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Options Action: CSX

With rail traffic slowly improving should you hop on CSX ahead of earnings Monday?

Options activity suggests about a 6% move ahead of Monday’s earnings, in either direction. Mike Khouw of Cantor Fitzgerald, however, suggests the following bullish play:



Sell the August $47 puts in CSX and collect $2.25.

Learn more about this trade. Watch the video now.


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Trader disclosure: On July 7, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; inerman and Finerman’s Firm owns (AAPL); Finerman’s Firm owns (AEO); Finermans’ Firm owns (ANF); Finerman’s Firm owns (BAC) stock and calls; Finerman and Finerman’s Firm own (BAC) preferred; Finerman and Finerman’s Firm owns (BBY); Finerman owns (BP) calls; Finerman and Finerman’s Firm owns (C); Finerman and Finerman’s Firm own (CVS); Finerman owns (GLW); Finerman & Finerman’s Firm owns (GOOG); Finerman & Finerman’s Firm owns (HPQ); Finerman & Finerman’s Firm owns (IBM); Finerman & Finerman’s Firm owns (JPM) stock & calls ; Finerman’s firm owns (PM); Finerman’s Firm owns (RIG); Finerman’s Firm owns (TGT); Finerman’s Firm owns (WMT); Finerman’s Firm is short (IJR); Finerman’s Firm is short (IWM); Finerman’s Firm is short (MOY); Finerman’s Firm is short (SPY); Kelly Owns (BP) Puts; Kelly Is Short (GS);Terranova Owns (BAC), (MRVL), (MYL), (MON), (APC), (GMCR), (AXP), (TER), (XCO), (GOOG), (AMZN), (GS), (CVS), (ABT), (HES), (ADI), (ADBE), (AKAM), (EMC); Seymour owns (AAPL), (BAC), (GOOG), (INTC), (POT), (WBD); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck

For Joe Terranova:
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Brian Kelly:
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own Treasuries
Accounts managed by Kanundrum Capital own US Dollars
Accounts managed by Kanundrum Capital ARE short (AMZN)
Accounts Managed By Kanundrum Capital Are Short (BCS)
Accounts managed by Kanundrum Capital ARE short (RCL)
Accounts managed by Kanundrum Capital ARE short (XLY)
Accounts managed by Kanundrum Capital ARE short (XLE)
Accounts managed by Kanundrum Capital ARE short (AFL)
Accounts managed by Kanundrum Capital ARE short (CME)
Accounts managed by Kanundrum Capital ARE short (EWI)
Accounts managed by Kanundrum Capital ARE short (EWO)
Accounts managed by Kanundrum Capital ARE short (GS)
Accounts managed by Kanundrum Capital ARE short (HIG)
Accounts managed by Kanundrum Capital ARE short (RKH)
Accounts managed by Kanundrum Capital ARE short (XLF)
Accounts managed by Kanundrum Capital ARE short (XLI)
Accounts managed by Kanundrum Capital ARE short (FCX)
Accounts managed by Kanundrum Capital ARE short (GFI)
Accounts managed by Kanundrum Capital ARE short (JOYG)
Accounts managed by Kanundrum Capital ARE short (XLB)
Accounts managed by Kanundrum Capital ARE short (XLK)
Accounts managed by Kanundrum Capital ARE short (V)
Accounts managed by Kanundrum Capital ARE short (PCAR)
Accounts managed by Kanundrum Capital ARE short (COF)
Accounts managed by Kanundrum Capital ARE short (KMX)

Doug Kass
**No Disclosures**

Gary Shilling
**No Disclosures**

Rob Samuels
**No Disclosures**

Heather Bellini
**No Disclosures**

Mike Khouw
Cantor Fitzgerald makes a market in (CSX)



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