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How to make money on news headlines

Three names in the news offer opportunity if you know how to look at them, Hunting Hill Global Capital CIO Adam Guren said Tuesday

"The 'shock response' is really a post-event trading strategy," he said. "We think some of the best trading opportunities happen when you have unanticipated events disrupt some of the historical relationships in the marketplace. So, generally speaking, you can look at a macroeconomic shock. You can look at a corporate action event. You can look at a merger."

On CNBC's "Fast Money," Guren shared three of the stocks which he was trading on recent news: BlackBerry, Cobalt International and Delta Air Lines.

BlackBerry's recent announcement that it would initiate a "strategic review process" was "nothing new," even though the stock traded to a high of $12.18 per share this week, Guren said, making the case for shorting the stock — via puts at the moment.

(Read more: Buybacks top dividends: Bill Nygren)

"If it does get to the $11 or $11.50 range, we'll probably be outright short the stock, depending on the announcement," he added.

Guren said that he was sure to manage risk "because we know that this is a relatively crowded trade."

(Read more: 'I'd stay the course': Vanguard's Jack Bogle)

"There's 33 percent short interest in this name on the float, so it does get squeezed up, we don't want to be shaken out of this thing, and so we're looking to actually short on those squeezes, like I said, again, around $11.50," he added.

Next, he liked Cobalt international, a deepwater offshore-drilling company that announced a production decline, pushing its stock down 15 percent.

"We think this is overdone," Guren said.

(Read more: Trading a 'summer doldrums pullback')

With coverage by 16 Wall Street analysts and 16 "buy" ratings on the stock, Guren said he would be a buyer around $25 per share.

Lastly, the pending merger between Delta Airlines and United Air Lines posed an unknown factor because of a U.S. Justice Department review.

"This pending merger, we feel like it doesn't necessarily matter for Delta which way the Department of Justice lands, because Delta is set up in a good way. They have a decent business model. There's a secular shift in this industry. It was beat up last week," he said. "We're an owner here."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

— CNBC's Michael Newberg contributed research to this report. Follow him on Twitter: @MikeNewberg.

Trader disclosure: On Aug. 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Grasso is funds long GM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long BBRY; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long HERO; Steve Grasso is long HPQ; Steve Grasso is long MHY; Steve Grasso is long LNG; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Steve Grasso is long ASTM; Steve Grasso is long POT; Steve Grasso is long DECK; Steve Grasso is long DHI; Paul Hickey is long AAPL; Paul Hickey is long BAC; Paul Hickey is long INTC; Paul Hickey is long NFLX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long JCP; Brian Kelly is short US dollar; Brian Kelly is short Nikkei; Brian Kelly is long T-Notes Futures; Brian Kelly is long Canadian Dollar.

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