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Bail on Transocean, Rotate into Drillers: Oil Pro

If you think the recent favorable court ruling is reason to buy Transocean our pros would like a word.

Of course it makes sense to think Transocean would be a buy.

Earlier in the week U.S. District Judge Carl Barbier ruled that the contract with BP shielded Transocean from what could potentially have been billions in pollution claims related to disastrous 2010 Gulf of Mexico oil spill after it's rig, the Deepwater Horizon, exploded and sank.

Seems like a major positive development, however, top energy trader Dan Dicker says bail on the stock, now.

“The decision does not rule out what the Justice Department can do and if you think the Justice Department will take its cue from a federal bench you’re talking a long leap,” Dicker says.

“They could still get hit with damages from the Clean Water Act – and they need to arrive at a settlement with BP ,” he adds.

Instead, Dicker says the play is get out of Transocean and rotate into drillers Diamond, Ensco, National-Oilwell Varco and/or ATP Oil & Gas . “Those are the stocks to look at now,” Dicker says. “Once we get this issue out of the way the Gulf Of Mexico gets back to normal.”

Trader Patty Edwards agrees. She too likes National-Oilwell Varco. “That’s where I’d play,” she says.

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Trader disclosure: On Jan 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns WFT; Grasso owns XLU; Karabell is long HON; Karabell is long CAT; Karabell is long QCOM; Karabell is long BIDU; Karabell is long VMU; Karabell is short JCP; Karabell is short XLF

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO
Stuart Frankel & Co and it’s partners own CUBA
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Stuart Frankel & Co and it’s partners own HPQ
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Stuart Frankel & Co and it’s partners own MU
Stuart Frankel & Co and it’s partners own NYX
Stuart Frankel & Co and it’s partners own PRST
Stuart Frankel & Co and it’s partners own WFT
Stuart Frankel & Co and it’s partners own XRX

For Patty Edwards
Trutina Financial is long GLD
Trutina Financial is long PGM
Trutina Financial is long INTC
Trutina Financial is long T
Trutina Financial is long SBUX
Trutina Financial is long NOV
Trutina Financial is long SBUX

For Adam Jonas
(F) The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Adam Jonas.

For Jim Mccluney
No disclosures

For Willie Williams
No disclosures

For Jeff Klinefelter
A Piper Jaffray officer, director, or employee (other than a research analyst who follows J. C. Penney Company, Inc.), is an officer and/or director of J. C. Penney Company, Inc.
Piper Jaffray beneficially owns 1% or more of a class of common equity securities of J. C. Penney Company, Inc.
Piper Jaffray usually provides bids and offers for the securities of J. C. Penney Company, Inc. and will, from time to time, buy and sell J. C. Penney Company, Inc. securities on a principal basis.

For Dan Dicker
Dicker is long RIG

For Dennis Gartman
Gartman is long gold

For Anthony Scaramucci
Scaramucci is long C
Scaramucci is long BAC
Scaramucci is long GD
Scaramucci is long BDX
SkyBridge Capital Is A Fund Of Funds Manager
Anthony Scaramucci is one of 8 national finance chairs for Mitt Romney campaign
Held a fundraiser for Mitt Romney
Has contributed to the Romney campaign



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