two or one or whatever if she's right on her view and they see this tax plan falling into place, will they be much more aggressive than everybody thinks right now >> yes even if you think the traditional model works, you're starting to see leading indicators of inflation happen >> the cpi would be the most interesting thing tomorrow >> yes >> mike, thank you we'll see you tomorrow that does it for "closing bell." "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," the crypto trade is on fire or, as the kids say, lit it's not just bitcoin, litecoin, and ethereum going parabolic we have every angle covered. it is bitcoin week here on "fast money. the biggest crypto ballers will join us. the giggest one, mike novogratz,

is here to tell us when his fund will launch and at what price. if you have crypto fever, you don't have to look away from the screen we have our bitcoin watch fired up throughout this hour. first we start with the dow on fire both the dow and the s&p 500 closing at a record high, the dow 150 points at the high both indices posting their fourth day of gains, with the help of tax cuts on the horizon. it looks like a deal on the bill is close let's get to ylan mui in d.c >> reporter: melissa, republicans are closing in on the final version of the tax bill two sources tell me the corporate rate will land at 21%. it's unclear whether that will kick in right away or not until 2019 but that is slightly higher than the 20% rate that was in previous versions of the bill. the top individual rate, that would fall to 37%. that's lower than the senate's original proposal for a 38.5%

top rate the detection fduction for morte interest, would only apply to new loans. existing mortgages would still be grandfathered in. the deduction for passthrough businesses, that would now be at 20%. so not quite as generous as republicans had hoped for. a white house official has confirmed all of these details, and they said that the president -- that these represent, quote, the current state of play, with the caveat that nothing is final until everything is fine this does appear to be the tentative deal that senator john cornyn, a member of gop leadership, had referenced earlier today. markets got spooked when senator rand paul tweeted that he opposes any measure that adds to the nation's $20 trillion debt burden paul later clarified and said he was talking about negotiations to keep the government open, not the tax bill republican members of tax bill's conference committee are slated to have lunch with president

trump at the white house tomorrow before holding a public meeting later in the afternoon, melissa. >> thank you very much, ylan mui in washington for us it does look like tax cuts are coming down the pike what do you buy, which stocks stand to benefit the most? guy adami. >> we've been saying for quite some time, i think they're going to ram something through and do it by christmas. president trump says he wants to give the u.s. citizens a big fat christmas present in the form of this tax bill. i think it's going to get through one way or another whether it's 20%, 21%, i'm not really sure that matters to the market what do you stay with? let me give you two quick indications. the vix was up today, that's interesting, maybe on the back of the fed meeting tomorrow, maybe people are starting to get ahead of themselves. >> why are you such a buzzkill about the vix? >> because the market has been volatile and it's going down if you're not pointing it out when it's up, you're doing a disservice the russell closed lower today, something to bring up.

on the other side, banks continue to trade well, pete can discuss that goldman sachs, having failed at 255, down to 248, now that becomes a buy and a breakout deep industrial names we've talked about, honeywell, ropers, and the banks. >> 1% move in the banks on today's session, is that ahead of the fed meeting or tax? >> i would put that on the fed meeting, not as much about tax if you're talking about tax, i would look for u.s. central comments carmax pays 37%. that's going to be a big boost to some of these, potentially. but i don't think you deviate from the plan. and the plan is what's been working and what are the fundamentals we're strong in technology, in my opinion, very strong in financials also. i think you can stick with those names. if you're targeting who is going to benefit in the tax, i think those two names i threw out the there. >> finally analysts on the street are coming around to the

notion that there could be tax we have two upgrades today that specifically mention tax as one of the drivers behind the upgrades nomura on verizon as well as ubs on conagra, both saying the tax rate will be beneficial. >> we fought about this for a while. are these priced in. if the analysts are going to come out and start upgrading their models, then that's actually going to drive these stocks higher. i do think you can probably buy those. i also agree with pete and guy on goldman sachs i was wrong last week, i said to sell it at 255, thinking we would get a double top absolutely wrong >> you guys are right, guy, everyone wasn't calling for a tax reform, i think you were, good for you i think a lot of people who felt this could get done with the ones that sit on the right side of the ledger. the other people that will be upgrading this tax reform is the fed. i don't think that banks rally today because of the fed i think banks rally because people recognize that these guys still have enormous amount of

valuation. >> that's going to take forever. >> but did you need the fed to meet today to know they're going to go tomorrow the question, this gets back to my points. >> it's been transparent, that they're going tomorrow >> why do you need to rally the banks when the fed meets when we've known all along? >> you get these tax cuts and stimulate the economy, maybe you'll go a little faster than the market price income two days ago. >> if anyone could withstand what could be an overly aggressive fed, we've got ukppi at five-year highs, small business sentiment which we haven't seen since 1986. we're getting to a place where policy is following through on expectations that means the fed is behind the curve. right now the market is pricing in 2 1/2 fed hikes in 2018, not five in the next 13 months, which is what i think we get that is the one wild card to what everybody's saying. >> the fed could derail the rally? we're not pricing in the upward risk to rates.

>> there's going to be different ways you see this. when markets feel like they're offsides, it's going to inject a lot of volatility, as guy is drawing attention to you cannot tell me, ppi, now at six-year highs, is not a big deal for the market, and that isn't even in the fed's eyes yet. >> will we see that risk in the news conference tomorrow, janet yellen's last, in terms of the potential of what we're thinking, what the market is thinking, rates next year? >> do you think she addresses that in tomorrow's news conference i think the language will be benign she's going to go out on a high note i think they have this well-orchestrated. to pete's point, they have been. we have tony dwyer who comes on all the time and talks about how, you know what, yes, they will we're at least 18 months away from that. i think the yield curve is

flattening no one else seems to care. >> tony has had some calls that have turned out to be right. when people talk about the length of this cycle, the economic cycle and the bull market cycle, you also have to take the opposite side of what people say, it's not 18 months until the curve inverts before you get recession or the market responds i think the market will respond a lot sooner we're nine years into a bull market, five years into an economic expansion that's real >> are you surprised at all that the market has gone up with tax reform, as guy has been alluding to for a while everybody said it was priced in. if it was priced in, why have we shot up in the last month and a half or so so i agree with this being priced in. >> so you're probably right on that >> no question >> if you need to be right, that's fine. they've rallied 16%, how much is left >> let me ask you this >> pat yourself on the back all you want, i'm asking you from here on out. >> i find that very comical

coming from you, tim, quite frankly. when i look at this entire thing, you've got to look at it and say, have you ever thought it's priced in, how much of it is priced in i thought none of it was price income and now it's starting to move to the upside >> i'm not disagreeing, pete you still think none of it is priced in? >> now it's getting priced in, absolutely, getting price income but it wasn't priced in. two months ago it was priced in. three months ago >> i've had questions how much is priced in for sure. i'm not telling you that you haven't said there's room to grow small caps have moved. >> looking back at every juncture in time, can you look back and say, maybe it wasn't price incod in because we have d through those levels >> the bottom line, i think we've had a lot of policy -- >> the point is when this thing is past, is it news or is it not priced in and you stick with it?

>> you've got seasonality as well seasonality is such that it's going to continue to grind higher we'll come here on january 2nd, whenever the market reopens, there will be people putting new money to work in the new year. we'll have the same conversations that we seemingly have had the last couple of years. i think it will get done by christmas. i think the market will continue to grind higher. i would imagine that will continue through january >> and remember the next thing we're going to start fighting about whether it's price income is infrastructure spending >> can't wait for that one >> people will make more money because their taxes went down, some people. now a company that is doing quite well, we'll fight about that in a couple of months coming up, the man who called bitcoin 10,000 and then 40,000 mike novogratz is here he'll tell us where litecoin and ethereum are heading next. and why are the people who created a social media company now slamming it? we'll tell i couldn't it couyou

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welcome back to "fast money. investors liking facebook's

return shares up more than 15% in 2017. some of the billionaires who helped create and got rich off the social media giant have been slamming the platform. >> i think the tools that have been created today are starting to erode the social fabric of how society works. and what i meant by that is the following thing. today we live in a world now where it is easy to confuse truth and popularity >> how do we consume as much of your time and conscious attention as possible. it's a social validation feedback loop that it's like -- i mean, it's exactly the kind of thing that a hacker like myself would come up with because you're exploiting a vulnerability in human psychology >> at one point, 8 billion active users you don't get a mulligan you don't get to mess with democracy and not be accountable. >> so are the facebook billionaires right will these faults catch up with

the stock or does the company's dominance mean now is the time to keep on buying, pete? >> i would say the genie is out of the bottle. do i agree with what they're saying, talking about his own family doesn't get to use it, doesn't get to be in front of a screen, get outside and play and skin your knee, i agree completely with that that's way i raise my kids as well social media, way off into the distance but the genie is out of the bottle, i think it's there, there to stay, and video, the growth and addiction created by social media, i don't see that going away >> a part of the narrative, though, for his argument, though, is you don't know who the players are. you don't know if they're dominating the conversation because they're paying to dominate the conversation. you don't know what their intent is that leads to the notion of, will there be government regulations that will be forced on these guys that will cost them money to make sure that all the ads on there, all the content on there is legit? >> or they will spend a lot of money to make sure they sidestep

it or avoid it >> and zuckerberg talked about the spend increase in '18 for exactly those reasons. i agree. so i agree with that the reasons to be bullish facebook, we don't have to go through them again i do think there's going to be a day of reckoning, whether it's capitol hill or something else, for facebook what does that mean now? i'm not saying abandon the stock, but there are going to be some bumpy roads ahead i think it's going to come in the form of a lot of pushback, whether it's government or action groups. >> we've seen this before with tobacco stocks you have an addictive product that everyone wanted to have it's the same thing again. it's not going to happen tomorrow, you won't see zuckerberg hauled into congress tomorrow, but that's the black swan for this. meantime, you now have customers addicted to your product and want to use it that's exactly what you want as a business as an investor i would stick with facebook until proven otherwise. >> moving on, guess what, chinese internet stock hedge

fund legend stan druckenmiller told kelly evans that he loves >> i really like tencent and i like the position. they're in payments, they've got their own version of netflix, they've got their own version of cloud. wechad is probably the best platform on the entire planet for all of it. and then they have a gaming business >> tencent shares up more than 100% this year but are off 10% from recent highs. tim, are you in this >> i've been in this for a long time think of the things stan talked about. number one in gaming, they're very big in china in terms of payments that probably trades at about six times peg. you think of their ad revenue, the monetization, effectively what they're doing in terms of the video and subscription growth the volatility in the stock has had people concerned, it trades in the pink sheets here very liquid, very liquid. we normally don't talk about those names.

you're not messing around in an illiquid stock it's gone from 55 down to 45, rallied back up to 50. this is a very real company. to me i think the growth is very much ahead of these guys >> does this get caught up in the tech rotation, out of tech, that is, that we've seen in the united states? >> i suppose it could, as people are rotating around. a quick question for tim, baba or ten cent? >> ooh, would you rather >> just want to throw it in. >> great point i think it's ten cent. baba dominates but i think the four or five business models that tencent has, they've proven they're spinning off infrastructure plays in the tech plays. they're a vc company >> ai. >> trading incentive company i love it. >> it's a great trading stock too. now you have this company that has multiple product lines addressing a massive, massive market and volatility. you've got to trade this thing, you've got to be in and out of it when you're up, sell into those rallies and buy those dips still ahead, a number of

stocks are surging with bitcoin. there is one name that has brian kelly yelling buyer beware he'll explain what's got him so worried. i'm melissa lee. you're watching cnbc, first in business worldwide here's what's coming up on "fast. insane >> that's what traders are saying about four of the cheapest stocks in the market. and after we tell you the names, you might say the same plus -- >> ludicrous speed, go >> why does hedge fund titan mike novogratz think bitcoin is going? when "fast money" returns.

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welcome back to "fast money. the world has officially gone crazy for crypto and a number of the so-called alt-coins have gone wild today bob pisani is at the stock

exchange with more on the bitcoin boom >> reporter: hello, melissa. now they're moving into other cryptocurrencies on the coin-based exchange, bitcoin was up 4.8%. litecoin was up 70%, what! ethereum was up 28%. what's going on? some appear to be taking parts of their profits from bitcoin and buying into other cryptocurrencies like litecoin the theory is that bitcoin traders could take their big profits and move them into litecoin which hasn't moved as much, it would rally more, investors would make more money, you get the idea what's litecoin? it's just another cryptocurrency, simpessentially. it's the fourth largest bitcoin currency what's the difference between bitcoin and litecoin like bitcoin, litecoin runs on

the blockchain, a public ledger of transactions. there's a limited supply of litecoin, 84 million, versus 24 million for bitcoin. some say it's better than bitcoin because it has a faster transaction speed. bitcoin transactions don't happen instantaneously. that's very important. each transfer requires a number of confirmations that could take several minutes or more. litecoin can supposedly do it quicker. there are hundreds of these cryptocurrencies out there and it's not clear where this will end up >> thank you, bob pisani we decided to change our bug we made a new animation. check out the bottom of your screen now for our official litecoin watch there it is. 360. now you can watch it all show long as it lights up bob was talking about the transaction speed. for you, you think that was the key behind the rise today?

>> that's right, that's part of it bitcoin will generally take ten minutes for each confirmation. litecoin is much faster. what traders are doing is using litecoin to move between exchanges because it's very fast it's faster to get litecoin from one exchange to the other. there are these arbitrage opportunities that popped up traders are using litecoin they're somewhat indifferent about the price, they're using it as a movement type mechanism, as a vehicle >> so you think the rise in litecoin, does that make it more fragile? >> these things go up every single day i actually think there is a very good use case and a very good fundamental case for litecoin. they've been ahead of the curve on much of the tech, the lightning network, atomic swaps, these crazy things people are talking about. charlie lee has been a great leader of that community >> for more on litecoin's meteoric move and the crypto phenomenon, let's bring in mike

novogratz. he called bitcoin 10k and the recent move as well. he's a friend of "fast money," or "fast crypto" as we like to call it these days do you like litecoin >> i'll have to eat my hat, i'm glad i wasn't short. listen, i think they've got a very agile promoter. they've been an okay technology. you know, this lightning network, which a lot of people are talking about, i think is a wide move today. i don't think we'll have the same legs that bitcoin would i would sell it here versus buying bitcoin you have to remember, this is what a speculative mania feels like we're in the middle of a speculative mania, and phase one of this whole revolution is selling the story. none of these protocols are going to be ready for prime time for at least two to three years.

we're selling the story about what the future is going to be and people are piling on so right now, everything is storing value. why does bitcoin go up and the other ones lag most crypto players don't want to pay tax they think if they go back into fiat, the tax man will catch it. >> so they keep it in crypto and move it around >> they keep it in crypto. they're supposed to pay their tax, the irs will get pretty smart, pretty quick now that the dollars are getting pretty big >> i feel like every single time we have you on, you have an even bolder and bolder call when it comes to whatever cryptocurrency we're talking about, specifically bitcoin when you talk about that mania and being in the midst of that mania, does it make you concerned that the mania seems to be progressing maybe even faster than you think? >> i underestimated the viral network. i should learn, just being on twitter for the last month, i'm new to twitter, watching just how fast information moves

and so -- >> and driving up twitter's stock price too, mike. >> this is literally moving at lightning speed around the world. we're accelerating what would be a normal bull market phase you look at this on any chart, i was writing logarithmic charts today, and it's doing things the market has never seen. it's a big caution listen, market cap is now a half a trillion dollars heck, it could be there in three months in a speculative phase, you know, shorting it is really dangerous. but i wouldn't recommend, you know, going out on your credit card or mortgaging your house to buy that stuff you >> you had said the last time you were on this show that bitcoin could hit 40, 40,000, sometime in 2018 do you accelerate that call? we've moved this far, it's going viral, it's got to be higher >> so listen, at this pace it could hit 40,000 in three months, two months there are risks out there. the biggest risk is mr. and ms.

regulator are going to say, look, what we have got too many stories of people starting to borrow from their credit card. and when prices are moving this fast, it gets regulators nervous. >> mike, the last time you talked that the herd is coming, the institutional investors. where do they stand? are they in this market? >> absolutely not. i was actually, speaking of one of the biggest pension funds in the world, they knew more about crypto than most of us, they're doing their homework they're not in as an institution. >> can they not be because of their mandate? >> all of these guys are looking at this as a potential asset class. and i think, mark my words, when goldman sachs starts trading it, you'll see the pensions coming in as more and more credibility comes, futures was a big deal. getting some of the banks to participate. that will get the pension funds in i don't think the speculative phase of this is over.

i think it will be bumpier than it has been. and i don't know if it lasts three months, 18 months, two years. it will end at one point and the second chapter of this decentralized revolution will be when these actually protocols start working. >> so right now, you're planning to launch your fund next year, early next year or so? >> end of the week >> the end of the week did you move that up >> we had -- listen. launching a fund is always challenging. i wish we had launched it three months ago >> sure. >> because it would have been much, much earliest investing. at one point you just start. so we're going to start. and we'll see from there >> i think i asked you this question last time, but what is does your allocation look like, given the runs we've seen and everything that's gone on since the last time we spoke >> listen, i'm a trader at heart. sometimes i trade, and i seem smart. last time i sold a bunch of bitcoin at 10,000, 11,000,

didn't buy those back, you can imagine how much that cost i'm guessing on a dollar basis, about half invested at this point, having taken profits on some things, waiting for volatility >> are you personally or through your fund going to be looking at other ways to invest in bitcoin or blockchain, whether it be investing in some sort of exchange >> we have investments all over the ecosystem, in mining originally i had this thesis, you're not smart enough to pick just the winner so spread your bets so i spread my bets all over the table. >> the types of investments that are outside the cryptocurrency, what do you think could be the most disruptive? granted a lot could change over the next couple of years >> the best investments are the exchanges. exchanges are printing money right now. you wish you owned a big chunk of coin base or any of these big

exchanges. >> will it be a race to the bottom in terms of the commissions? once you have a lot of exchanges and a lot of platforms, it's like the e*trade/ameritrade/schwab war we've seen ongoing >> we're still early on in the building of this thing the hard part is getting money from the exchange to the exchange we've looked at banks, the traditional banks haven't wanted to participate in crypto space that's partly reputational, that's partly protecting their own turf >> we've been in a bull market for basically everything right now, stocks, crypto. can bitcoin go higher if stocks crash? if we see a major correction in stocks >> i think so. if you think about total market cap, bitcoin is still two-thirds of apple, it's not enough that you're going to see the wealth effect if bitcoin was a $2 billion market cap, there would be a lot of correlation, we're losing money in stocks, but you have a

different investor base. the crypto investor base, you're starting to get more crossover people the cristo base, they're not looking at the s&p they really aren't they're looking at all their different coins. i think it's still a pretty uncorrelated asset >> mike, obviously cryptocurrencies are want disruptive i don't know the answer, i don't mean to be glib. if it's as disruptive as we think it is, what industries are being disrupted? then the question is, are there companies you can short in terms of stocks? >> right now no industries are being disrupted. the biggest industry being disrupted is gold, right bitcoin is one of the few use cases for the blockchain right now, gold being stored value the rest of the coins are promises for the future. there will be a decentralized uber that could disrupt uber, but none of them are ready to play, because the public utility, if it's ethereum, the

kind of global decentralized super computer, isn't nearly fast enough to process anything. and so, you know, we're two to three years out from when we're going to see the real disruption happen there's going to be decentralized cloud computing, decentralized file sharing >> are we actually seeing the disruption to the gold market? i know a lot of people like to say it's competition for gold. if you take a look at holdings in the gold etf, they've been at the highest level since may 13 so i mean, may of 2013, not may 13th if it's not a competitive store value, can we say it's a store value? it seems like whenever you ask somebody, well, what is it, it's a store of value, it competes with gold. what if it's not actually competing with gold here >> well, again, different user base old people, 5,000 people, people have seen gold as a store of value. this new generation says, hey, this could be a store of value are there some people long

bitcoin, short gold? very few, maybe a couple of. gold will fall because interest rates will go higher >> i want to switch gears here i know you're the crypto baller, we like to talk about crypto i want to talk about taxes with you. there's a quote in a bloomberg article, and you talk about the treasury secretary, steven ma nitrogen mnuchin. you said, it yachdiots, gary con should never be able to live with himself >> first of all, i apologize, i shouldn't speak that way tax code is complicated, i don't understand how it turned out the way it did, it doesn't seem to make a whole lot of sense.

my thought about gary cohn, how can you let it happen to us? it's penalizing the coasts, the states that didn't vote for trump, for the benefit of the states that did. that doesn't seem a smart way to do tax >> you live in new york? >> i'm a new yorker. >> you could have a crypto fund anywhere in the world, mike. would you move >> i love new york city. >> you're going to stay here no matter what even if they jack up your taxes >> we'll make enough money in crypto to pay it back. >> last quick question, is tax reform going to be good for the stock market or is it all priced in >> i think in the short run it might be priced in i think what will be good for the stock market is, the economy is growing, the fed is still going relatively slow, tax reform is a net positive and so i think you're going to see some correction in the next few weeks. people have been long, hedge funds have had great years

there's going to be tax selling and end of year selling. i expect a 3 to 4% correction. i don't think the bull market is over >> mike, great to speak with you, hope you come back. >> he'll be back >> i hope so >> he said not that the nasdaq has been involved, chicago mercantile exchange to me is still the way to play it we've been saying that before cryptocurrencies were big. this is just the cherry on top >> what's interesting, the relative value that seems to be taking place within the crypto space. when bitcoin futures came out, wow, we know this is going on, we know people are getting behind it, what's next it was as if the other eight or ten main cryptocurrencies sold off going into that event and they rallied like crazy after that he highlighted -- mike made it very clear, this is a trader's paradise the u.s. treasury bond market at one point was like this. what i mean by that, there was

not proliferation of information. this is a trader's paradise. that's why it will go on >> the one thing i will say, and i would agree with mike, this is a speculative frenzy make sure you're taking profits. if something goes up 70% in a day, don't be afraid to sell some i bought some litecoin a week ago, i sold some litecoin today. i took some profits. i still have a position in it. use your head a bit. still ahead, it is bitcoin week here on "fast money." we've got a psa on one soaring stock that is masquerading as a bitcoin play and it could be very dangerous for investors who are buying it hand over fist we'll give you the name. plus a number of so-called cheap stocks are surging are any of them rth urwoyo money? the traders will go bargain hunting. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward.

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welcome back to "fast money. the s&p 500 hitting new records today. a number of the cheapest stocks in the index have been surging breaking it down is a man who is by no means cheap and definitely worth every penny, dom chu >> reporter: i do like to think of myself as worth a premium price point, melissa whether we're talking about stocks that aren't exactly trading at a valuation premium but have still managed to generate decent gains for investors so far in 2017, we take a look at the s&p 500 companies that are trading at discount valuation to the overall index.

we used straight up price to earnings ratio an oman of cheap stocks have turned in. the airlines have been a laggard for pretty much all of this year but delta has managed to earn a 10% return while trading at 11 times earnings general motors trading at nine times earnings a 19% gainer this year, just about in line with the s&p 500 ebay trades at six times earning, gaining 6% this year. computer maker micron trades at ten times earnings and has doubled in price, a 92% return the value versus growth trade will be one to keep an eye on as we head towards 2018 this year the russell 1,000 growth etf, ticker iwf, has handily beaten the russell 1,000 value etf. value is up 11%. melissa, does that trend remain your friend or are we due for that reversal of fortunes?

that's something to watch. back over to you >> thank you very much, dom chu. who likes cheap? >> the one of that group that i've been wrong on is delta airlines, and the airlines in general. i did not think that would do as well if you get a breakout above 55 or so, that's going to be a nice way to play it the dynamic that's going on with a lot of these is that you do have a lot of these funds that have had a big year long and short. they're unwinding these positions. you've seen some of the short, the names that had big short interest rise a bit too. you could get a breakout at delta and not play that. >> even the ceo of delta was surprised. i still go back to gm. i like a company that trades in the single digits. they've got growth, they've got margins, and they've got great cash flows i would throw micron in in the same category. some people thinks it goes from single digit to double digit this thing is way too cheap if that's going to happen i own those two names.

i'll throw in one more, ford ford has not done anything in forever, it seems like when you look at their u.s. sales, what they can potentially do internationally, and the cash flow is there, and this thing is trading in the single digits, that's another trade i think is cheap. >> i'm long, i like them not just because they're cheap, but the perception of these two companies are that they're perennially on the wrong side of both efficiency and their business model gm finally seems not to be getting priced for peak auto as pete said, they're hitting it at 6% dividend >> delta has an investor meeting on thursday. my sense is they will say good things, to bk's point, it absolutely breaks out above 55 if you ask me to pick amongst those four, delta looks the most interesting. disney's latest "star wars" installment "the last jedi" comes out this week. we have a very special "options action." plus a handful of stocks are soaring. brian kelly says buyer beware.

one of those names could be very, very dangerous we'll break it down.

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welcome back to "fast money. something is not right

oh, there it is. the bitcoin bug is back. now we can continue. >> whew. >> fox and disney may announce a deal as soon as thursday, according to our own david faber. take a listen to jim cramer talking about what the deal could mean for both disney and for espn >> one of the reasons why i like this so much >> yes >> is that you will now hear talk that if disney really feels there's a problem with espn, they combine it with fox and they can spin it off to shareholders, fox sports >> whoa. fox sports is not going with espn regional sports networks >> regional sports if you've been shorting disney because of espn, it might be a mistake. >> how likely is disney to spin off espn with the regional sports channels it could acquire from fox and is jim right, is it a mistake to bet against disney or iger for that matter >> i think it is there's a new measurement, it's

called total live audience measurement or tlam. they're ratings have gone up and there's probably an ad tail-in for these guys i would never count out disney or espn. bam tech, why shouldn't they be in control of their destiny? >> those are huge numbers, we're talking about billions per year each that's the biggest problem with espn do they spin that out? maybe. would that be the worst thing in the world? i don't think so, it could be a positive if they hold on to it, i don't know that that's a negative for disney either. where they put the entire sports networks together, that could be a plus too >> you would think bob iger would have one foot out the door >> it spurred on a lot of valuation. >> it started with that earnings call, i think.

the conference call. >> three earnings calls ago. but yes, to your point, the last one specifically he sort of righted the ship when it was a $94 stock, earnings call, $92 in the post market and rallied the next day, and we had that conversation. viacom has had a stealth rally, 29 1/2 now if you're looking for stocks that are still cheap, viacom big. with "the last jedi" set to hit theaters big, the force is with disney. wait, that's not texas that's the death star. mike's in the death star when did you go to the dark side, mike >> reporter: the day i decided to go trade options, i guess i think everybody else should join me. it's hard to resist. so we did see above average options activity in disney today. calls were outpacing puts by two to one at midday the most active calls were the january 110s ultimately over

6,000 of those traded the average price was around $1.70 when you consider that the fox assets are being acquired for approximately 15 times forward earnings, that is accretive, that gets you right there. i can understand why they would be making bets like these ahead of earnings. >> all right bk, are you bullish on disney? >> yes i don't think you bet against bob iger at all, particularly a guy that doesn't necessarily need to be there, he could have retired. i'm bullish on disney. >> what happens to some of the other studios out there? content is king. >> for example >> for example a lion's gate >> we have our friend from lion's gate that we've talked about for quite some time, now the stock -- lgfa and b. we've loved that stock since day one of this show i still think -- >> do you see more m&a?

i think we do. there's grab for content obviously we talk about cmcsa all the time, comcast. if they're out of this fox deal, now what guy keeps bringing up hulu there's something else they'll have to make a move on >> mike, thanks for that, enjoy the death star for more "options action," check out the full show friday 5:30 p.m. eastern time. next, it's the one stock up more than 600% in the last three months thanks to bitcoin the traders on the desk say buyer beware, the stock isn't l 'sraedp be. while explain. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy.

what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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when you buy any new samsung device with xfinity mobile. a new kind of network designed to save you money. click, call or visit today. welcome back to "fast money. companies are still feeling bitcoin's halo effect. check out the performance of names like square, overstock, cboe, cme. one company in particular has caught the attention of brian kelly. not in a good way. the stock is not what you think. bk says buyer beware >> absolutely. listen, i traded through the internet bubble and saw stuff

like this all the time people would put dot-com at the end of the name and the stock would rise this is a company that used to be a biotech company when i say used to be, i mean like a couple of months ago. they were selling medical equipment, biotech equipment they have absolutely no experience in blockchain technology, in cryptocurrencies and what have you. they paid $12 million for a cryptocurrency mining company with assets that range anywhere between 2 to $4 million. and you could just buy them only they bought a bunch of cryptocurrencies minors. they didn't need to buy a company. that is a huge red flag. why are they doing that? their corporate structure is very strange, very convoluted. there's multiple different share classes in there let's see what happened to the stock, riot box chain.

bio biop tips, i guess it's called it ramped up then all of a sudden you start seeing this thing go sideways. they start buying assets, they say they're in cryptocurrency mining, they name themselves riot blockchain. here we are from a $45 million market cap to $235 million mart cap. i haven't seen them put dollar one in the bank from this. mining is very expensive i'm not sure that this is actually a blockchain company. so you need to be careful is the bottom line. >> basically they spend $12 million to buy a miner and they gained about $200 million in market cap for that? that's a pretty good deal on their part >> ait's a great deal on their part they paid themselves a hefty dividend as well as part of that >> interesting buyer beware thanks, bk up next, final trade

(news anchor) downtown traffic is still bad. expect massive delays. (radio channel changing) (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic.

then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. and sacramento is just the beginning. with advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. what excites me about this technology is that we're using some of the most cutting-edge machine-learning, and ai, to help solve the most fundamental challenges that cities face around the world. who knew asphalt could help save the environment? (lani) and the possibilities are endless. i thwell wait. what did you meetthink about her? it's definitely a new idea, but there's no business track record. well, have you seen her work?

no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. final trade time >> i love dom chu, he steered us towards what's cheap out there >> june 2015 levels, oil services moving up there >> our resident baller >> i need a break from the volatility of cryptocurrency i think you buy tesla. >> it does pale in comparison. >> i like dom chu because i just

like dom chu >> what's not to like? he's the hardest working guy i'm melissa lee. see you back at 5:00 for the continuation of crypto week. meantime "mad money" with jim cramer starts right now. "mad money" with james cramer starts right now. my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market swhir and i promise to help you find it hey, i'm cramer. welcome to "mad money. other people want to make friends, i'm just trying to make you money. my job is to not just entertain, but educate and teach you. so call me or tweet me @jimcramer. listen to me, there is no such thing as the stock market.