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UPDATE Halftime Pt.1: BP Looking To Jettison CEO Hayward?

Friday, 18 Jun 2010 | 5:00 PM ET

* This post was updated Friday 6/18 at 5pm with a response from BP to reports published by Sky News that Tony Hayward was removed from overseeing day to day operations in the Gulf. When CNBC called BP to verify we got this reply:

"This is not news. Two weeks ago on the BP investor call, they announced they'd be forming a new entity, led by Bob Dudley, to oversee all aspects of the spill response."

Read more about these developements. Click here for "About Those Tony Hayward Headlines"

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Original post
Investors remained focused on BP Friday with the oil company dominating headlines, once again.

In late developments, Britain's Skynews reported that BP's chairman Carl-Henric Svanberg has removed CEO Tony Hayward from overseeing day to day operations in the Gulf of Mexico.

"It is clear Tony has made remarks that have upset people," the chairman said to Skynews.

One day earlier Hayward was grilled by Congress and quickly drew the ire of US lawmakers with responses that seemed rather cool and aloof.

Is BP looking to jettison Hayward? What must you know before you place your next bet on energy?

Has BP Bottomed?
Investors continue to focus on BP as it dominates headlines, with the Fast Money crew.

Instant Insights with the Fast Money traders

It seems to me this is the first step toward Tony Hayward handing off a lot of other things as well, speculates Brian Kelly. I wouldn't be surprised to see more news comes out of BP.

If investors can be patient I think those who can buy and hold, like Whitney Tilson of T2 - will make a lot of money, says widely followed investor Doug Kass.

If you see current levels in BP as an opportunity, there's no reason not to also buy some puts for protection, adds Jon Najarian. Volatility has come down dramatically in BP; it was north of 130 and now is at 67.

If you're looking elsewhere in the space, you may have noticed oil rig stocks are making gains broadly, adds Steve Grasso. But I still think there’s a great deal of headline risk in the space. I’d expect to see more companies called before Congress to testify about the oil spill.

I agree that other companies will be called to Congress, adds Patty Edwards. If you’re bullish oil due to these developments, I’d play it other ways. For example, if you think oil prices are going higher -- instead of getting long the oil services stocks -- I'd get short the consumer.

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EAR TO THE WALL: ANADARKO TAKEOVER TALK

On Friday, speculation was swirling on Wall Street that Anadarko may be in takeover talks partly due to unusual options activity.

But Jon Najarian says otherwise.

He explains that all the unusual activity is in the June options and if takeover chatter were true the activity would be farther out.

CNBC called Anadarko but the company had no comment.

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S&P – TECHNICALLY SPEAKING

The S&P traded higher Friday with bulls hoping for back-to-back weekly gains.

Looking at the techincals, the S&P 500 has held above its 200-day simple moving average since Tuesday - a bullish signal.

However, the S&P runs into resistance between 1115-1120, a key technical level that marks the halfway point between the October 2007 historic highs and the lows of March 2009.

How should you trade?

I’ve been on the floor for 16 years and I’ve never seen such a one-sided move in the market, says Steve Grasso. Every time we approach 1115 we kiss it and then we back off. To make matters worse volume is very light. I just can’t feel bullish, broadly.

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GOLD HITS RECORD THIS WEEK

Despite the move higher in the markets this week, the flight to safety trade also worked with gold making new records.

What should you make of it?

There are pockets of strength in this market and pockets of weakness, explains Brian Kelly. So whether we’re looking at inflation or deflation, gold remains attractive.

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APPLE HITS ALL TIME HIGH THIS WEEK

This week is one for the record books as far as Apple investors are concerned. The stock hit a new lifetime high on Thursday.

Despite the lofty levels Cowen upgraded the tech titan to ‘Outperform’ saying it expects shares have about 20% more upside.

What’s the trade?

I’m long Apple, reveals Patty Edwards, but it’s a long-term trade.

I’d play it with a bull call spread, reveals Jon Najarian. But I think the stock is heading to $300.

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CALL THE CLOSE: VOLATILE AFTERNOON?

Investors braced for volatility into the close Friday largely due to quadruple witching. A market event that happens 4 times a year - the third Friday at the end of each quarter – quadruple witching simply refers to the simultaneous expiration of four different financial vehicles at the same time 1) equity options 2) stock index futures 3) stock index options and 4) single stock futures.

How will the market close?

Brian Kelly: With quadruple witching I’d stay away.
Jon Najarian: I think the market goes higher into the close.
Steve Grasso: I think the market can squeeze higher but I think the market overall is going lower.

Read More:

> Jared Levy of Peak 6 wrote a great explanation of quadruple witching on the website optionshouse. Click here to check it out.


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Trader disclosure: On June 17, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly is short (GS); Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ); Grasso owns (ABK); Grasso owns (BAC); Grasso owns (BGP); Grasso owns (C); Grasso owns (DYN); Grasso owns (JPM); Grasso owns (LPX); Grasso owns (NDAQ); Grasso owns (PRST); Jon Najarian owns (NYX) and seats on the exchange; Jon Najarian owns (CME) and seats on the exchange; Jon Najarian owns (CBOE) and seats on the exchange; Jon Najarian owns (RIG) and is short call options; Jon Najarian owns (COP) and is short call options; Jon Najarian owns (DO) and is short call options; Jon Najarian owns (BAC) and is short call options; Jon Najarian owns (JPM) and is short call options; Jon Najarian owns (GS) and is short call options; Jon Najarian owns (MS) and is short call options; Jon Najarian owns (CLH) and is short call options

For Patty Edwards
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Edwards owns silver for clients
Edwards owns the Russell 2000 for clients
Edwards owns the S&P500 for clients

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (GERN)
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Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
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Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)




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