we've talked about in company, you know, for so long and talk about amazon, their closest competitor, a company really spread out so it doesn't have an advantage. >> no doubt that it has competition, and i think what they had to do was create some content. they had to get out there and get content, creating content and i think that ends up working for them. there's got to be feeders. what's the growth in this company? content is one of them and international is the other. >> would you press on the short side? >> i think at these levels kind of makes sense if you're a trade and you want to make a look for a near term opportunity and make 5% because it may be a little done in the after market. this morning, the stock had a $20 billion market cap. i was looking the other way. applying a 10% move in either direction. if it was down ten and kept on

going like last quarter, down 20%. this thing was in the mid-teens and billion dollar market cap and could be an acquisition target for someone like amazon finally, because of that distribution and international growth and they do have original content. >> other major earnings reports in the after hour session. that's ibm. the latest now on its conference call. >> the conference call is still ongoing right now. the ibm cfo martin schroeder speaking about what's happening overall with the company. they did talk a little bit about what they are devoting resources to, how 2014 was a transitional year, if you will, under the ceo so martin schroeder talking a little bit and take a listen to what he's saying about where they are devoting some of their resources in this coming year? >> we're continuing to invest and both offerings and operational capabilities. that includes targeted investments in mobility, security and cloud which complement our client's systems of record as well as operational

improvements such as the savings yield from the rebalancing action we took earlier this year and more broadly deployed automation in the delivery centers. >> now, ibm also highlights this idea that those growth strategic imperatives, things like cloud, business analytics, mobile, cyber security, now represent about 27% of total ibm sales so they are trying to migrate into these higher margin businesses. this is on the heels of them reporting an earnings per share number that actually beat exp t expectations though revenues did decline for a 12th straight corner and it missed some analyst estimates. they also forecast 2015 operating earnings per share of between $15.75 to 16.50 per share. that's below some wall street forecast. hence, accounting, can you see some of the downward movement in the stock but overall the company is now doing to basically defend what it's trying to do and talk about what it's going to deploy resources to in 2015. all of that in the conference call that's ongoing and you want

to tune in tomorrow morning because around 6:30 and 6:45 a.m. tomorrow morning ibm cfo martin schroeder will be live to talk about what ibm will do to potion itself to stem the stock decline. i don't need to tell you, but some viewers remember this is the second straight year, 201, where ibm was the worst performing stock on the dow jones industrial average. back over to you guys. >> thanks a lot. martin schroeter will have a real sales job to do on "squawk box," needs to convince people to stay with this stock. >> not doing so well yet. i'm making investments in lottery tickets, and that isn't working out for me either. you parse through everything, financial engineering, revenue is key and look at guidance, this year now, 2015, i mean, they really ratcheted it down. what's the right multiple for a company whose revenues continue to decline quarter after quarter? i submit 8, 9, throw 15.75 and

then the stock price on its way to 150. >> and a problem with the cloud which is a faster growing competition and that's what was said on the conference call this morning. it's a land grab when it comes to cloud and that's when this turnaround is in part pinned to. >> these guys can only compete on price and that's low margin. they had 7% eps decline last year. they retired 8% of the shares that. goes to the financial engineering. the guys talking about it, and they are talking about buying $6 billion worth of more shares in 2015, so this is a disaster. this thing you have to stay away from all the other. >> we'll keep following netflix throughout hour and many traders are calling the european central bank meeting the most important event this week. tell you how to play it with "the gartman letter's" dennis gartman next and pete will have some names for trading after the break. glad you made it buddy. thanks for inviting me. thanks again my friends. for everything, for all your help.

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you're pap central bank is meeting on thursday and many other central banks have bet on morosing and relief. can the ecb do enough to meet high expectations? joining us is dennis garret none of "the gartman letter. request "good to have you with us. a lot of people came out after the smb move, maybe they got

whispered to and there's something else going on out there. is the bigger risk at this point that the ecb doesn't do as much as expected? >> i'm afraid that the ecb can't do as much as expected, mel. clearly the smb signalled the fact that the european central bank will make some kind of a movement the decision by the swedish central bank to cut its interest rates over the weekend indicates it did, too. no question they will do something. the question is can they do enough and the problem that the ecb has is that unlike the united states, unlike the paining of japan, unlike the bake of canada and unlike other central banks, the reserve bank of australia, the ecb doesn't have one distinctive federal treasury security that it can use to monetize and expand the supply reserves. does it go out and buy all 19 of the european union countries right now? if it does, does it buy germany and does it buy greece as disparately as they are rated by the ratings agencies, or do they go out and do something even

more extraordinary and buy stocks which is something the bank of japan has already done. do they buy corporate debt? i suspect they will probably demure and probably when it all comes -- when all is said and done will disappoint us. they need to expand and they need to go in and do something dramatic with kwooesing. they just don't have the ability to do it unlike our fed. >> dennis, it's tim. i know the bar is very high. i agree with you. let's assume they disapoint. it's been one of the big macro trades over the last month. does the euro real look at difficult rengsz and even the dax versus the s-and-p. on the side of a weakening euro and stronger dax and having to catch up to bunds. where do you go? >> i've been short the euro against the silver pound and i

think ultimately the european central bank will do what it needs to do. i don't think it will do it before the summer, so probably on this week on some disappointment you can get a two or three euro rally in the euro and would not surprise me at all as people are disappointed, but i want to keep my powder dry. short sterling against sterling and gold. i want to reduce the size of those positions in my own account, but i want to keep my ammunition on hand to put back that which i take off. i think ultimately, as i said, euro goes demonstrably lower, but there's no way that the ecb can meet the requirements or meet estimations that are into the market right now. >> dennis, is the corollary equity side of the trade then to be long european stocks? >> well, mel, all things being otherwise equal, you would have to think that if the euro -- if the ecb does ease, and they will ease somewhat, that's probably going to be supportive of equities. again, all things being otherwise equal.

the economists' early way out, they will ease somewhat, and that probably is going to be supportive of a european equities. do i buy european equities and sell u.s. equities, not sure i want to do that. would i take a shot of owning european equities going in, if you had to do something, that's a trade and you would have to hold a gun to my head and say do something before i say step up and to it. the real trade is to be long of gold in euro terms and long of sterling against the euro but not until after this report is out of the way, not until after we are disappointed and we get a bounce in the euro. you've killed the euro hard over the course of the past two weeks. a bounce is more than required. >> dennis, good to see you. thank you. dennis gartman of "the gartman letter." >> tim, what will u.s. equities do if the ecb doesn't do enough on thursday? >> i think it's a sideways trade. if anything, the u.s. equity market has been unnerved by what's going on in europe and i think it's more about greece. amazing how quiet people have become about an election that

they think the party is going to win. you have currency weakness which is very, very good for the underlying equities. trade it. >> yeah, you know, been a lot of talk about equities. the playbook for the qe here in the u.s. is don't be short equities and when you think about it, the german dr ax has broken up to all-time highs and it's hard to fade to that move in the face of someone like we know in draghi likes to use terms like bazooka. they may disappoint structurally but a lot of language committed to this working. >> would you rather -- >> like the right game. >> knows how to play it, too. >> not like grasso. u.s. equities or german equities? >> wow. >> would you rather? >> i think everybody is on the international bandwagon, so forcing me to play this game. >> yeah, that's what i'm doing.

>> i'd be long u.s. equities in gdx terms. that's what i wanted to talk about. >> i think -- i don't think everyone is on that bandwagon, fyi. >> street fight. >> next time. >> let's see some unusual activity and pete is watching ebay. >> hit a couple weeks ago. they were wrong but going out in time and buying the april 60 calls. 10,000 of those traded and today they are buying the april 55 calls and selling the april 60 calls into earnings. not an earnings play, in my opinion. there's going to be currency risks that go on in front of the earnings. i think the reason they are going out to april, want some time with those who are buying. somebody thinks ebay's got some after-hours movies? >> do you. >> i'm long the stock and the call spreads so i'm doubly long. >> has tesla's momentum finally hit the end of the road or is it now the perfect buying

opportunity and a street fight on the airlines. tag team edition. our bulls pete and tim go head to head against the bears dan and guy in tonight's sure to be peppic battle and i've got a whistle, too, which i'll be use. we'll be right back.

♪ we are never ever getting back together ♪ >> you like that song? >> t-slizzle. >> morgan stanley is the both to miss on top and bottom lines. the big bank saying it was hurt by weaker trading revenue and bank of america being added to goldman sachs' buy list, seeing upside after what's being called the stock's recent und underperformance. dan? >> moynihan was on this morning with bobby quick and he actually gave what i thought was a very succinct argument about the existing environment. the impact of lower oil. the incumbent pact of zurp and all that sort of thing. one of the cheapest and if you want a u.s. bank that's very levered to the u.s. consumer,

which seems to be one of the best things going in the global economy, bank of america is probably the one. >> what do you think, pete, financials? >> you like financials. >> i jumped in jpmorgan the other day. >> terrible timing. >> not so bad. i mean, i got in a little earlier than i wanted after earnings and i got in twice and around give or take close to where it is. i like the name though. i look at this name and jamie dimon has done what he needs to do. i think it's the federal government that need to get out of his way. >> oh. >> ahead of the state of the union address saying get out of bank's business, mister. >> i'll say this. fixed income currency trading commodities so weak, the bar is very low. but also for next quarter for these guys. morgan stanley's numbers were okay. not their core business. look to the kingpins there and watch bank of america and jpmorgan. >> quickly though, if i can defend goldman sachs, put it on the conviction buy list.

>> here's a straight line over a week and a half, where it bounced back. >> good for them. >> a good pick. >> next up. tesla, a down day for the stock despite the major averages breaking positive breaking through the key 1930 level earlier in the day. since the start of 2015 tesla shares down more than 13%, and since september down 30%. >> listen, people say it doesn't trade with crude like the solar stocks, guess what, it doesn't trade with crude. if you overlay a crude chart with a tesla chart, the same thing. 180 for a long time. buy it there. that's exactly what you do. all now seemingly all the bad news, including elon musk talking down stock, so if you're looking for an opportunity, a lot of people have been, this is your opportunity to buy the stock. pete wants to play with options, probably 100% right and with the tight stop it's the most interesting it's opinion in a long time. >> need a stability in oil because of the fact that it trades right with oil, and

whether or not that makes sense. >> doesn't really matter. >> and the solar stocks the same way. you find stability in oil which we've yet to see. another huge move down today. that's where you want to be. >> the last three days this stock has ground around. if you look at a bar chart on this stock, i think it goes to 180. the point is the correlations to what oil do are very, very key. >> 178 was the may low. >> i think alo of traders will be looking at it. i'm looking at it. i have a bearish position in options and 180 is my sweet spot for the trade. the stock is down a lot. doesn't trade a lot. tim is trying to say it's finding a bottom here but usually a story like this will turn with capitulation. won't just turn on a dime. >> capitulation is not 180. that's 140. >> next up, a deal in the oil services space schlumberger agreeing to obtain a stake in rush's onshore drilling firm for

$1.7 billion. talking about pick pentagon up and buying from the run. this is a stock that's been battered. >> two amazing things about this. an oil services firm buying someone in that space at a time when we can't find the bob in oil. two, a russian company, so when it's all off limits you have a place where people are saying we do want to buy choice assets. edcl is one of the best in europe, if not the best and a very interesting opportunity. very opportunistic. go after the guys in the space and halliburton reported, beat on numbers, cutting 7,000 workers, the bhi transaction they continue to say was the best time to do it, remains to be seen, but stay in this space. i think you nibble here and a lot of guys are telling you there is value and they look at their business and say they are looking to find the right spot. >> we're hearing more and more about companies cutting their cap "x." >> you have to show patience. unfortunately, too many people are trying to buy the bottom of this like they are trying to buy

the bottom in oil and not getting what they expected to get. the baker hughes and the halliburton numbers don't, won't take into account all the bad numbers going in. that's why i wouldn't want to fet in front of it. i think there's a downside. >> two huge movers, netflix and ibm pulling in weak guidance. more on those calls and the trades and moves ahead of tomorrow's open. stay tuned. want more "fast money," catch full enseeds anytime anywhere on your mobile device. >> and i do mean everywhere. >> go to cnbc.com/livetv to watch "fast money" on your smartphone, your tablet or your laptop. watch live or get up to speed with the latest full episodes all with one simple click. with market advice this good, you can't afford to miss a single trade. get your ticket to "fast money" -- >> everywhere at cnbc.com/live tv.

still ahead on "fast money," the netflix ceo and the company's earnings shares are popping in the after hour session. on the pete we have the latest from the conference call and big blue's big blunder. the call just wrapping up. instant reaction from a top analyst, plus, shares of delta

soar we've got our first ever, first ever tag team street fight. what to do with the airlines. it will be truly epic. i've even got my whistle. >> get out of here. >> ready to go. >> so tune in for that. netflix's earning call under way. the stock at session highs after hours. let's get to julia boorstin with the late est. julia? >> that's right. right now i heard them talk about raising more debt and how this is a really good time to raise more money. they continue to invest in originals which require more financing up front. really bigging to inon the earnings call so far was netflix's better than expected international growth adding more oversees subscribers this past quarter as company announced it will complete its expansion to all around the world over the next two years while staying profitable which is earlier than expected. hastings saying that the magic of streaming and the ability to binge watch is even more appealing and less high-tech markets. >> the success that we've seen, you know, from argentina to

finland, to have all of our first wave of markets from canada, latin america and nordics, netherlands, uk and i'll, you know, be profitable together as a group, it's just tremendous accomplishment, and the growth rates that they are seeing, it's going to be very significantly profitable going forward. >> as for upcoming competition from hbo, hastings says he expects the streaming video service to be at a higher price point than netflix but he also made a point to say even if they were to match netflix's price point he expects a lot of people to subscribe to both the hbo service and net. its saying it's not a zero sum game. >> again, in the after-hours session netflix sitting up almost 15%, did break the 400 level in after-hours trade though it's right there on the button. peter najarian, what do you think? >> i still like the numbers they put up and still think they can grow on some of the numbers, especially internationally. that seems tonight focus everybody's got after the earnings were released so for

that reason i remain bullish on the stock. doesn't mean i think you buy it up here. to guy's point. i think the 405 level is a level you want to watch close >> exactly that. take profits in the 405 if you're been fortunate enough to be long the stock. i don't think it's going all the way back down to 320 but now out of the realm of the possibility to see it 380. 405 i think it's going to hit and will stop right this. >> ibm stop, meantime, taking a hit after hours after the tech giant guided lower. joe, great to speak with you. >> nice speaking with you. thanks for having me. >> any reason in your view for investors to stick with the stock at this point? >> you know, if you're still in the stock i would be surprised. i think what came out on the calls that this is a company that's still in transition. i would characterize the results and commentary at strategically encouraging, but not showing in the numbers. >> so what does that mean? i mean, i'm listening and thinking there's no reason to be buying ibm and no reason to be

holding ibm. >> no reason to buy it or hold it at this point and what i would say is there are some interesting things going on at the company that could provide some encouraging points going forward. first they are taking the proper steps to move the tanker and getting ready of the old commoditized stuff and moving to the higher value opportunity. second, they have reset the bar to a more reasonable level. you might remember they removed the 2015 guidance and now we have a lower bar and the sentiment very horrible on this name for a long period of time. obviously that's good for those looking for our turnaround story. things are getting more interesting from a bottoming perspective and the stuff they are doing strategically encouraging and until we get a clear path on what we show up on the numbers probably won't be a need to get low. >> you have a hold rating and you're telling people to hold on to this even though we're in a bottoming process and it sounds like the tanker is turning and hasn't turned. >> right. >> so when are we going to see -- i mean, i imagine the stock going to make a turn in,

you know, ahead of that actual turn, but why would you hold on to this? >> it's a fair question, and the i personally think that we're closer to the bottom than we have been in the last 12 to 18 months. we've been a bear on this story for a long period of time and if you look at ibm's history, what they have been able to do is strategically get out of some of the more commoditized pieces of miss and move into the higher value offerings. saw strategic initiatives up 16% this quarter including cloud whose margin profile starts to improve and they are making the right moves and with the revenue base the size that it is, those just take a reasonable period of time so if you're looking at stock today, probably saying we're closer to the bottom. >> should i be a buy something, like a fire eye, something with a higher growth profile? will that help move the needles? >> to muddy the waters with other large acquisitions is not the right move. >> okay. >> they need to focus on the

internal stuff and focus on the central artery jim initiatives and as the tanker starts to move we're closer to the bottom than ever before. >> by the way, we're seeing fire eye move in the after hour session. there's some talk and we mentioned this because the stock is moving on this, that it could be a target for a company like ibm and also ahead of the state of the union address where it's expected president obama will talk up cyber security benefits and it is this stock moving. >> it's droppings earnings 20% and i think it should get cheaper. no prospect. waiting on the mainframe business to be an exciting reality for these guys? i mean, that's yesterday's news. >> what do you any? >> hardware side absolutely dead. that's where they are getting killed and revenues continue to dress. they are a serial acquirer. i wouldn't be surprise federal they made some acquisitions.

i know joe said no. >> they are expected to have 600 million in sales. doesn't do anything for them. they can cross-sale the heck out of it. >> 8 times 16 is 128. i'm not sure it's getting there. >> wow. >> that's what you've got to do. >> you're the man. >> a stock they thought would make 20. >> in 2015. >> pops and drops, big movers, drop for s.a.p., down 5%, dan? >> slow moving, these guys are moving in the cloud. their install-based business is not catching up right here so the stock was down 5%, down 25% from the 52-week highs. remember, this is a german equity, in the dax, one that i would expect that ecb goes full qe, and there's a liblgity component. one you can probably buy at 52-week lows. >> big pop for smith & wesson. up 16%. guy? >> coming off a difficult third quarter in december. got it mire for the next quarter

and surprised a lot of people. i think you will continue to surprise people on the upside. i think it continues to go high. >> drop for jc penney? >> they talk about bringing back the catalog, i don't know that that necessarily is the savior. that will fill an area that they wouldn't to grow in more which is the online world but a stock that came off a huge pop. dropping them back down and down towards $7, maybe each a little less. >> johnson & johnson, a move up 3%. tim? >> interesting company, had them on last week. alex gorski, a fantastic play in the phrma space. the 2015 guidance says they are not doing it now even though they beat in 2015 fourth-quarter numbers, pretty good. >> all right. coming up. this is going to be big. our first ever tag team edition street fight. tim seymour, peter najarian take the bull side of the airlines trade versus the bears, dan nathan and guy adami. the action and the whistle starts right after the break.

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goes something like this, tag team.

party on, let's hear some noise. >> our first ever tag team street fight. airlines headed higher or is low oil not enough to keep the stocks going? a two versus two special. tim seymour and peter najarian are our bulls and dan nathan and guy adami are the bears. let's get ready and take our places in the arena. all getting up here. >> all getting up. >> logon to twitter right now to vote for who you think is winning the fight. use #bulls for tim and pete and #bears for dan and guy. putting three minute on the clock for this epic tag team edition of the street fight so let's kick it off with the bulls. pete, you're up. >> it's fairly simple. richard anderson on delta call talked about significant opportunity. 2015, significant opportunity. how about the fact that they have put to rest so much of their debt. they bought back $10 billion in the last five years, reducing it down to 7.3 billion, and the cash flows, over $3 billion. this is an airline that's moving higher. i think all the airlines when you look at it right now,

there's the big three, the big three are killing it and they have learned to have discipline. that's why the airlines are going higher. >> yeah. you know, i would say that they really haven't learned discipline. they have been very fortunate given the consolidation. think about the six majors and now three and basically a monopoly here, an industry bankrupt five years ago. you talk about delta here. that's one to own and i want to talk about united and american that have much higher debt-to-equity ratios than delta does and you don't want to be anywhere near these guys. lower oil at some point can get rid of some of the fuel charges, and it's not a layup that they will hedge their trades. it's not always a layup to hedge on trades to one. most important costs you've got. as good as it has got. these two have been right for a long time. >> let me get in here. >> with these stocks up. >> tag out. tim is n.talked about discipline. one of the things i said probably two months agosy was worried about airlines in a lower oil priced environment because there's mo capacity

constraints, no discipline. it becomes-quinn a darwin and i here. look what delta reported on the fourth quarter, 11% to 13% operating margins next year, better than we expected. think the multiples get 300, 400, 500 times. >> pick me. >> come on. >> is this a diatriatribdiatrib. haven't even talked about fuel. >> whistle. go, guy. >> they have been on fire. listen, overlay an oil chart with airline chart. oil goes down, commensurate move in the airline. since september it's been spot on. pete mentioned potential for bottoming here in oil. well, if that happens i think you'll see a selloff in the airlines. i'm not apocalyptic here in the airlines. love them, buddy. >> go, guy. >> capacity at the wrong times for decades! >> they did, but this is a different decade. the old decade, new ceos in charge. when you look at what delta is doing, in front of everybody else. united is next and then american. synergies kick in and that's

when the debt starts to come back, big boy. >> whoa. >> the american consumer is here, but let me tell you one thing and delta is actually in a better position than united which actually has much greater exposure to international routes. don't forget, guys, that the dollar keeps going higher and higher. at some point a strong dollar may offset the benefits of lower oil for some of the names like united that rely on those international routes. >> how can we not be talking about jet fuel prices. >> absolutely -- this is $14.5 billion for the entire industry, even if they give half it back talking about earnings appreciation, 30, 40 bits across the board. how are we not talking about fuel at this point. >> whoa! >> time's up. that was nice. nice job, guys. that does it for our first ever tag team edition of the street fight so please go on and vote #bulls for tim and pete and #bears. we'll reveal the results at end of the hours. tweet us. that's how we'll get the

results. still ahead, microsoft will take center stage at a windows event what. traders are expecting in terms of the move for the stock. that's next. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor.

got a news alert. let's get to jane wells for the details. jane? >> hey, melissa, for those who like to, wynn resorts said they are extended steve wynn's contract to october 2022. he would be 80 years old at that time. also, they are cutting his base pay from 4 million a year to 2.5 million a year, boy national, will hurt,able finally the new aircraft time sharing agreement will provide he'll reimburse the company for certain expenses for any of his personal use of the company aircraft. wynn, by the way, took delivery of the very first g-650 off the line. however, the company is providing him with a $250,000 credit per calendar year to offset his reimbursement obligations. by the way, shares down. i think you saw it on the gdp news. >> thanks, jane wells. the smallest violin in the world is playing for steve wynn right

now. what's the trade on the casinos? >> stay put. wait to see how macaw turns around. get the pure macaw play, not wynn. >> love that play. jane wells is the answer. >> i hope jane is listening. no, no, no. when it comes for casinos, would you opt for a u.s.-centric casino play? >> the macaw name has gotten beaten up. wynn held 140 a number of times, trade wynn on the long side against 140 which is basically twar right now. >> microsoft one of the hottest trades in 2014 and a big trader made a run today that it could take a breather. dan is over at the big board with the action. dan? >> won't be anything financial this week. options market implying a 2% move between now and the weekend. that's more reflective of the volatility environment that we're in. it ran three times average daily and one really large trade that

caught my eye. that is a year from now, trader sold 15,000 of the jan 16 calls at 1.50 and likely did that against a long stock. 420,000 shares at 46.35. this was likely an override of 1.5 million shares. let me just tell you what's going on here. the trader is long 1.5 million shares of stock. sold those 15,000 january 16 52.5 calls. that would actually be a break-even, above the one-year high and also looking out to 14 years. one of the main points about selling a call against your long stock is to add yield. microsoft to stock, yields 2.7% from its dividend and that yield would be an average 3%. this trader is obviously looking to take advantage of heightened implied volatility, the price of options. this trade, the break even is up 17%, so, yes, it is taking a breather, but you're actually getting paid to own the stock, and you have 96% buffer between

the dividend and the call sale to the downside. >> after such a big run, pete, do you still stick with microsoft? >> i do. but i like what the trader is doing. why not try to enhance your yield. you'll get the dividend yield as dan was talking about. now you suddenly sell the calls out a year. that's a long time, and they aren't going to go down very rapidly, but as they go down, that's money in your pocket. stock gets up there and that return is great. >> for more "options action" check out our live show at 5:30 p.m. eastern time. coming up on "mad money," cramer taking on one of the most anticipated ipos of the year when he dives into cloud play fox. new big winners and losers and we'll grade the president's new tax plan, all next ahead on "mad money." but we've got the results of our epic tag team street fight. we'll reveal them after this break. plus, of course, your first look tomorrow. we'll be right back. >> the president has a new tax plan and the feds will raise rates. are you missing the bigger

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tdd# 1-800-345-2550 ♪ ♪ whoop, there it is >> tag team. >> all right. it is time for the results. our first ever winners of the tag team street fight are the

bulls. peter najarian and tim seymour take home the trophy tonight. >> beautiful. >> how do you feel, losers? >> pardon me. >> wow. >> they lost the street fight. they are losers. >> i think you've got to show a little more -- >> apparently. >> emotion there. >> you guys weren't in the game. >> mean gene was awesome. >> brought your "a" game. >> timmy, around the horn? >> alaskan airline, delta move to seattle is a a big deal for them. you still have takeover and still have a multiple that's probably the cheapest in the space. alk, stay there. >> pete? >> sticking with the airlines, so i might have somebody fighting against us, but united airlines, big day coming. big, big day. going higher. >> dan nathan. >> narrator: >> yeah, they report on thursday, the stock opens up like delta did, sell it. i'll be looking to short it. >> late to the party, buddy. >> sour grapes. >> talked about all the youths. >> i'll give you a ute, uteck.

breaks 120, off to the racings and into earnings. >> i'm melissa lee. meantime, "mad money" with jim cramer starts right now. m mad money starts now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always more work somewhere and i promise to help you find it. mad money starts now. >> hey, i'm cramer. welcome to mad money. welcome to cramerica. other people want to make friends, i'm trying to make money. my job to not just to train you but educate and enlighten you. tweet me @jimcramer. negative newspapers control the flow in the