GO
Loading...

Jon Najarian: Bullish Options Activity In This Coal Name

While most coal names were in the red on Tuesday, options trader Jon Najarian spotted some bullish activity in Patriot Coal.

In early trading, Najarian said someone bought roughly 6,000 Apr. 26 calls, which is equivalent to 600,000 shares of Patriot Coal . The person sold the Apr. 30 calls against it. With the stock currently trading just north of $24 a share, this is a four point call spread.

"This is a bullish trade that makes money as we climb towards and through $26," Najarian explained. "Somebody thinks we can do that in as little as two months."

Najarian himself is bullish on Patriot Coal and the coal space in general. He's long PCX.

Joe Terranova, chief market strategist at Virtus Investment Partners, thinks coal is a short-term answer to rising energy prices. He likes Peabody Energy .

---
TRADING FINANCIALS

Expect stronger earnings for U.S. banks this year, banking analyst Gerard Cassidy of RBC Capital Markets said Tuesday. He expects credit improvement will positively impact U.S. banks across the board.

So what's Cassidy's top picks in the banking industry? Bank of America and JPMorgan Chase , he said. Both financial institutions are likely to benefit from a stronger U.S. economy, improved credit metrics and increased loan demand.

Watch the video to see the full conversation with Cassidy on banks.

---
POPS & DROPS

The "Fast Money" traders on Tuesday discussed several market movers that caught their eye by midday trading. Watch the video to see which stocks popped and which dropped.

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Mar. 8, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova owns (VRTS), (C), (UPL), (ABT), (MS), (PBR), (BAX), (TEVA), (CVI), (RSX), (SU), (CNQ), (JPM), (PNC), (GS) and (USB). Steve Cortes owns (EXC) and (PM). Steve Cortes owns (SDY) VS. S&P Long. Steve Cortes is long Crude. Steve Cortes is long the U.S. Dollar. Steve Cortes is short (MOS). Steve Cortes is short (C). Steve Cortes is short Wheat. Steve Cortes is short Corn. Jon Najarian owns (CME), is short (CME) calls. Jon Najarian owns (CBOE), is short (CBOE) calls. Jon Najarian owns (NYX), is short (NYX) calls. Jon Najarian owns (AMD), is short (AMD) calls. Jon Najarian owns (BRCM), is short (BRCM) calls. Jon Najarian owns (HPQ), is short (HPQ) calls. Jon Najarian owns (BSFT), is short (BSFT) calls. Jon Najarian owns (IBM), is short (IBM) calls. Jon Najarian owns (PCX), is short (PCX) calls.

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC

JOE TERRANOVA
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
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 (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
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 (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
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 (DOM)

PATTY EDWARDS
Edwards owns (SPY) for clients
Edwards owns (GLD) for clients
Edwards owns (SLV) for clients
Edwards owns (BA) for clients
Edwards owns (AMZN) for clients
Edwards owns (V) for clients
Edwards owns (JNJ) for clients
Edwards owns (AAPL) for clients
Edwards owns (MSFT) for clients
Edwards owns (BKCC) for clients
Edwards owns (BMO) for clients
Edwards owns (QCOM) for clients
Edwards owns (GE) for clients
Edwards owns (TGT) for clients
Edwards owns (CME) for clients
Edwards owns (FXI) for clients

GERARD CASSIDY
A member company of RBC Capital Markets or one of its affiliates managed a public offering of (JPM), (BNY)
A member company of RBC Capital Markets or one of its affiliates received compensation for investment banking services from (FNB), (JPM), (BNY) in last twelve months
A member company of RBC Capital Markets or one of its affiliates expects to receive or intends to receive investment banking compensation from (CHCO)
RBC Capital Markets currently provides (BBT), (JPM), (NT), (BAC) with non-investment banking securities-related securities
RBC Capital Markets provides non-securities services to (JPM), (BNY), (BAC)
RBC Capital Markets has provided (FNB), (JPM), (BNY) investment banking services in past 12 months

CNBC.com with wires.

Symbol
Price
 
Change
%Change
BAC
---
BTU
---
JPM MLP ETN
---
PAYX
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET