Higher Oil: Trading From Many Angles

Oil crossed $100 for the first time in 28-months on Wednesday and the Fast Money traders were all over the move.

Find out how to play the move from every angle.

HIGHER OIL: THE MAJORS

With crude hitting $100 on Wednesday, some of the best performers were the integrated oil companies such as Exxon and Chevron. ”I like Exxon ,” says JJ Kinahan. “I think the company is solid no matter what happens in the Middle East. And I’d be careful of a firm like Noble Energy which has said their business could be disrupted in a big way.”

On a related note, Karen Finerman is bullish Canadian Oil Sands largely because there’s no geo-political risk in Canada.

And for you contrarians out there, Kinahan adds that he would not go short right now. “I would never sell a commodity that is rising. The risk is that oil could be up $20 but even if there’s peace I don’t think oil drops $20.”

Tim Seymour agrees. “The way to trade commodities is buy when they’re expensive.”

Trader Joe Terranova concurs. “Energy equity names are a classic case of buy higher and sell higher,” he says on the Halftime Report.

Hear from Deutsche analyst Paul Sankey. Watch the video now!

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HIGHER OIL: THE MARKET

Higher oil sent investors running for the exits, with the S&P dropping for a second straight session on Wednesday; chatter suggests the selling may continue in the days ahead.

The S&P 500 has climbed nearly 25 percent since the start of September and many analysts have said a short-term correction is likely.

However, the benchmark index recovered from hitting an intraday low of 1,299.55 during the session. Analysts eyed support at 1,296, the mid-January highs and also 1,286, the 50-day moving average.

What should you expect?

JJ Kinahan feels 1275 is a key technical level and tells the desk, "I think we test that level."

Jon Najarian is more optimistic. He feels the bounce off the lows mentioned above may be a bullish 'tell.'

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HIGHER OIL: GRAINS

Higher oil generated an aversion to risk, which dragged down the grains and related trades.

However, Brian Kelly thinks soft ags remain in play. "People still have to eat," he says. Kelly has CF Industries and Mosaic on his radar. And he adds, he might go directly into corn and wheat

" Mosaic and Monsanto are two names in this space that I particularly like," adds JJ Kinahan.

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HIGHER OIL: ALTERNATIVE ENERGY

Higher oil renewed interest in alternative energy with Tim Seymour reminding the desk that we don’t know if unrest in the Middle East will last 2 days, 2 months or 2 years.

As a result he says alternative energy is in play and suggests investors look at solar names and nuclear names.

”I sold out of my position in my solar stocks,” counters Brian Kelly, “ but that’s primarily because of Italy’s exposure to Libya.” However he agrees that alternative energy is in play.

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Trader disclosure: On Feb 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (FXI); Seymour owns (INTC); Seymour owns (STP); Seymour owns (TSL); Kinahan owns (BAC); Kinahan owns (C), is short (C) calls; Kinahan owns (CSCO); Kinahan owns (F); Kinahan owns (GE); Kinahan owns (MSFT) puts; Kinahan owns (NFLX) puts; Kinahan owns (WFC); Kinahan owns (YHOO); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's firm is short (XRT); Finerman's firm is short (IJR); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman's firm owns (FCX) puts; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's Firm Owns (M); Finerman's Firm And Finerman Own (MSFT)’ Finerman's Firm Owns (WMT); Jon Najarian owns (CHK), is short (CHK) calls; Jon Najarian owns (DTV), is short (DTV) calls; Jon Najarian owns (BP), is short (BP) calls;’ Jon Najarian owns (NBR), is short (NBR) calls; Jon Najarian owns (KWK), is short (KWK) calls; Jon Najarian owns (HPQ); Jon Najarian owns (MOS), is short (MOS) calls; Jon Najarian owns (ATML), is short (ATML) calls; Jon Najarian owns (LLTC), is short (LLTC) calls

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