Options Action: Coal, Hotels

Wednesday, 4 Jun 2008 | 6:52 PM ET

Unusual options action caught our attention on Wednesday. Find out what’s moving and how you should trade!

Stacey Gilbert, market strategist at Susquehanna Financial Group joins the panel for this conversation. Following is a synopsis of her main points.


A large volume of call buying suggests to Gilbert that Peabody could soon go higher. Specifically she thinks options investors are betting on a 20% upside before July.

Other names in the space that Gilbert finds compelling include Alpha Natural Resources and Massey Energy.

I also like Alpha Natural Resources, adds Pete Najarian


Separately, Stacey Gilbert is seeing intriguing call buying on Starwood that suggests to her that the company may be the subject of the a possible takeover.

Options Action: Coal
The options market has been very bullish for coal names, with Stacey Gilbert, Susquehanna Financial Group market strategist, and the Fast Money team.

Also keep an eye on Marriott , adds Pete Najarian.

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Trader disclosure: On June 4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (HAS), (INTC), (MSFT), (DIS); Adami Owns (BTU), (C), (AGU), (GS), (INTC), (MSFT), (NUE); Najarian Owns (AAPL), (ANR), (BHI), (CHK), (HPQ), (TSO), (XLF); Najarian Owns (LEH) Puts; Finerman Owns (GS); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (AAPL), (MSFT), (NYX), (SUN), (TSO), (VLO), (UFS) Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY)

Susquehanna Capital Group Is A Market Maker In (ANR), (BTU), (CNX), (JRCC), (ICO), (MEE), (HOT), (SNCR), (AAPL)

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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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