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Pro: Tremendous Opportunity in Oil Services Stocks

There’s a “tremendous, tremendous” opportunity in oil services stocks right now, MercBloc’s Dan Dicker told the “Fast Money” team Tuesday.

Dicker, also a CNBC contributor, pointed to a “huge divergence” between the price of oil and oil services prices over the last two months.

Typically there is a directional correlation between the two. But now, he said, oil services companies are down almost 40 percent, while oil is down a little less than 20 percent.

“This is an unbelievable divergence which has to close in,” he said.

Just look at the prices of big names like Schlumberger, Halliburton and Baker Hughes , he said. They are pricing global oil closer to the price of WTI.

And Dicker said that assumes one of two things is going to happen. Either oil is “going to fall off the table” and come down well below what he is expecting.

Or, oil is going to find its year bottom somewhere in the mid-70s, like Dicker predicted, which makes “oil services stocks a tremendous value here.”

Fast trader Joe Terranova has his sights on oil. He’s long the OIH, long Occidental Petroleum , and longHornbeck Offshore Services .

“I love oil,” he said.


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Trader disclosure: On Oct 4, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long LQD; Terranova is long MUB; Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Cortes is long (CAG); Cortes is long (PEET); Cortes is long (SO); Cortes is long the Euro; Cortes is short (SI); Cortes is short (DB); Cortes is short the Australian Dollar; Edwards owns XLK

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of Building Materials Holdings
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 (KRC)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd
Virtus Investment Partners Owns More Than 1% Of (RLI)
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 (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 Domino's Pizza UK & IRL PLC

For Patty Edwards
Trutina Financial owns AMZN
Trutina Financial owns C
Trutina Financial owns KO
Trutina Financial owns MO
Trutina Financial owns GOOG
Trutina Financial owns JWN
Trutina Financial owns Gold
Trutina Financial owns Silver
Trutina Financial owns QCOM

For Brian Kelly
Funds managed by Brian Kelly are long Treasury Bonds
Funds managed by Brian Kelly are short (LEN) options
Funds managed by Brian Kelly are short (SLV) options
Funds managed by Brian Kelly are short S&P futures
Funds managed by Brian Kelly are short Copper
Funds managed by Brian Kelly are short (CAT) options

For Dan Dicker
**No disclosures

For Steve Wilder
CapStone Investments makes a market in (AMR)

CNBC.com with wires.

Symbol
Price
 
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%Change
BHI
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HAL
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HOS
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OXY
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SLB
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MV OIL SVCS
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