Some Additional Details that we have learned about whats in it. The repatriation rates are slightly higher than what we had been reporting 8 for liquid assets and 15. 5 for cash previously we had been told the rate would be 15 for cash also, the individual mandate, that repeal will begin in 2019 so a oneyear delay of the repeal of the individual mandate. Also uncarried interest, the threeyear Holding Period that both the house and the senate had proposed will remain first in first out provision that will limit investors choose from when they sell their stock that is out from the final version of the bill. The other headline numbers that we had been reporting are now confirmed. Corporate rate is 21 and that will take effect immediately the top rate for individuals, 37 and that would apply to individuals with income of 500,000 or above or coupled with income of 600,000 or above. Now one of the key changes that republicans made to the bill was to expand the Child Tax Credit and making 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 so before it had been 500,000 theyve ratcheted that back to 400,000 also that Child Tax Credit would now apply only to children who were 17 years who were younger than 17 years of age that is consistent with current law and a little bit less than what rubio had been looking for. Just a quick rundown of some of the deeper dive details of the bill that we are learning here as they become public, melissa back over to you. Ylan, how does the math shake out . Senator rubio moves over and senator corker moves over to the yes column where do the rest shake out . We are still waiting to hear from some of the others, including mike lee who had worked close with mike lee 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 deduction for medical expenses, those are in the bill. She also wanted a vote on Health Care Stabilization legislation this does not look like thats going to happen before the tax bill comes up for a vote next week. Ylan, thank you nbc with a rundown with what is in that tax bill put out by the gop. We saw the rally in todays market the markets are acting as if its over the goal line. Is this something you should buy . Whats remarkable, my own conversations with clients, big mutual funds, half of them, wholly half believe fully in. Fully in . Other are no, its like 60 or 80. The up side related to it. 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 the numbers on eps growth now that we can do this from 2018, im hearing 10 to 18 in terms of eps growth. You have not priced it all in. Probably were at 2 3. I agree. It was nearly a few weeks ago we were saying this was something that was as you get more data, more stuff to model, okay, you can start figuring out what it does to eps growth, you can rerate some sectors, you can start thinking about what that means as it relates to Economic Growth you know, thats the one area. No, no, i dont have any i get it like at the end of the day when you think about it, you can say, okay, so certain sectors should be trading on market multiples, others may see it come in. Then it comes down to what does it mean for Economic Growth, jobs thats the thing that i think is going to be 2018 argument for most of the year. I agree with you. I think at least from the trader point of view you can have a boost to the stock market without necessarily having that boost to the economy right away. Except for the fact that we are eight years into this bull market. Sure. We are in the pretty late stage of the cycle he would are going to have global tightening for the first time you fashion it in 2018. To me, i think all of those factors are going to come into play. The first threequarters of this bull market this was earnings less recovery we were complaining about the Market Expansion if you think about this, this tax bill, lets be very clear, this is all about corporate america. This does not really help the individual in fact, in many cases it hurts them be clear, 21 the repatriation of cash versus liquid is something i think was a little disappointing for many, in fact, i think some guys dont do anything with that 21 makes it thats what makes the rubio posturing so important not only what he did, but for his perspective going forward. Oh, yeah. Getting that Child Tax Credit that he wanted i want to go out to mike before we were showing by sector who could benefit the most from a decrease from the Corporate Tax rate is that where you should invest . Well, look, ithink when we take a look at what the eps impact is, then obviously you could say this deserves a little bit of a boost in that area. I think its important i think dan and kim were touching on this when you take a look at the total Corporate Income tax revenue in the united states, its surprisingly small to a lot of people in the context of a 19 trillion gdp youre talking about 350 billion. How much of that impact actually flows through to the economy broadly . Is it going to be that great i dont factor in any kind of a benefit for that, frankly. Also, to the repatriation side, lets remember that a lot of companies that had significant cash overseas found mechanisms to bring that to the stage i take a look at this, i think we probably 75 baked this into the cake in terms of s p multiples. Bank stocks could be one of the biggest beneficiaries. Lets break this down this group has caught up with the market s ps have lagged all year. Theyre with the market. As a best are you really going to get paid for the rest i just want to start with perspectives from the prior bull market high. In fact, this is starting from the exact prior bull market high october of 2007. If you were simply in the sty versus xlf, this is what you have youve got this if youre in the market, youve got this if you were in financials i mean, that tells a lot in fact, at this point adjusted were not even back to the high. We know that the total market cap of financials are well above, but because of the share dilution if youre sitting here in stock of bank of america or citi, youre not near where one was in the 07 year 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 electional where financials came to light whats happened, financials have trended higher all year and yet theyve made no progress, absolutely dead flat on a relative basis you have generated negative. Are they going to do better going forward. Take a look at regional banks. This is even worse this is exactly election time. We know this is dead flat and the relative point this is the most rate sensitive area of the market within financials is down i think 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 of stock, commodities, basically this is going nowhere. Theres nothing in this chart that i did that suggests any great upset. Lets say it is and im totally wrong, this is some sort of head and shoulders bottom all youre talking about is getting up to 2. 5, 2. 6, really going to 3 this is a problem for financials lets look at the longterm chart back to the peaks when roko was fighting inflation. Here is the trend line what we know is that youre still well within the down trend. Yes, we havent made a new low, thats important in order to validate a new cycle you need to make a new high. You have to get above 34r50ik. 05 i think obviously the taxes and policies are good in the financials they have a burden of very benign environment. Mike, how are you trading the bank i think xlf is the most obvious and its a very liquid and tight market on the options side i think whats interesting, we saw the vix close below 10 that presents an opportunity if you want to buy premium. I was looking at the march 27. You could spend and get 25 cents for that considering if it went all the way through to the 25 strike, im not saying its going to make that kind of a move, youre going to get a payoff of almost five to one on this trade. Thats taking advantage of, number one, the very low premiums out on the put the money havent come inasmuch as the at the money. You take a look at the biggest decisions of xlf jpmorg jpmorgan, fang, other than berkshire hathaway, all are trading at or about the average analyst price markets. These are companies that essential bely are outrunning the people who follow them. I like his trade a lot for a couple of reasons. When it looks like tax was going to be a 2017 thing, the xlf was at 24 in august and went straight to 26 consolidated then it made another move in the last month and a half or so up to 28. Mikes choosing 27 pope pope. 2. You dont need anything as far as rates, tax. You can have a good oldfashioned pull back in the market and this trade offers a really good risk reward. I like the strikes. We are all over the big story. The gop releasing the final version on the tax bill. Representative brady is set to speak outside of his office in just a few moments well bring you the very latest. Much more options action on this very busy night stay tuned. Want more options action its easy. Head to our website optionsaction. Cnbc. Com and sign up for our newsletter. We have more than 100,000 subscribers so what are you waiting for . Thats optionsaction. Cnbc. Com. You traded options. Nt im not really a wall street guy. Whats 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 youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats 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, itsonce again. Eason yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its 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. Thats 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 chaired the house ways and Means Committee is set to speak outside his office lets get to ylan mui with the release of the tax bill. Yl ylan. Reporter the house is planning to vote on the tax bill as soon as tuesday that is what we are hearing with the Senate Voting after that the one number republicans are going to be highlighting is that a medium family making 73,000, their tax cut under their plan according to their analysis will be 2,059. Republicans have been criticized for their tax plan as primarily benefitting the wealthy because of the fact its helping the corporations versus the middle class. You hear them talking about that especially as they use this win as the crown jewel looking forward to 2018. The Median Income on that figure is 70 what,000 . Family of four with 73,000. The tax break will be 2,059 a year. Thats right. So we know theyre going to vote on tuesday. Any fireworks expected there sailing through the senate and counting senators at that point . I think thats a real question mark there had to be the senate the house passes with a very ample margin the most vocal agitators had been Freedom Caucus and conservatives in the house they had been looking for a 20 corporate rate they got half of what they wanted in this bill. 21 but it does start in 2018. I this i theyre going to be pretty happy with what they see here you do know republicans have been briefed on this bill. The Conference Call is either just recently wrapped up, still underway so republican reaction will start trickling out to this, but i do expect that at least in the house this is going to be clear sailing. Ylan mui in d. C we are waiting congressman kevin brady, chair of the house ways and Means Committee to come out and speak. Were going to sneak in a quick break and well be right back. W . 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 youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade well, itsonce again. Eason yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its 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. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from Td Ameritrade. Kevin brady, chair of the house ways and means commens ka speaking outside his office. Lets hear. Were going to have this for families we made the commitment we would improve the bill, and we achieved that we now have a 10,000 deduction for salt 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 salt states, but 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 ] no. Absolutely not that was continuing to lower the brackets, lower the rates, make sure we want people to keep more of what they earn wherever they live, and we achieved that. [ inaudible ] well, obviously timing in the vote is scheduled for our leadership i do know we will be returning monday to begin the rules process. The votes in the house and senate will occur after that the timing ill leave sequence to our speaker and leader and, yes, i do predict both the house and senate will approve this tax reform lots of momentum [ inaudible ] well, i would direct you we will have joint Community Impact well lay out the revenue impacts short live what you will see is there were adjustments made throughout the whole tax reform bill. There wasnt any one or two provisions that allowed us to stay under 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 ] look, i think no, i know everyones 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 over seas which if we had not acted now, we would continue to see our headquarters, our research, our manufacturing and our jobs leave the country so the combination of that will raise paychecks and allow you to keep more of what you earn maybe and this isnt really talked about much, but we need the tax code for our local businesses where they can compete and win anywhere in world, including here at home. We achieved that weve been listening to kevin brady, the chairman of the house ways and Means Committee speaking about the gop tax bill. 20 minutes after the official filing of that bill. What we know now is the house will vote on the bill on tuesday which clears the way for the senate to vote sometime later in the week tim, what do you think of what hes talking about do you think its going to clear . Thats what were here to talk about again, i get back to the Consumer Discretionary or the big box plays and then those that had the highest affected taxes. 39 affected tax rates, totally domestic story these guys do great. Home depot is paying 36 consumer play, if you think the mortgage reduction isnt the big deal, they are the biggest beneficiaries. Theres a dow stock that is about to take off and well tell you how high it could go much more options action right after this t guy. Whats 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 youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade well, itsonce again. Eason yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its 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. Thats 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 check out some of the big players in the space breaking out in the last six months micron is up whopping 26 . Fan has been hot on the space. Looking for bigger breakouts ive been hot on intel for a whole host of reasons. The stock has had a massive rally. I think some of the fundamental moves the company has been making over the last two years are kind of paying off look at that oneyear chart it has the massive breakout after q3 earnings. It helped. We have a fiveyear chart. Look at this epic breakout that its just kind of embarked on here maybe theres a little bit more room to the down side. A gap fill, that sort of thing look at the 20 year chart here what is our loui say this thing has got support down 5, 10 you want to be long in it. To me in the near term you want to set up with a shortterm call calendar you want to finance the longer dated calls. Today when the stock was trading at 44. 60 you can sell one of the january calls for 47 cents you can buy one of the february 47 calls for 80 cents. That call calendar costs you 50 cents. Im selling the january to buy the february because january options will not catch their q4 earnings on january 25th feb will i like this a calendar for the way to get long. Mike, quickly, what do you think of the trade do you like it first of all, i definitely like calendars 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. Thats the idea. I think this is a good trade. Quickly, carter, how did the stocks look . Did you see the charts . Its amazing great lines. Breakouts real. Gap is real. Check back is real let it rip. Uconn kuyou conquercer. Near term could it come back to that . Could it build that gap . Thats why im trying to finance the longer dated calls i like calendars were going into the holiday period where things should settle down. Thats why im selling january 47 thats the prior resistance it could come up there and stay there. Thats what i wanted to do is inch forward. Time for the final call last word from the options pit mike, out to you first. Financials are going to pull back a bit the march 27. 25 put spread looks good. Dan i like the xlf trade. I like figuring out ways to get long intel. Carter . Xlf, the problem is rates i do not believe are going very fast. Sam, thanks for sticking around. Special day for america on the tax bill sad day for options action and fast money. One of the best pages weve had. We get all of these wonderful, wonderful talented kids. Ariel jao is leaving us. Shes done yeo womans work. Congratulations our time has expired more options action next friday mad money is right now [narrator] the following is a paid advertisement for the 3 week yoga retreat. Brought to you by beachbody. Are you a woman of a certain age . If you are, pull up a chair and sit with me, because this is for you. Im Leeza Gibbons and it was a big year for me, i turned 60, and im all about aging gracefully with empowerment, and all of that, but lets be real, there are some parts about getting older that are just hard. All the symptoms of menopause from a to z, i have them. My body is changing. Im not as flexible as i used to be