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Pros: The Energy Trade of the Future

On Friday the Fast Money pros were closely watching the energy trade, after BHP Billiton made a big bet on nat gas here in the US with the acquisition of Petrohawk Energy for $12.1 billion – a 60% premium to Petrohawk’s closing price.

Trader Brian Kelly takes the deal as 'tell' involving the future of the industry. Specifically, he sees it as confirmation that nat gas will become an even more desired energy source in the future. “Eventually we’re going to have natural gas powered vehicles, especially in the trucking sector,” he says. Kelly is placing his bets long Clean Energy Fuels .

But CLNE is far from the only related play.

The Fast gang points out that rivals have spiked on the deal. Chesapeake, Range Resources, SMEnergy, Southwestern and Forest Oil all moved on the headline – perhaps all names for the radar.

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ICAHN LOOKS TO CLEAN UP WITH CLOROX

Investors were surprised on Friday to learn Carl Icahn made a bid to acquire Clorox for $10.2 billion.

But perhaps even more surprising, the billionaire investor and Fast friend wrote a letter to Clorox Chief Executive Donald Knauss, in which he said he was confident the company could get "numerous superior bids" from large consumer products companies.

What should you make of it?

According to Jon Najarian, a higher than usual volume of Jan 80 calls suggests that options investors may be expecting another -- and higher -- bid.

Trader Patty Edwards isn't so sure. Although she likes their products, crunching the numbers on the back of an envelope, she's not sure the company is even worth the $10 billion that Icahn offered.

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VIX RIPPING WHILE THE S&P IS ALSO POSITIVE

The traders are also closely watching the Vix which continues to spike higher despite gains in the S&P.

What should you make of it?

OptionMonster Jon Najarian takes it as a sign that investors remain nervous. However, he doesn't think its surprising given the lingering potential of a US debt default as lawmakers in DC quibble over the debt ceiling.

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MONEY IN MOTION

The euro traded flat on Friday following the release of the European bank stress test.

How should you trade now?

Find out from Willie Williams of Societe Generale. Watch the video now!




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Trader disclosure: On July 15 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (AAPL); Pete Najarian owns (AKAM); Pete Najarian owns (C);Pete Najarian owns (MS);Pete Najarian owns (MRVL);Pete Najarian owns (HPQ);Pete Najarian owns (RSX);Pete Najarian owns (TCK);Pete Najarian owns (VLO);Pete Najarian owns (GE);Pete Najarian owns (PEP);Pete Najarian owns (PFE);Pete Najarian owns (MRK);Pete Najarian owns (TEVA);Pete Najarian owns (TER);Pete Najarian owns (XOM);Pete Najarian owns (F) bonds; Pete Najarian owns (V) calls; Pete Najarian owns (HAL) calls; Pete Najarian owns (CROX) calls; Jon Najarian is long (AAPL) call spreads; Jon Najarian is long (BIDU) call spreads; Jon Najarian is long (BRCM) call spreads; Jon Najarian is long (CLX) call spreads; Jon Najarian is long (HK) call spreads; Jon Najarian is long (UA) call spreads

For Brian Kelly
Accounts Managed By Brian Kelly Capital Own (ATW)
Accounts Managed By Brian Kelly Capital Own (CLF)
Accounts Managed By Brian Kelly Capital Own (CLNE)
Accounts Managed By Brian Kelly Capital Own (GDXJ)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (FCX)
Accounts Managed By Brian Kelly Capital Own (INTC)
Accounts Managed By Brian Kelly Capital Own (IPI)
Accounts Managed By Brian Kelly Capital Own (KRE)
Accounts Managed By Brian Kelly Capital Own (WFC)
Accounts Managed By Brian Kelly Capital Own (MON)
Accounts Managed By Brian Kelly Capital Own (VIX) calls

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (AMZN) For Clients
Edwards Owns (PG) For Clients
Edwards Owns (QCOM) For Clients
Edwards Owns (MCD) For Clients
Edwards Owns (BMO) For Clients
Edwards Owns (KO) For Clients
Edwards Owns (XLB) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns GOLD For Clients
Edwards Owns SILVER For Clients
Edwards is long (XLK)
Edwards is long the Canadian Dollar

For David Hilder
SFG is a market maker in the securities of Citigroup, Inc. (C). SFG and/or its affiliates beneficially own 1% or more of the securities of Citigroup, Inc. (C).

For Willie Williams
**No Disclosures



CNBC.com with wires.

Symbol
Price
 
Change
%Change
BHP
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CHK
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CLNE
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CLX
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FST
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HK
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REG
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SM
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LUV
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VIX
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