it's we're going gangbusters here. they're going to be it's a matter of how much and how the trading line looked and what the environment seems to be for deals. >> it all comes down to the guidance from jamie tomorrow. see you tomorrow. thank you for stopping by. >> that's it for "closing bell." "fast money" starts right now. live from the nasdaq markets. "fast money" starts right now. the 10 is year anniversary week rolls on. tonight on fast apple shares taken a dive as advisor to donald trump says it's run is over. and what she thinks apple needs to do to make a comeback. could the at&t/warner deal be in trouble because of trump?

first, we start off with the banks. despite the major reversal the financial still dragging. checkout the regional banks tracked by the kre now negative for 2017 down more than 1.5% today. j.p. morgan, wells fargo, bank of america, set to report earnings tomorrow morning. will bank earnings derail this rally, pete? you're an owner, are you worried? >> no. what we've seen is this consolidation going on for over a month. if you look at the range, banks you're looking at basically call 23 to the upper 23 it, 23 it 80. and that's where we've been and where did we finish today. by the time everything was said and done, we finished at 2340. so it's sitting right where we want it to be right now those of us that are on the bullish side. when i go to last quarter and i see the numbers that were produced, all these are going to be reporting tomorrow, we're

going to find out but my hunch is that the banks are doing extremely well still. i think the environment was great for trading. because of that and the forecast going forward, i think we're going to see a lot of bullish activity. >> i don't think it's priced in yet and the reason i say that is, even though the stocks have moved to the upside, banks aren't priced off of pe, banks are priced after that book value. >> they're also being priced off rotation. i don't think that could have been happened in a month. the rise you're talking about to me you could argue that. when you talk about rotation because totally different thing when you look at where it's come from eight years ago, basically eight years of an obama presidency, you can't have made that up or switched gears enough for me in the last month so i do think they have room to rise. >> why into earnings? i got to tell you -- >> let me just give me three

more seconds, you could see a little bit of pullback but it's not going to be great and i don't think you need a lot of time -- >> i think people want to see a pullback. i would agree with position ing these banks starting to have a bar not so easy to get over. i think we need to hear about core loan growth. mortgage banking is going to have been down in this quarter. i think there's a great opportunity to buy banks -- >> because of the rise in interest rates? >> yes. there's no question that people pulled back. ultimately i think it pulls people into the market. look at the move on the dollar and i think you also -- i think this goes back to comments that trump made and even whether it was even the attack on the bio pharma or other things related to the border tax. the ability to get implementation is something i'm not sure we're going to get.

the banks were front loaded for a lot of this and banks were going to be a core part of that. right now people are questioning look at the dollar, look at rates and i don't need to own banks tomorrow. >> we just had donald trump have his first press conference since being -- in the presser, corporate tax reform was not mentioned, deregulation was not mentioned and this is part of what the banks are rallying on. >> about the rotation, absolutely. we've been talking about book value being important. earnings absolutely matter. without question. but i think even if earnings come out tepid to weak this quarter, people will overlook that because they'll say i don't want to miss the chance that this gets done in the second half by sitting on the sideline and waiting for these things to continue to rise. in terms of price to book, we've talked about it. 2007 so banks trade goldman sachs for example, it's trading

1.35 times. not to suggest it's going back to those levels but i think in this environment you could see a trade back to 1.75 which current evaluations you're looking at $300 stock. >> you're also looking at when you brought up the press conference, you're looking at a president-elect. he's not even president yet. those details that we all wanted him to have, i think it's a little unfair to ask for those details when he hasn't -- he hasn't even been inaugurated yet. the market saw that -- >> the markets don't need to be fair. >> the market was fair. if they agreed with you they would have sold them off harder and bought them back. they're being a little bit strange on trying to think that they're going to get a corporate tax reform, they're going to gate obamacare repeal and replace all in one press conference from a president-elect. >> made a very simple statement

about who's really been in charge over the last eight years in terms of banks. just removing some of that. i'm not saying that happens tomorrow. banks should get the benefit. no question you have a better regulatory environment for banks over the next four years. it means what guy is saying and what steve is saying, it's just a question of how you want to treat the banks right now? and not even tomorrow do i want to own these banks, it's a pullback you won't get. >> i'm very comfortable owning the banks into these earnings. if we get a -- >> you didn't own -- if you didn't own any banks today, would you buy them tomorrow -- no, you wouldn't. if you're in, you're in. if you're not in, you wait. >> you have to give it a couple days to breathe. you still risk/reward should wait. >> about a month ago goldman sachs had this conference, all the banks ceo really bullish, what is happened in the past

month. s&p 500 basically flat so the difference in tenure in the market is different from a month ago. >> howard lud in this case sat here yesterday could you have been a bigger bull on wall street right now says the bank ceos and he's talking about fixed income trading. let's go back. i keep saying this but until we get this quarter which starts tomorrow, j.p. morgan they're revenue was up 45% year over year. i think this quarter was just as good if not a better quarter for them than it was in the third quarter and that's what i'm banking on right now. >> banking on. >> i just want to have fun. >> rich, what are you looking at? >> we're a buyer of the financials here. let me show you why. this is where it all starts, this is a very long-term chart of the 10 year yield. this week some titanss have weighed. look at this. this is the reagan reflags tri

in the earlier '80s. the donald deflationary around 135 i think this takes up to it 150th month. look how it's defined the down trend in yield. we test that neckline at a minimum around 309 that's my price. look at this. you talked about the dynamic between yields coming off, the curb flattening. this is goldman sachs, we could have put the xlf in there. the stock held firm even as the curve has flattened and yields have come in. investors are looking for ways in on the bank's not ways out. word of caution. look at this long-term chart. we've seen a downgrade on the street away from my own interresistance. i think we consolidate, break out to the upside. what are you going to do if you

don't own the stock, morgan stanley. that's from the -- the stock is the big long. look at this long-term chart. bullish ascending triangle. it's going to get you into the mid-50s. let's move away from the brokers. you have to own this stock. look at this breakout. anti-wall street, the passive over active, the etf over the p.m. you break out from this multi-year trading range. let's finish with blackstone. always bet on black. you have to like what private equity guys are doing here. apollo, kkr, earlier last year they were trading along with energy. that broke down as the group moved sideways. those are four ways to play this trade. you want to get in to the banks, not out of the banks. >> we invite him back. >> what? are you kidding me? >> come on over, rich. >> nick will bring the chair in.

>> lthank you for having me. >> bet on black. to me consolidate here and break higher is that what you're waiting for. >> i think the stock and the chart are in a very strong technical position. we just have to be cautious or cognizant of that very well defined resistance of that all time high in 2007. so i think there's room for those stocks to catch up and also room for goldman to break out above that critical inflection point and move higher. this group is in a very strong position and the action in the face of the decline in yields from 265 to 235, that tells you people are buying these stocks. >> rich, how do you feel about the bank stocks in a pullback of say, you know, 3 to 4%? not a massive pullback but maybe inauguration disappointment. do you feel the same about bank stocks?

>> i think that's the opportunity that you've been looking for clearly. what makes me more constructive about the banks, why i like them is this cross symmetry look at the action across commodity currencies. russia, brazil, the -- gasoline all of this has this inflationary undertone. stocks like glenn core pushing out even as the market pulls back earlier this morning. that's telling you glenn core is a microkozism of reflags. it's all the same trade. crude, taking the part of rates for me it's all one trade. it's all reflagsry. >> when everyone's worried about that 3% range, taking the steam out of equities, when you look at how much banks make off of mortgages and housing starts and you loop in and everyone's worried about buying the builders because of a 3% rate,

approaching that when historically it's 6 1/2, 8%, 7% are you worried about home builders based on that as well? >> you can't paint financials with a broad brush. when you mentioned the home builders, the flip side of the banks, chart broadly speaking i think we're in a bull market. rising tied. it's going to lift 70% of stocks. on a relatively basis you will underperform in those groups. on an absolute basis you could be okay but those are not my favorite play. >> rich, thank you. good to see you. what did we do today? >> i got involved in bio tech today. i did buy something zyop. >> it's a smaller play. something where we seen activity for a long period of time. i think there are opportunities.

there was enough paper in the financials today to add. i didn't but i did see a lot of paper coming in to various financials. >> what did you do? >> weakness in the dollar, really tells me in the short run the dollar is capped and it means that the things that have underperformed, slid some money in the turkey and eem, trades i think as long as the dollar stays range bound you got to catch up on this stuff and you will. >> i would echo the sentiments because the ibb has been holding this 275, 280 level it's not sold off as meaningfully as it would have six to nine months ago so i do think biotech i think it's a buy here. >> people are getting wrongfully spooked by home buildersing about interest rates. i've been a buyer. i've added to my home builders lately. >> one of the biggest media mergers between time warner and at&t could be in jeopardy under

president-elect for one simple reason, cnn. plus legendary peter teal says the days of apple are quote/unquote, over. carra swisher is here to respond to the controversial call. much more on "fast money"'s 10th anniversary week. hegesu at ykn i.inerers iel t.anr dith.....p that ul

lse oo u did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps.

and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. news alert on pandora. >> that's right. pandora shares spiking up in after-hours trading now. the company now saying it expects to exceed it's q 4 guidance, exceeding the ranges it previously gave citing strong advertising performance. it has surpassed 4.3 million in paid subscription owners. it plans to reduce its u.s. employee base by approximately 7% by the end of the first quarter of this year. also saying it's going to be leveraging platform and real

life lench. ceo saying workforce reductions are always a difficult decision but the and monetization. >> thank you. it's worth noting that there's a 27% shore interest in pan be dora right now. >> i still think the stock can go higher. this is the number one app in google play over spotify. they're listeners are up. this is a stock that's definitely not going out of business. balance sheet okay. >> i love the fact they're short and, by the way, huge option activity over the last month in this name. part of it is some people think it's an m&a type stock. when you get positive news like this and you start seeing the stock move to the upside, there's an extra giddy up. >> now let's get to our top

trades here. delta trades talking to cnbc phil lebeau earlier today. >> there was no question post the election that we saw an improvement in the consumer confidence that we've seen in our travel and you see it in the marketplace. you see it i think in some optimism with respect to starting to get things done in washington and we saw it in our result. >> shares of the stock are are up 15% since the election. >> when you look at the balance sheet, you look at what's going on in the airline row, the cash flows are incredible as well. those will start going away when we get to 2018. i like delta. i'm in a couple other different airlines right now. the run unless they can somehow breakout of the valuation levels, let's just call it a ten across the board, unless that gets restructured and people start saying they should trade

at a 12 or 14, i think these are getting close to fully valued and better opportunities in the airline world than the big 3. >> the question is it probably deserves to but if you're looking for relative value in the space, delta's the one you stay in. passenger revenue which is what we like to do it here. we like to talk about these things. it's going to go positive in march. the revenue trends are very good. higher oil. pricing power for these guys. i'd like to see a pull back to buy more. >> delta was not a performer last year saying that it should outperform this year. i like going with the outperformer because there's a reason why it was outperformer. i think that will be the catch up trade. they want to go with what's working. what worked last year sometimes works the year after. >> you got a lot of spirit, by the way. >> that's true. >> for ten years you've had a lot of spirit.

>> you brought spirit to this desk. >> what do people do is raise the roof? >> that's really cool. >> keep going. >> i just ran out of spirit. >> i will say they just came out with their december numbers, traffic up 12.5%. if you look at the stock since the summer it's been a monster. stalled here at 55 bucks but you want to be short to stock on earnings february 7th, i don't know. >> fiat chrysler tanking today but the ceo says they've got it all wrong. we'll hear from him later this hour. i'm melissa lee. you're watching "fast money." in the meantime here's what else is coming up. >> you are fake news. >> carson block will way in. >> legendary peter teal has a simple message for apple investors, it's over. >> but kara swisher says there's

something he might be overlooking. she'll be here to explain when "fast money" returns. l killosts irhe tokillosts urwha e od

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welcome back to "fast money." we are live at nasdaq in new york city times square. you're listening to one of my all time favorites, jams in the prompter, songs. original "fast money" theme song. very nice to hear. it was a stocks sold off but recovered most of those losses by the afternoon. the banks leading the way lower. here's what's cape maying up in the second half of the show.

one of the biggest mergers could be in jeopardy. noted short seller carson block is targeting one area of the market that's overcrowded. could send ripples? the tek giant announcing it will be creating it's own video streaming content, peter teal told the "the new york times" this morning that the age of apple is quote/unquote, over. deed dra. >> teal was asked point-blank confirm or deny the age of apple is over. he responded confirm and he added. we know what a smart phone looks like and does. it's not the fault of tim cook but it's not an area where there will be any more innovation. teal's take coming off a rough year for apple.

iphones grew at the slowest pace since it was first introduced in 2007. apple watch sales have slumped. apple have come under criticism for -- that has led others not just teal to question if the company has lost its mojo. since hitting it's all time high back in april of 2015, apple has dipped into bear market territory twice and remains more than 10% off that mark. apple is reportedly planning a push into original content. the company is looking at just a handful of shows, though. not looking to spend the hundreds of millions or billions needed to compete with next flichl or amazon. show some restraint. apple was not the first with the ipod or iphone but it was incredibly successful. apple has hinted at going full throttle with original content as its reportedly pondered. it does have the war chest of

$230 billion in cash to make a run at it if cook decides to. so even if teal is right and there is no more innovation to be found, the apple age in media may just be beginning. one more thing, a very happy 10th birthday. we've been enjoying the coverage and the celebrations very much this week. >> thanks. very sweet. let's bring in kara swisher executive editor she joins us on the phone. always great to speak with you. i will pose to you the same question, the age of apple is over, confirm or deny? >> deny. i'm sorry peter teal knows everything i forgot. it's not over. they're an enormous company and he just spouts off stuff and he's a guy that said the internet was not over ten years

ago and he was correct about that. i think the question is can they continue to innovate and keep going and it reminds me sometimes of the rolling stones. they've got all these amazing hits can they keep going or just play on, kind of thing? but, you know, it just depends on the next product. if the next phone is fantastic and they find a way to innovate, if they don't, i think there's some issues around that if they can't reinvigorate the iphone market. we'll have to wait till the fall. >> we love to have this conversation as to whether or not apple is innovating or not and the evolutionary versus revolutionary of the iphone that always comes into the conversation. can they be considered still innovative if it's just evolutionary still? the form factor changes, the battery life gets better. do those things qualify as innovation? >> no. there is a point what would you do with the phone, not just the iphone but all mobile phones.

it does have a shape and format but nobody could have thought of the iphone until the iphone. it's also ten years ago today, happy anniversary. it changed everything, the iechbl. so the question is just because people can't think of a new idea, doesn't mean there's not a new idea. i don't know. these are people who have come up with some of the astonishing products and they've had a lot of duds, by the way. the watch is sort of ehh. i'm not thrilled with the ear buds. i don't think everybody is. it doesn't mean they can't do something else. we'll have to wait and see. the phone is the key -- new phone will be a lot of pressure on them. >> kara, steve grasso. forget about innovation now. if macbook sales are down and you're starting to see competition, when people got the original -- they were afraid to sway away from iphone because of

itunes. you're frayed because you owned a macbook now no one even backs up there phones any more it's a stand alone feature, doesn't that make money more fierce? i mean the ecosystem. >> everything's in the cloud. what would be really interesting if you could have phones you could you just throw away. that could be a really interesting thing. i don't know if you watch harry potter they have those newspapers that come alive and then they git rid of them, they're not quite as expensive, they're more disposable, that would be interesting and who knows if apple can play in that market. definitely the cloud is where everything is out and everything is up in the cloud and everybody has to react to that. maybe that's why they're doing the streaming service to differentiate themselves.

so where they need to compete now is full of competitors and that's definitely an issue for apple and they don't have particular skills in video necessarily at all, so that's would be my worry about stuff like that. >> great to speak with you, thanks for phoning in. >> great, thanks a lot. >> apple can just be a hardware call and it can be a very good call and i think the new form factor is very important. i think also help the valuation. do you want to own apple at ten times? why not. i don't care about the innovation. >> so just on the basis of the phone -- >> i'll take -- >> if you don't care about innovation then the hardware gets sold off. there's so many other outlets for competition right now -- >> the pent up demand for the phone and i pulled back on it, i'm sorry. the pent up demand on this thing

to me is still something that's going to probably drive 11 to 15% iphone growth. that to me is worth owning this company. >> it's all about loyalty. we know how sticky it is when you're involved in apple. that's going to probably continue to grow, right? you've got services and i know i bring it up every time when we talk about apple. when you got services growing at the rate that they're growing and that's a higher margin business than any other part of what they do, that is something that i think really needs to be looked at -- >> it wasn't a services business, it wasn't a hardware company -- >> i don't agree it was just a hardware company. >> but i can own it as such. >> i've owned it for over a decade. >> can you accept apple as an investment if you believe it's just a hardware company? >> no. >> can i ask a question? >> i would not own it for that reason. >> you used to use that term about the ecosystem. if that ecosystem is gone, isn't that a huge --

>> the ecosystem is there, those that are there are sticky and i think they stay with apple and that whole area as they convert over into the services side which you continue to see this growth. 24% year over year at the very end of this 2016 run. that's incredible. >> that's the reason why they have the one up. >> i don't know that i would give credit for that's why apple's was winning. samsung phones were more likely going to stick with that operating system than move to apple. >> what happened here? we flopped. >> the first seat i sat in was where tim was sitting and then he flipped and i will went to the hook. >> i sat there where steve is january, february, march and then eventually moved over here and sat here for about 2007. >> it's about being able to play a lot of different positions.

that's what we do here. >> you're a tight end, safety. >> i know we got to go. she said something about disposable phones. isn't there a nefarious portion of the populations burners. >> breaking bad. >> all the criminals on tv have burner phones. >> um-hum. >> just saying. >> you got to get up on that. >> still ahead carson block is taking aim at one area of the market that he says is getting overcrowded, plus is president-elect trump about to torpedo the time warner/at&t deal. much more "fast money" right after this.

welcome back to "fast money." president-elect donald trump taking another shot at cnn today. julia boorstin's in l.a. with more on that. >> trump continue to go slam cnn on twitter tweeting today cnn is in a total meltdown with their fake news because their ratings are tanking since election and their credibility will soon be gone. the cnn the network's ratings are actually up here today

ranking as the number two it in total viewers. this is part of an ongoing bat wille. trump refusing to answer a question from cnn reporter at his news conference. >> sir. >> quiet, quiet. she's asking a question. >> president-elect can you give. >> don't be rude. can you give us a question? >> don't be rude. i'm not going to give you a question. you are fake news. >> today trump met with the ceo of at&t which is in the process of buying cnn's parent company time warner. a deal which trump has publicly opposed. following the meeting at&t saying, mr. stevenson that's at&t had a very good meeting with president-elect trump earlier today covering a wide range of topics. at&t's proposed merger was not a topic of discussion. the conversation focused on how at&t can work with the trump administration to increase investment in the u.s.,

stimulate job creation in america and make american companies more competitively globally. it's the department of justice, not trump, who will make the call on the at&t time warner merger and just because trump does not like the coverage he's getting on cnn doesn't mean the deal won't go through. >> thank you very much. what do we think of at&t and or time warner if the deal does not go through? >> if the deal doesn't go it through right now the market is pricing in the deal not going through. i think up until now they're listening to the rhetoric. i do think the deal will actually go through because it's the people that are in place at the doj and at the fcc that are going to be more flexible when it comes to these deals. so whether or not president-elect trump doesn't like it or his son-in-law jared kushner those are personal opinions. i think ultimately this deal will get done. >> to me, at&t if you look at the stock it tanked on that deal. there was also some view that it

was maybe the actual peak of buying yield plays but really if you think about this stock there is some question as to how much should they be paying for something that could be broken up and maybe more. if they don't get to that point and to me at&t is not the playtime warner is the play. and you can own it either way. >> he is shorting spreads of some takeovers. could the time warner at&t deal be one of them. let's find out in a cnbc exclusive. carson, it's always a pleasure to have you. thanks for joining us. >> thank you. >> why are you taking a look at this area? and is at&t/time warner one of the ones you're looking at specifically? >> sure. we got involved with shorting a spread in st. jude in abbott. you're downside if you're short to spread is pretty capped.

there's so many deals that are being done right now when it feels like we're in the late innings of the m&a cycle. a lot of the deals that should have been done would have been done a few years ago. so for us if we can find a single issue that's really profound that should effect how a buyer is looking at a target. that's considering shorting. we have no edge there with time warner and at&t. >> so basically you're betting in the case of abbott and st. jude that the deal would not go through, the deal did go through at the beginning of this year, it was completed essentially so did you make money off that particularly trade and are there other areas now that we have a new administration coming in that you think could be worth taking a look at? >> sure. well, for legal reasons because we manage a hedge fund and we're

also being sued by st. jude i can't talk about our p&l on that trade but the thing that's interesting there is right after the deal closed, within days, we received vin did i indication on our thesis in that the fda and dhs put out announcements stating that the products, the cardiac device ecosystem does have serious cybersecurity vulnerabilities. the fact that it came out right after the deal closed is pretty interesting, but, yeah, it shows from a if anything not objective toward us source that we were correct. >> right. in terms of that it problem because this was found in terms of the hackability of these devices is the trade there over do you think or could abbott still face some blowback because there's this issue?

>> well, it's very interesting because what's been announced is a series of patches for the home monitoring units, but this does not fix what in our opinions is the most serious vulnerabilities and those vulnerabilities are with the implantable devices themselves. that it requires a firm waer fix and that's where we think it's probably a couple of years away to fix that firm ware so the question is now that fda and dhs have agreed that there are serious cybersecurity vulnerabilities, why is st. jude now owned by abbott being allowed to continue selling vulnerable implants before it can actually fix them? so in terms of what you might do with that with abbott stock, look, that's about half of st. jude's revenue. if st. jude were ordered to it cease selling these implants for a year or two years or three years, that would obviously have

a material impact on abbott stock so there is this option that's built in to abbott stock that's basically a put on st. jude. now is it smart to short abbott right now given the other aspects of abbott's business, we don't know enough about the rest of abbott's business to have an opinion on that yet but that's something we are looking at and we're mulling over. >> let's talk about your first short on japan. is that a specific stock? >> yes. that company is called nydac and market cap is $25 billion. >> why did you put the strait on? >> this is a company that's considered to be the gold standard of companies in japan. it's considered to be very shareholder friendly, very open. it's considered to be a great company when you scratch the surface it is, in fact, not a great company. over the past five years there's

been really zero annual growth on a organic growth on a compound basis and the company's playing games using its declining hdd motor business to subsidyize the flasher parts of the business and make it look like they're growing faster and performing better than they have been. it's not the worst company in the world but given where it trades the implied valuation of these other businesses that again are being flattered through some accounting gimmicks put them on par with facebook and that basically -- and this is a company that manufacturers widgets, widgets for automobiles or air-conditioners so that's ridiculous and we felt by bringing to light the significance government concerns as well as accounting concerns that we could bring that more in line with reality and to us reality is down well more than 50% from the current stock price. >> wow. 50%.

we're going to leave it there. thanks so much for joining us. >> thank you. it's interesting betting against a spread basically saying the deal won't go through. >> people make careers off things like that. karen talks about it all the time. i don't know anything about nydec. real quick about time warner, people bringing it up and i think we said it before, antitrust goes a long way but not liking a company is not a reason for a deal not to go through. you get rid of cnn, spin it off, at&t time warner goes through. could happen. >> that would be absurd, though and scary. >> i wouldn't put it past it happening number one and time warner stands on its own two feet by itself without the deal. so to steve's point earlier, you can own time warner regardless of what happens. >> are you familiar with nydec? >> no.

japanese companies and what's changing in japan there's been a step forward in the transparency. a lot of these company's have made mega management companies. long-term earnings growth great outlook but it's -- >> he brings up those accounting issues which is always concerning. >> the ceo says it's simply not true. we'll bring you those comments. you're watching "fast money." vereoft. iesi ith* instatd ve

p dos. did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster

than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back to "fast money." fiat shares plunging after epa accusations that the auto maker used deceptive software to cheat on emissions test. here's what he said. >> i think we are been unnecessarily maligned with a desire or a wish or an intent on our part to try and defraud anybody. we haven't. the issue could have been settled and i think should have been settled in my view in a more efficient way in a more business-like manner as opposed

to elevating this to suggestions that we're trying to defraud anybody. >> many comparing accommodations to the recent volkswagen case so what does this mean for fiat, what does this mean for the automakers? >> let's be clear, they are in violation but not necessarily a defeat device so we don't know. and this is a massive move in market cap and again you have to prove intent to really, truly defraud. and i think that's a major allegation so right now, does not seem to be synonymous with the vw situation which was systematic and went on for a long time and i'm not saying there couldn't be a big penalty here but the market cap overreaction today was just that. >> he had never seen in all these years sergio marchionne to be so approximationat about the epa having this wrong. so could there be an opportunity in this with this steep decline? >> if there's an opportunity you

don't want to do it with stock. just because we don't know the answer. the answer the penalty could be stiffer than we think, maybe it's not. if not and we get any kind of bounce you'd rather be in the options for that reaction. >> more on what went on -- nice hat there. >> tenth anniversary hat. more than 18 times the average daily option volume in chrysler today. the most active options were the january 10 put. they actually started buying them when they were only $0.15. now, to the point that the guys were making, we're talking about 100,000 cars here. 500,000 cars in the u.s. was the vw situation, 11 million overall, $3.4 billion fine. but take a look where the stock was trading last october. this stock is moving around a lot any way. the way i look at it if it you're going to make a bullish bet try to catch a bounce here.

i go longer than january, though. probably out till mid-summer. >> thanks for that. check out the full show 5:30 eastern time tomorrow. still ahead, guy says the trump's are aligning for one of his most hated stocks and he's looking to buy. yo lkpt tranly doevery.wewu n ragies.llen h l thredina

10 years, that's a long time. good for them the folks at "fast money." >> we looked it up and the tenth year anniversary gift to give these days, sort of the modern gift is diamonds. >> that's not happening. we love you guys, but more like an agope love. you know what i mean? >> it turns out that's aluminum. >> so nothing but the best for our friends at "fast money." happy anniversary! >> cheers. >> they're so generous. thank you bill and kelly. >> time for the final trade. >> there was a downgrade today in disney.

>> kb homes don't be afraid of rising interest rates. >> pandora is worth the shot. >> time warner say it pete? >> giddy up. thanks for my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market 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 just trying to make you some money. my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc or tweet me @jimcramer. if you want to know what this market's all about, look no further than the stock of amazon. todath