>> betting parlors. >> betting parlors, yeah. >> it was a felony.l, it was a felony when a law came into effect, because it had brought down the market in 1907. and they said, "we're not gonna let this happen again." and then 100 years later in 2000, we rolled them all back. >> a bill to reauthorize and amend the commodity exchange act to promote... >> the vehicle for doing this was an obscure but critical piece of federal legislation called the commodity futures modernization act of 2000. and the bill was a big favorite of the financial industry it would eventually help destroy. it not only removed derivatives and credit default swaps from the purview of federal oversight; on page 262 of the legislation, congress pre-empted the states from enforcing existing gambling and bucket shop laws against wall street. it makes it sound like they knew it was illegal. >> i would agree. they did know it was illegal, or they knew it was prosecutable. [watch ticking] >> some people strike it rich after the law passes. >> i know people personally who have taken aw

if you wanted to press a directional bet, that's great. if you want to hedge the portfolio and the cost is declining. that can make a lot of sense. you have a bunch of things that work for you if you make the bets. >> even names where the options were expensive. like apple before earnings. apple options were saying there would be a $38 move and it wasn't enough. not nearly enough because it ended up being about $50. >> let's talk about one of the single stocks that had a big move. an impact in the market and results of expedia giving a huge boost to priceline. shares of priceline up 4%. is this rally going to hold, especially with the earnings coming up? there is a warning sign and let's call to the charts and find out what it is. carter, what do you see? >> a couple of charts. i think there is a tell here in the action. let's look at them. this is priceline. it shows the well-defined tops and a level, a level from which it broke out. the break out is already occurred. after this powerful move for the first time we broke trend and we were

i bet you tell stories. did you tell a story today? >> yeah, i bet you did you went up to our friend and said, did you see that? your friend said, no, no he didn't. right? that's a story. so, i will tell you a story. in india, here we have super heroes like, tell me a hero. >> super man. we have super heroes in india. krishna. lifts mountains and throws them to the ocean to create bridges. i will tell you the story about a super hero. krishna as a little boy in the village where the trees blow and the water flows and the birds fly and the grass grows, in this village there are cows. and people and they go to the river and they go to get their water. and they go to the river and what do they see? an evil demon is polluting the river. callia. and they can't get water because it's killing the cows and the people. so, they go to krishna and say, please, do something about this this is not good. he says, he thinks about it and says, okay. he takes his friends to the river to play. they play ball. they play with the ball and then by accident

he said, can i bet this? said that's too much marijuana, he couldn't beat that much, like that was a table max or something. >> the dealer tries again to alert the gambler of his illegal actions to put an end to the situation before it gets out ofó hand.óóóçóóóóóóóóóóó >> he was so wasted that he didn't know what was right fromó wrong.óooóóoóçóóçóóóóó i was trying to be real calm  about it, quietly tell him to  put it away, not to make a  scene. and maybe he could just leave  without getting in trouble, you know. >> but when none of his efforts to get through to the player seemed to be working, the dealer calls for backup.o >> that gentleman in the black ó suit is the pit boss.óçóóçoóo when he shows up to a table, o that usually means there's a  problem. >> the pit boss quickly realize that security needs to be  called. >> when i arrived at the t

i check on my score on a game i bet today. >> what did you bet?ohio for the first half. hopefully i'll pull through. >> what do you think about all this? about floyd's public image and the $100,000 bets on games? >> he works for that. he can do whatever he wants. >> he does work for it. and for all of the stuff he talks, his message is always hard work. how do you beat a guy who's not only as talented as floyd is but seems to work harder than everybody else? >> working harder than him. >> do you get the sense that he is working harder than you? >> i don't think miguel cotto is at this level by not working hard and dedicating himself to his craft. i mean, is he a future hall of famer? absolutely. and may 5th, we want to give the fans excitement. we want to give them what they want to see. they want to see two of the best fighters in this era, meeting in the square circle and giving them excitement. it's all about excitement at the end of the day. >>> what did you think of his fight with victor ortiz? >> you know, i think the experience of victor ki

betting on blue chips? have you seen ge, mcdonald's and microsoft? microsoft in particular soaring on strong earnings. apple is seeing some violent swings lately. is that is a sell signal ahead of the charts? >> one of the strongest analysts on the street, jp morgan whether the bounce is for real. >>> lots to trade in today's show. let's get to the start. the gains we were seeing. you love mcdonald's, i don't mean the food but the stock. >> i love the food and the stock. so i'll be specific that way and this is one michelle, that obviously, we talked about last night, as far a little plead through from chipotle. their international sales were better than expected. in the united states when they talk about people cutting back, mcdonald's comes up. i don't know why they don't think the same thing overseas. people who need that instant gratification and they need to cut back, why wouldn't that work overseas? obviously it does. sales globally, still 4% growth. despite all of the nay sayers out of europe. i like this story going forward, still. >> how abo

they bet the new teal will make them serious dough. who is it? managing my diabetes is part of my life, between taking insulin, testing my blood sugar. is this part of your life? freestyle lite test strips? why, are they any beep! wow, that hardly needs any blood! yeah. and the unique zipwik tab targets the blood and pulls it in. so easy. freestyle lite needs just a third the blood of onetouch ultra. really? yep, which is great for people who use insulin and test a lot. max and i are gonna run out and get some right now. or you can call or click today and get strips and a meter free. test easy. >> at one point, col value was at almost eight times the value. >> options and dunkin brands are active this week. what did you make of the activity. >> volume was up about 10%. a lot of buying in the calls. dunkin reached a new deal and people are wonder figure that won't help the business if there is not more to the story. >> time for the upside call and we look back at the winning options trades. everyone knows about the smashing success of the "hunger

the daily double is loser bet. never bet on a horse to win.tion? if it's a topic, subject you like and you know. go for the full daily double, otherwisotherwise go -- >> dana: maybe not. >> eric: double the amount of the square. >> dana: how much money you have in your account at the time? >> eric: of the square. >> bob: if it's $500 -- what do you think is your strongest? >> dana: my strength -- >> greg: the barker back pack. famous monsters. >> dana: the other thing, i got good advice from somebody on twitter today. i can't remember your name, but it was very good advice. i hope you're watching now. one of the hardest things on "jeopardy" is getting the buzzer right. and she said don't dip when you buzz. i thought oh, i know exactly what she means. it drives me crazy when people are on and they go -- you should don't that. calm, cool and collected and hit it like that. >> greg: look. go back to that shot. i have to do this. thumb exercises. do 400 of these before you go to bed. >> dana: why do they ask the question -- why give the answer ins

you bet it is.kids don't understand how important these subjects can be that's why time warner cable developed connect a million minds. to introduce kids in our communities to the opportunities that inspire them to develop these important skills. how can my car go faster? maybe your child will figure it out. find out more at connectamillionminds.com >> if you don't know representative jerry nadler, you should. one of the smartest members of congress and his views don't shift with the political winds. even though he avoids partisan bickering, when house republicans provided a provision in the keystone pipeline that was too much for the normally reserved jerry nadler. >> for a year avenue, republicans refused to work with democrats, completely offending the historical traditions of our committee. >> joining me now the aforementioned congressman jerry nadler, thank you for being here. >> it's a pleasure. >> let's begin with the transportation bill. what happened, and why is the republican party doing s

this month dan made a bearish bet on microsoft, but the stock has been flat. with money left, is dan ready to pull the plug? find out the answer when "options action" returns. >> time for pump up the volume, names that were heating up this week. this pharmaceutical player focuses on treating diabetes and the stock is through the roof. bristol-myers squibb wants to buy the company out and they flaired up the call volume, betting a bidding war will give them a shot in the arm? who is it? the answer when "options action" returns. >>> where are options traders pumping up the volume? amalyn farther suit calls. call volume was almost 17 times the average daily volume. >> time now for total recall where we look back on the trade that is neither winning or losing. taking aim at microsoft with a bearish trade after working out and the stock moved against him. he limited his losses and here's how. >> on "options action," just because you risk less doesn't mean you will make more. unfortunately that's what happened with dan's bearish trade on microsoft. he thought share

plus, the investors you should bet with and against. we're running down the winners and losers, next. >>> 15 minutes of fame? we can't promise that, but what about 15 seconds on "fast money"? go to tout.com/cnbcfastmoney and submit a video question for the traders. we'll play the best questions on air. download the tout app to your smartphone or submit from your computer. #askfast. looking for a better place to put your cash? here's one you may not have thought of: fidelity. now you don't have to go to a bank to get the things you want from a bank. like no-fee atms -- all over the world. free checkwriting and mobile deposits. now, depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity. i'm here to unleash my inner cowboy. instead i got heartburn. [ horse neighs ] hold up partner. prilosec isn't for fast relief. try alka-seltze

we know bet want to more time with their children. their word domestically competent than they were given credit. they were more determined to spend time with their kids. i love my dad but i want to be around. this enables them to the with their children and they were very happy with that. that was a positive outcome and why these guys were very supportive and perceived the benefit but to we know the recession eliminated the changes because three-quarters of those people who lost jobs were been. factory and construction and some of those will come back. we don't give when did credit they gave a lot of households afloat. maybe not during the depression when the women were not supposed to be the work force. one thing that kept the recession from the depression because women kept to the household buffalo nurses coming teachers or to a lower paying jobs. we know when bid -- men lose their job they are more likely to leave. then will hang him longer than with men but the study shows when they cannot be the provider of the impact is so grea

they're betting on.you're gonna bet on the outcome of the super bowl, you're gonna bet on the outcome of a horse race, or you're at the craps table or you're betting on which way the dice are gonna go. >> i'm pretty confident that the housing market's not going to down at all. it's just going to go up. >> within a decade, you have the most phenomenal machine anybody's ever seen. >> new homes are selling at the second highest rate on record. >> we are in a housing boom. it's quite strong right now and housing prices are going up at a rapid rate. >> ...profit soared at 93%... >> ...expected to dole out $36 billion in bonuses this year. >> everyone was high-fiving. it seemed to be brilliant. the combination of free markets, innovation and globalization appeared to have delivered this incredibly heady cocktail of tremendous growth. >> top executives will earn as much as $20 to $50 million.,, >> narrator: between 2003 and 2006, dick kovacevich, ceo of wells fargo, remembers attending meetings with bankers and

would i take a bet that pays me 2% or a bet that pays me 20%.et to keep the proceeds, of course i'll make the 20% bet. and those will collapse because they're too risky. 50% of our economy is tied to five banks. soso is there any hope? you don't have to confirm this for me. i know, the republicans are 100% sold out but as i look at it the democrats are not that much better. where is the hope. >> in is the problem exactly. the bankers have money to put into political campaigns, and some people in the democratic party, including the people in charge r receptive to that money. as an election issue, i don't think the banks are going to play well because neither side at this point wants meaningful reform. >> simon, you said there was lack of leadership in the treasury at the white house. totally agreed and probably an understatement from my sense of this. president obama--i know what happens if romney is elected 20% tax cut for the rich. the banks get larger. it's a guaranteed collapse etc. i know that for a fact. president obama gets re-elected. any

the moves you're seeing are all bets on a very big business.ig business of iphones and the big business of mac computers and so on and the ipads and that's essentially what people are pushing this thing around with. you can take advantage of it, though. this thing is now trading with more than twice the volatility of the nasdaq, which is pretty surprising when you consider how stable the growth has been in this business. so one of the things you can certainly do if you happen to own this stock, you could look to sell some calls and take advantage of the fact that options premiums are being elevated by a lot of speculative bets here. there's over 2 million open interest on the call side. most of this is buying. and now you can sell the july calls for more than 5% of the stock price. that improves your yield on a stand still basis. you still have an opportunity if you do get called away at 620. 653, the premium you collect, that's actually higher than the all-time high in the stock already. that's a good way to try to take advantage of the fact t

i want to bet on you. i will be your jeopardy cheerleader.d. 65 in denver, colorado. happy birthday. >> kimberly: happy birthday. >> dana: at the end of one more thing, greg will put on the back pack to show all of it to you. >> kimberly: project runway. not. go ahead. >> eric: ready for your head to explode. vacation in chief. you can't make this up. this is from over the weekend. watch. >> the beautiful city of cartegena. having a wonderful time. usually when i take the summit trips part of my job is scout out where i may want to bring michelle back later for vacation. we'll make sure to come back sometime in the near future. >> kimberly: oh, boy. >> eric: really. >> kimberly: don't stay at that he help. >> dana: how much you want to bet they never go to cartegena for vacation. >> eric: i bet they will. four times on our dime. >> kimberly: go ahead. >> bob: i will bet on dana perino, too. before in 2009 that people who paid taxes 1,500 multimillionaires who made that multimillion of dollars in 2008 paid, let's take a look at what they paid

. >> i bet she speaks japanese better than i do. my kids might not me. >> when i had the gun i knew there was a [inaudible] and i started writing down things and i thought in my mind's eye, i think it looks like this. and it would be like that i had a small village in mind. there was a part in time i thought, i could go back to japan and go there and see how it looked. i had in the book and in my heart what i thought it was, i almost knew that if i had gone back it wouldn't be the same. so i made the conscious choice of not going. now that you tell me this i'm thankful i didn't i think it would have destroyed what i created in my head. i thought places are best when they are imagined. i hesitated naming it after a place where my mom said what did exist. i'm glad i didn't go back. making that conscious choice would have changed had i gone back would have changed the direction of the book a lot. >> when i saw it it was so different than how an imagined from reading your books. >> does that teach you never to look up things. always lis

i bet you could.it hard now to sit and watch the games and analyze it and not let the competitive juices start to flow and want to dive out there and play. >> it's fun. i try to make people laugh. i try to be like you when i'm on tv. i try to.... >> jon: i've always felt that i've been a role model for you. >> you have. i try to.... >> jon: do you have any idea... if i could dunk once, i would give it all up. because my son now, he very much... first of all he's a huge fan of yours. he loves basketball. he's saying to me i would love to be a professional basketball player. i don't know at what age do i break to him that he's jewish? like i don't know. how do you even say that? >> well, when you see him tonight, tell him uncle shaq says (speaking yiddish). tell him that. >> jon: nice. >> and then tell them (speaking yiddish) and then tell him that he can make it. he can make it. >> jon: i am going to tell him that. i'm going to encourage him. it's always great to see you. you're a good man. who is maki

we know you are betting on the consumer. you are betting on america. with that in mind, if you got to narrow it down as much as you can for us and our audience, what areas are you investing in right now? >> well, as you already mentioned, brian, we're leaning towards the u.s. and we're leaning towards equities at the margin. specifically reits. the real estate sector. it's consumer driven. the numbers today notwithstanding, it's a harbin jer of better things to come. it's definitely a bet on the recovery over the longer term and a bet on america. >> what kind of reits? >> well, we have several funds that span the globe. we have domestic and global versions. so they're well diversified for the average investor. all highly ranked. but the sector is going to be driven by three different factors. low interest rates, low mortgage rates, positive for the sector. favorable valuations which continue to this day based on nonunreasonable expectations of earnings and funds from operations. and last but not least, an improving economic outlook, at least domestical

i just want to bet, and by the way you can only bet that the price will go up. you can't bet that it will go down. >> the losers of that bet are the american people? >> the loser and they are con tenuously told it is a supply demand problem when the people responsible for the oil markets, exxonmobil, the ceo says 60 to $70 a barrel. it is 105, 110 now. the saudi king says, you're worried about the blocking the straits of hormuz? we'll make a barrel for barrel everything that will be lost. by the way, in 1973 when opec cut off the west from all its oil, worse than the blockage of the straits of hormuz, there was a fraction of the volatility we're seeing today. i can give you charts to show that. in april of 2011 it was the arab spring. libya with 2% production of oil is causing this spike and saudis said again, we'll make up the 2%. president said this is not supply demand. this is market manipulation and he was right. so, and the final thing i would say is, what are you stopping here? are you stopping money from going into production? are you stopping money from

they are betting on the price future date and time. speculators, bill, play a very important role for the market and for you and i as a consumer, for businesses, whether they're the end user. >> bill: what's the role? how are they important? >> speculators provide leg at this. if you don't know what that is at home. if you go out to sell a car, you are going to hope that there is more buyers for that car rather than one or two because you get a better price for that car. the speculators improve price. >> bill: what's the oil companies see the speculators bidding up the price of oil they tack it on at the gas station. all right? so the price of oil goes up for not supply and demand. it goes up because speculators are betting it's going to go up. and that goes bang, right into the gas tank and right into the pockets of the american consumer. am i correct there? eric, am i correct. >> you are right. yes. >> bill: that's what happens, right? then when oil speculation goes down, when they are betting on the price to fall, oil companies don'

i have a game i bet on a game. >> i bet 100,000 on ohio for the first half.rough. >> what do you think about all of this, about floyd's public image and the $100,000 bets on games. >> he has what he has. he worked for that. he can do whatever he wants. >> he does work for it. and for all of the stuff he talks his message is always hard work. how do you beat a guy who's not only as talented as floyd is but seems to work harder than everybody else? >> working harder than him. >> do you get the sense that he is working harder than you? >> i don't think miguel cotta is at this level by not working hard and dedicating himself to his craft. i mean, is he a future hall of famer, absolutely. may 5th we are going to get the fans excitement, what they want to see. they want to see two of the best fighters of this era meeting in a square circle and giving them what they want to see, excitement. it is all about excitement at the end of the day. every time a local business opens its doors or creates another laptop bag or hires another employee, it's not just good for busi

last month, a bullish bet on lion's gate that turned time to money and put cash in their pockets. how did they do it? find out when "options action" returns. >>> time for pump up the volume. the name heating up the sizzle index this week. craving something sweet? thinking ice cream or doughnuts, this company can hook up. they are also known for their coffee and tasty plans for global growth. an options traders scarfed down the calls, betting the new deal with coke will make them serious dough? the answer when "options action" returns. >>> where were options traders pumping up the volume this week? dunkin bransds. eight times the average daily volume one time this week. welcome back. you heard how options and dunkin brands very active. what did you make of the activity? most of this on wednesday. a lot of buying in the april 30 calls. dunkin, a new deal with coke and people wondering if that won't help their business if there's not more to the story. >> time for the upside call. take a look back at winning trades. everyone knows about the smashing success of "the hunger games." peo

i bet you we could make a bet here that katie will lose that ratings race tomorrow to sarah palin and will, last time you were betting you bet that rick perry will be the president of the united states. i don't know if you want to take that bet. >> there is no tape of that. there is no tape of that. she is charming. she can do high brow, low brow, she is attractive. she will be great on the today show, i would say better as a vice presidential candidate. >> dana? >> i think katie couric is going to lose the ratings game just like she lost the ratings game the last anchor job and the reason she is hop scotching around. i think sarah palin is going to best her yet and this is the real war on women right here, the war on palin, the war on people like rebecca clayfish, and that's exactly what it is tax reform. i will be watching sarah palin to tune in to see how she does and i agree with will. she is versatile. you can hold her own and co-host and i was waiting for matt lauer to ask something like that, and he did not disappoint. >> he did not. time for the buzzer beater. 20 seconds each.

they had a synthetic bet they would fail. the european commission said stop. >> but if they had lent the money, there would be legitimate -- >> they would not let the money -- >> in trouble interest would have hedged -- >> that is exactly right, and god knows how this happened. insurance commissioners were meeting in florida to say that credit default swaps are insurance and they are injuring somebody else's risk. since 18 06, when parliament said you cannot do that because people are insuring cargoes on british ships and calling the french navy to bomb the ships and collect insurance, they put a stop to that . suddenly, within dodd-frank, god knows how it happened, state insurance law was preempted. >> should we go back to that, where we insist upon insurable interest? >> yes, we should, but what i would do is consider what the european union did on that front as well, and what i telling you is that the gambling on whether greece will fall, without lending money to greece, is not a productive investment. it is a destructive

i think most people are willing to bet on that. and i think because of our reserve currency status, and because they think we will get our act together, winston churchill once said the americans can be counted upon to do the right thing, only after they have exhausted all other possibilities. and i think we're getting to that moment. so i think we're the safe bet. and i think we're going to fix this thing. but i believe we have to get through an election to do it. >> let's talk about some of the specifics. your plan relies on closing loopholes, eliminating tax expenditures. you've been unwilling to talk about which ones. you're leaving that to ways and means. break that mold here. there's 200 of them. give us one or two. >> so what we want to do is have open hearings about which ones are worth keeping, which ones aren't. breaking the mold, what i would say is, in addition to talking about what tax expenditures are there, we should also talk about who gets them. and that's where i think we should focus on. who gets them. if we want

they had a synthetic bet they would fail.he european commission said stop. >> but if they had lent the money, there would be legitimate -- >> they would not let the money -- >> in trouble interest would have hedged -- >> that is exactly right, and god knows how this happened. insurance commissioners were meeting in florida to say that credit default swaps are insurance and they are injuring somebody else's risk. since 18 06, when parliament said you cannot do that because people are insuring cargoes on british ships and calling the french navy to bomb the ships and collect insurance, they put a stop to that. suddenly, within dodd-frank, god knows how it happened, state insurance law was preempted. >> should we go back to that, where we insist upon insurable interest? >> yes, we should, but what i would do is consider what the european union did on that front as well, and what i telling you is that the gambling on whether greece will fall, without lending money to greece, is not a productive investment. it is a destructive inv

to bet bottom line with this. we can argue this all day, but what do you think is the reality there of qe-3? can you put odds on it? 20%, 70%, what are the odds? >> it's above 10% but it's probably less than 1/3. part of me wants to say is there going to be a recession? the answer in my mind is no. that of course there is some probability of recession at any time. but the second part is well, this fed does tend to surprise. here's the third part which i think people tend to ignore is operationally can they do it? do they have enough treasuries to buy? do they have enough mortgage backed securities to buy? no one asks those questions if they're not omnipotent. what can they do, how can they do it and do they have the information to move forward? >> one reason people are speculating they could happen with mortgage backed securities. but, again, looking for any detail on that, steve, in the minutes you didn't see anything about that. >> no. >> and constrained on mortgage backed securities. not like there's a lot left