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7 Opportunities In Oil

Considering crude oil has jumped almost 17% over the last month how should you trade energy stocks?

Trader Brian Kelly likes Valero and Tesoro . “Both of those charts look fantastic and they benefit from higher prices.”

Guy Adami suggest looking at RIG which declined 6% in extended trade after the latest earnings report showed an unexpected decline in revenue, in part due to a surge in shipyard costs.

Looking at the numbers, Transocean posted a third-quarter net loss of $71 million, or 22 cents per share, compared with a profit of $368 million, or $1.15 per share, a year ago. Revenue fell 2 percent to $2.24 billion, below the average analyst estimate of $2.36 billion, according to Thomson Reuters I/B/E/S.

“Yes it was a big miss," concedes Adami, "but this is a name that's already been beaten. If you see a capitulation sell-off with big volume on Thursday, I'd pick some up toward the close.”

Elsewhere in the space, pro energy trader Joe Terranova is bullish Anadarko, Occidental , Suncor and Petrobras. "Big players want to be long oil," he says. "And they're looking at these stocks."



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Trader disclosure: On Nov 2, 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 is long BAC; Seymour is long INTC; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Terranova is long IBM; Terranova is long AAPL; Terranova is long CF; Terranova is long AKAM; Terranova is long CNQ; Terranova is long AXP; Terranova is long MUB; Finerman owns AAPL; Finerman owns BAC; Finerman owns MSFT; Finerman owns GOOG; Finerman’s firm owns AAPL short calls; Finerman’s firm owns JPM; Finerman’s firm owns YHOO short calls; Finerman’s firm owns IBM short calls; Finerman’s firm owns MSFT; J. Najarian is long DB; J. Najarian is long CBOE; J. Najarian is long CME; J. Najarian is long CIGX; J. Najarian is long MDR; J. Najarian is long MSFT; J. Najarian is long AKAM call spreads; Stutland is short AAPL puts; Stutland is long MSFT corporate bonds; Stutland is short goog put spread; Stutland is short gld puts and long call spread; Stutland is short TLT puts; Stutland is long stock and short calls INTC; Stutland is long corporate Banking sector bonds

For Brian Kelly
Shelter Harbor Capital is long Gld
Shelter Harbor Capital is long SPY
Shelter Harbor Capital is long VLO
Shelter Harbor Capital is long NLY

For Brian Stutland
Stutland Equities is a market maker holding hedged positions in VIX and VXX underlying and options.
Stutland Equities holds positions hedged in SPX and SPY

For Bill Schmitz
Deutsche Bank (and/or affiliates) owns 1% or more of any class of common equity securities of AVP.

Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from AVP within the past year.

AVON has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.

For Karen Short
I, Karen Short, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months.

This issuer is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Non-Securities Related Services. BMO Capital Markets makes a market in this security.

For Irwin Simon
No disclosures

For Anthony catanach
No disclosures

For Stuart Hughes
No disclosures

CNBC.com with wires.

Symbol
Price
 
Change
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APA
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OXY
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PETR'
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RIG
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SU
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TSO
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VLO
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