is a smart way to consolidate credit card debt. certain borrowers cut their credit card interest rates 42% and increased credit scores 17 points on average. borrow up to $100,000 with low rates and no hidden fees. find your rate in just two minutes, and take on your debt at sofi.com. welcome to "options action," special coverage of the gop tax plan a live shot of capitol hill where the final bill was released moments ago tax hopes have fueled a rally today, all major indices closing at record highs. the traders are breaking down the market moves let's first get to ylan mui with the latest on what's in that bill, ylan apparently we're having some difficulty with ylan here we go

>> reporter: melissa, as you said, that bill is now public. and here is some additional details that we have learned about what's in it the repatriation rates are slightly higher than what we had been reporting 8% for illiquid assets and 5.5% for cash previously we had been told that rate would be 15% for cash the individual mandate, that repeal will begin in 2019. so a one-year delay of the repeal of the individual mandate. on carried interest we're told the three-year holding period, that both the house and the senate have proposed, will remain also the first in/first out provision that would limit investors' ability to choose when they sell their stocks, that is out of the final version of the bill. now, a lot of the other sort of headline numbers that we had been reporting are now confirmed. the corporate rate would be 21%. and that would take effect immediately. the top rate for individuals,

37%. and that would apply to individuals with income of $500,000 or above or couples with income of $600,000 or above. one of the key changes that republicans made to the bill was to expand the child tax credit, make more of it refundable in order to win over senator marco rubio. however, part of the way they paid for that was to limit the income level at which you can qualify for it before it had been $500,000, they've put that back to $400,000 also that child tax credit would now apply only to children who were 17 years or younger that is consistent with current law, a little bit less than what rubio had been looking for so just a quick rundown of some of the deeper dive details of the bill that we are learning here as it becomes public, melissa. >> ylan, how does the math shake out? we understand over the past eight hours senator rubio moves to the yes column, senator

corker moves to the yes column where do the others shake out? >> reporter: we're still waiting to hear from some of the others including mike lee who had worked closely with marco rubio in order to expand that child tax credit his office, the last we heard, he was still undecided on it also unclear where susan collins will fall. several of the provisions that she had looked for, including an expanded s.a.l.t. as well as expanded deduction for medical expenses, those are in the bill. she also wanted a vote on health care stabilization education and it doesn't look like that's going to happen before this tax bill comes up for a vote next week >> ylan, thank you, ylan mui in d.c. with a rundown of what is in that tax bill put out by the gop. we saw the rally in today's market, the markets are acting as if it's over the goal line at this point is this something you should buy? >> i can just tell you in my own conversations with clients, you know, big mutual funds, fully half believe it was priced in. >> really? fully priced in? >> and another half are like,

no, it's more like 60 or 80, implying there is upside related to this political -- >> which is interesting, because if you listen to the street, my sense is that strategists are now able, with some tangible numbers, now they have them, to really put some numbers on eps growth now that we can do this for 2018, i'm hearing from 10 to 18% in terms of eps growth for the s&p. that means you have not priced it all in and we're probably at two-thirds i agree, a few weeks ago we were saying this was uncertainty. >> you get some more data, some more stuff and model, okay, you can start figuring out what it means to eps growth and sectors and start thinking about what it means as it relates to economic growth that's the one area. >> i sense you have some -- >> no, i don't have -- i get it, at the end of the day, you know, when you think about it, you can say, okay, so certain sectors should be trading on market

multiples. then it comes down to what does it mean for economic growth and jobs that's the thing i think that it's going to be a 2018 argument for most of the year >> i agree, but i think from the trader point of view, you can have a boost to the stock market without necessarily having a boost to the economy >> except for the fact that we're eight years into this bull market and we also are in late stage in the cycle we'll have global tightening for the first time in a synchronized fashion in 2018. for me, all those factors are going to come into play. >> for the first three-quarters he have this bull market, this was an earnings list recovery. in other words, we were complaining about the multiple expansion just because rates were so low. this tax bill, let's be very clear, this is all about corporate america. this does not really help the individual in fact in many states it really hurts them be clear 21%, the repatriation of cash versus liquid was going a little disappointing. i bet a lot of guys don't do anything with that number.

but 21% forces a lot of reinvestment >> that's what makes the rubio posturing so important not only what he did but for his prospective political future going forward. >> mike kelly, we were showing by sector who could benefit the most by a decrease in the corporate tax rate, is that where you should invest? >> look, i think when we take a look at what the eps impact is, obviously you could say this deserves a little bit of a boost in that area i think dan and tim were touching on this, it's important to keep some perspective on this when you take a look at the total income tax revenue in the united states, it's surprisingly small to a lot of people in the context of a $19 trillion gdp. you're talking about maybe $350 billion. how much of that impact actually flows through to the economy broadly isn't going to be that great. i don't actually factor in any benefit for that, frankly. also to the repatriation side,

let's remember that a lot of companies that had significant cash overseas found mechanisms to bring that capex to the state by obviously issued debt apple is probably the best well-known example of that i take a look at this, i think we probably, 75%, baked this into the cake in terms of the s&p multiples. >> bank stocks could be one of the biggest beneficiaries of tax refo reform the chart master sees some trouble for the banks. why don't you head to the plasma to break it down >> financials are a little ahead of the s&p, having lagged all year the real question is, as a bet, are you really going to get paid for the risk i just want to start with perspective from the prior bull market high. in fact this is starting from the exact prior bull market high october of 2007. and if you were simply in the s.p.y. versus the xlf, you've

got this if you were in the market, and you've got this if you were in financials that says a lot. now, let's look at a fewother charts here, and then go forward. in fact, at this point, adjusted, you're not even back to new highs we know that the total market cap of financials are well above. but because of the share dilution, if you're sitting here in stocks like bank of america or citi, you're nowhere near where you were, one was, in the '07 peak let's keep going now we have -- i think this is important. this is exactly a year ago this is where we had the euphoria around what is actually happening now. this is the election where financials came to life. what's happened since, financials have traded higher all year yet they've made no progress, absolutely dead flat on a relative basis adjusted for risk, financials have not paid you. in fact you have generated

negative alpha, so to speak. are they really going to do better going forward take a look at regional banks, this is even worse the same line, exactly election time what we know is this is dead flat and the -- this is the most rate sensitive area of the market, financials, is down. that is going to be the offset to any positive relating to financials, is that interest rates are really stuck so if you were to say this was a currency, a stock, commodity, basically this is going anywhere and there's nothing in this chart that suggests any great upside let's say it is and this is some sort of head and shoulders bottom all you're talking about is getting up to two five, two six. are we really going up to three? back to the peaks and volcker was fighting inflation here's the trend line. you're still well within the

down trend yes, we haven't made a new low, that's important in order to validate a new cycle, you need to make a new high you have to get above 305. obviously the taxes and politics are good for financials but they have this burden of a very benign interest rate requirement. >> all right i want to go to mike, mike, how are you trading banks? >> i think xlf is the most obvious proxy for financials generally, and it's a very liquid and tight market on the options side i think what's interesting, we saw the vix close below 10 today. that presents an opportunity if you want to buy some premium i was looking at the march 27 25 put spread in xlf. you could spend 25 cents for that if it went through that 25 strength, you're going to get a payoff of almost five to one on this trade, that's basically taking advantage, number one, of those very low premiums. also out of the money puts haven't come in as much as the at the money premiums, relatively speaking. you look at the biggest

contributes to xlf, we're talking about companies that all are trading at or above the average analyst price targets. so these are companies that essentially are outrunning the people who follow them most closely. >> you don't like financials here >> no. i like his trade a lot for a couple of reasons. when it looked like tax was going to be a 2017 thing, the xlf was at 24 in august. it went straight to 26 it consolidated, right then it made this other move in the last month and a half or so up to 28 mike is choosing 27, 25. he's giving himself three months you don't need anything as far as rates or tax or this, that or whatever you can just have a good old fashioned pullback in the market and this trade offers a good risk/reward. we're all over the big story in the after hours session, the gop releasing the final version of the tax bill. representative brady is set to speak outside his office in a few moments, we'll bring you the latest much more "options action" on this very busy night

want more "options action" head to our website and sign up for our newsletter we have more than 100,000 subscribers. what are you waiting for 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 i just finished months of chemo. but i don't want to talk about months. i want to talk about years. treatments have gotten better, so... i'm hoping for good years ahead. that's thanks to research funded by the american cancer society.

the same folks giving me free rides to treatments, insurance advice,and a place to stay during chemo. i need that stuff like you don't know. and now that you do, please give. call 1-800-416-4357 today. your contributions to the american cancer society fund valuable research but that's just the beginning. a cancer diagnosis can kick off years of challenge. and that's where your donation truly shines. you help us fund free rides to treatment. a live 24/7 help line, free lodging near treatment centers, and even efforts to expand access to insurance. so, please - donate today at cancer.org and help attack cancer from every angle.

well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. welcome back to "options action." representative kevin brady, chair of the house ways and means committee is set to speak outside his office at any moment let's get to ylan mui with more on the release of the tax bill >> reporter: the house is planning to vote on the tax bill as soon as tuesday that is what we have been hearing, with the senate

following after that one number that republicans are going to be highlighting is that a median family making $73,000, their tax cut under their plan, according to their analysis, would be $2,059. republicans have been criticized for their tax plan as primarily benefiting the wealthy because many of the tax cuts for individuals expire versus helping the middle class so that is a number you can expect to hear them talking about a lot, especially as they use this win as the crown jewel in their legislative agenda looking forward to 2018. >> so the median income on that figure is -- >> reporter: a family making $73,000. >> the tax break will be $2,059 a year >> reporter: that's right. >> so we know they're going to vote on tuesday. any fireworks expected there smooth sailing to the senate and then we start counting senators? >> reporter: i feel like the real question mark has been the senate

the house has passed this with a very ample margin. the most vocal sort of agitators had been the freedom caucus and conservatives in the house they had been looking for a 20% corporate rate that began immediately. they got half of what they wanted in the bill, 21%, but it does start in 2018 so i think they'll be pretty happy with what they see here. we do know that republicans have been briefed on this bill. the conference call is either just recently wrapped up or still under way. republican reaction will start trickling out to this. i do expect at least in the house this is going to be smooth sailing. >> ylan, thank you, ylan mui in d.c. we're waiting for congressman kevin brady, cirhaman of the house ways and means committee, to speak at the podium "options action" will be right back 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

or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost.

so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. kevin brady, chairman of the house ways and means committee, speaking outside his office. let's listen >> we're also going to have tax

relief for families in high tax states we made that commitment to our s.a.l.t. lawmakers we achieved that we now have a $10,000 deduction for s.a.l.t. taxes families can fill it up with the way they need for their families we have a lower top bracket. really a key ask by lawmakers in s.a.l.t. states. those help everybody in america as well. then we did achieve even more middle class tax relief. and so all that was done to drive tax relief for everyone, regardless of where they live. [ inaudible question ] absolutely not, that was continuing to lower the brackets, lower the rates. we want people to keep more of where they earn wherever they live we achieved that >> reporter: can you talk about the timeline, passing the house, senate

what about senator corker, does that [ inaudible ] >> i always leave the timing in the vote to schedule for our leadership i do know we'll be returning monday, to begin the rules process. the votes in the house and senate will occur after that the timing on leave sequence to our speaker and leader yes, i do predict both the house and senate will approve this tax reform bill. lots of momentum [ inaudible question ] well, i would direct you, we will have joint committee on taxation we'll lay out the revenue tables here shortly what you'll see is that there were adjustments made throughout the whole tax reform bill. there wasn't any one or two provisions that allowed us to stand with the $1.5 trillion

it really was a combination of different adjustments in different areas, which we think is the most balanced way to do it [ inaudible question ] look, i think -- no. i know everyone's lives will be better off under tax reform, because of the tax relief families get, because of the higher paychecks, because we have a stronger economy. and again, this is all about also bringing back jobs from overseas, which if we had not acted now, we would continue to see our headquarters, our research, our manufacturing, and our jobs leave the country and so the combination of that will raise paychecks and allow you to keep more of what you earn, maybe -- and this isn't really talked about much, but we need a tax code where our local businesses can compete and win

anywhere in the world, including here at home we achieved that >> we've been listening to kevin brady, chairman of the house ways and means committee, speaking about the gop tax bill just 30 minutes after the filing of that bill the house will vote on the bill on tuesday, clearing the way for the senate to vote later in the week tim, he thinks it's going to clear. what does this mean for the markets? >> that's really what we're here to talk about. i get back to the consumer discretionary or core retail big box place and those with the highest effective tax rates. 39% effective tax rate, totally domestic story, home depot is playing 36%, consumer play if you think the mortgage deduction isn't a big deal, these guys are the biggest beneficiaries. a dow stock that one of our traders says is about to take off, after this. 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

well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

welcome back to "options action." chip stocks have been one of the hottest trades of the year, the etf surging 40% for its best year since 2009. breaking out in the last six months, micron is up a whopping 38%, intel up 26%. dan has been hot on the space. >> i've been hot on intel for a host of reasons. the stock has had this massive rally over the last three months some of the fundamental moves the company has been making through acquisitions and such over the last two years are kind of paying ff look at that one-year chart, it had that massive breakout after q3 earnings. it checked back to that and it kind of helped we have a five-year chart. look at this epic break out that it just kind of embarked on here maybe there's a little more room to the downside, a gapfill, that sort of thing. the 20-year chart, what is our lady louise say? >> the longer the base, the higher its face. >> this thing has got a support

down 5 or 10%, you want to be long it. for me in the near term, you want to set up with a short term call calendar. you want to finance the purchase of longer dated calls. today when the stock was trading at 44.60, you could sell one of the january 47 calls for 30 cents, buy one of the february 47 calls for 80 cents. that call calendar costs you 50 cents. i'm selling the january to buy the february because january options will not catch their q4 earnings on january 25th but feb will, i think feb will be the catalyst, earnings will be the catalyst you want to own it >> mike, what do you think of the trade? >> first of all, i definitely like calendars the other thing is when you think a stock is going to move in a direction, do what dan has done and choose a strike where you think the stock is going to go this one is a good trade >> carter -- >> did you see those nifty charts it's amazing those are great lines. the breakout is real, the gap is

real let her rip. >> you concur? >> fundamentally, if you think about what's going on, the first half of the year, has been a drawdown of inventories. inventory build will help this cycle. stay long. >> if there's one caveat, what would it be? >> could it fill that gap. that's why i'm trying to finance the longer dated calls i like calendars in a period like that, we'll go into this holiday period which things should settle down a little. 47 is that prior resistance. it could come up there and stay there. that's really what i want it to do, inch forward over the next few months final call, mike >> if you think financials are going to pull back a bit, the march 2725 put spread looks good >> dan >> i like that xlf trade, obviously. i also like figuring out ways to get long intel >> educator? >> xlf the problem is the rates i do not believe they're going anywhere fast. >> thanks for sticking and for us tonight >> great to be here.

a sad day for us here on "options action" and "fast money," one of the best pages we've had, we've had a tremendous page program where we get all these wonderful talented kids, ariel jao is leaving us today, she's done yeoman, yeowoman like work there is always a bull market somewhere i promise to help you find it. "mad money" starts now hey. i'm cramer welcome to "mad money. people want to make friends. i'm just trying to make money. my job, not just to entertain you but educate and teach you. so call me or tweet me what can i say you can't keep a good market down we have a fantastic report fro