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Despite what you’ve heard, the public option might not be off the table after all.

On Friday House Speaker Nancy Pelosi said that although details are still under discussion, “At the end of the day we will have a public option" in the House bill.”

And Pelosi went on to say the Senate might also include a public option in its final bill. As you may know, both the Senate and the House have approved multiple health reform bills that must now be molded into a final bill that can be approved by each chamber. The two bills will then have to be reconciled for final adoption.

According to a Reuters report, the public insurance option would be available in a government-sponsored marketplace for small businesses and people who do not get insurance through their employers.

What’s the trade?

The rhetoric generates uncertainty, explains Joe Terranova and as a result I think the health care space is under-invested. Personally, I'd play it with a  long position in Cigna [CI  Loading...      ()   ].

I have calls on Aetna [AET  Loading...      ()   ], UNH [UNH  Loading...      ()   ] and WellPoint [WLP  Loading...      ()   ], adds Karen Finerman..

I’d look at Medco [MHS  Loading...      ()   ] or Express Scripts [ESRX  Loading...      ()   ], which should benefit no matter what the outcome, adds Gary Kaminsky, if only because more people will have access to health care.

The Fast Money traders spoke with Rep Paul Ryan (R-WI) about the latest GOP perspectives on reform. To hear what he has to say, watch the video now!

--------

Meanwhile, Wall Street is also closely watching moves made by the Obama administration concerning banker pay cuts.

Earlier in the week the Treasury outlined plans for the seven companies that have not paid back TARP money to make deep cuts to their top executives' compensation.

They are Bank of America [BAC  Loading...      ()   ] , American International Group [AIG  Loading...      ()   ], Citigroup [C  Loading...      ()   ], General Motors, GMAC [GMA  Loading...      ()   ] , Chrysler and Chrysler Financial.

Companies that have repaid the bailout money, including Goldman Sachs [GS  Loading...      ()   ] and JPMorgan [JPM  Loading...      ()   ], are not affected.

The cuts apply to the 25 highest-paid executives, and according to published reports, their total compensation, including salaries and bonuses, will be cut



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CNBC.com with wires

© 2009 CNBC.com

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