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Options Action: Bullish Energy

Will a new quarter revive the energy trade? Is it time to load up on these names with oil above $82?

Let's peer into the options market's crystal ball for our answer.

Mike Khouw of Cantor Fitzgerald suggests the following strategy:

June risk reversal in XLE
Buy June 59 calls for $1.65
Sell June 55 puts for $1.85
Collect 20 cents

How Khouw’s trade makes money
Get long above $59, profits above $58.80
Losses below $54.80

Find out more about this trade. Watch the video now!




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Trader disclosure: On March 29th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (YUM) Calls; Najarian Owns (CAT) Calls; Najarian Owns (WFR) Calls; Najarian Owns (TIE) Calls; Nations Owns (SPY); Scaramucci Owns (AAPL); Scaramucci And Skybridge Own (BAC); Scaramucci And Skybridge Own (C); Scaramucci Owns (MS); Scaramucci Owns (MSFT); Scaramucci Is Long U.S. Dollar; Najarian Owns (CLF) Call Spread; Najarian Owns (F) Calls; Najarian Owns (RDC) Calls; Najarian Owns (RRC) Call Spread; Najarian Owns (SWN) Call Spread; Najarian Owns (YHOO) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC); Finerman's Firm And Finemran Own (GGP); Finerman Owns (GOOG); Finerman's Firm Owns (IBM), (MCD), (PDE), (RIG); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Is Short (GS), (CAL), (UAUA); Terranova Is Long Crude Oil Futures (May 2010); Terranova Works For (VRTS)

For Joe Terranova
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Brian Kelly
Kanundrum Capital Owns (SYY)
Kanundrum Capital Owns (PTV)
Kanundrum Capital Owns (PAG)
Kanundrum Capital Owns (TXN)
Kanundrum Capital Owns (IBM)
Kanundrum Capital Owns (S)
Kanundrum Capital Owns (CCI)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (GS)
Kanundrum Capital Is Short (FCX)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short Treasuries
Kanundrum Capital Is Short Copper

For Greg Badishkanian
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed Offering For (MCD), (YUM) In Past 12 Months
Citigroup Global Markets Or Affiliates Has Received Investment Banking Compensation From (MCD), (YUM) In Past 12 Months
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (MCD), (DPZ), (YUM), (BKC) In Past 12 Months
(MCD), (YUM) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(MCD), (YUM), (BKC) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(MCD), (DPZ), (YUM), (BKC) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment-Banking, Non-Securities-Related Services)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (MCD), (YUM)


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