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Strong Call Buying in This Energy Stock: Pete Najarian

Following are Fast Money's Pops & Drops from Thursday's 5pm broadcast.

Find out what’s going up, what’s going down and whether the CNBC traders would double down, fade or run in the other direction!

UNG

The catalyst:The ETF that tracks nat gas traded higher with investors likely betting that hot weather gripping much of the nation will boost demand for air conditioning.

The trade: It looks like nat gas is going above $3, says Fast trader Joe Terranova, chief market strategist for Virtus. I’d stay with it.

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Tyson Foods

The catalyst: Pros including Dennis Gartman are starting to predict higher meat prices are much more likely in the wake of the dwindling corn crop. (Cattle are fed corn.)

The trade: I would not be a buyer of the dip, says Fast trader Steve Grasso, director of institutional sales trading at Stuart Frankel.

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VIX

The catalyst: With the ECB and China cutting rates, investors may be interpreting the moves as a sign the economic landscape is worsening.

The trade: I expect options investors to drive the price of puts even higher, says Fast trader Mike Khouw, managing director and head of equity derivatives CRT Capital. (In turn, that should drive volatility higher.)

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Patriot Coal

The catalyst: Energy market data firm Argus Media said mining costs for Australian companies have been surging. That could be good news for U.S.-based companies because Australian companies might have to cut back on production.

The trade: I’m seeing a lot of call buying, says Fast trader Pete Najarian, co-founder OptionMonster.com. That suggets options investors are looking for more upside.

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Gold Miners

The catalyst: A stronger dollar and lower risk of inflation has been reducing gold's appeal and as a result, investor interest in the ETF that tracks the gold miners.

The trade: I think you can still play miners, especially if you believe the economy is getting worse, says Fast trader Tim Seymour, founder of EmergingMoney.com.

Posted by CNBC's Lee Brodie

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Trader disclosure: On July 5, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long NKE; Joe Terranova is long AAPL; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Steven Grasso is funds long ABX; Steven Grasso is funds long CUBA; Steven Grasso is funds long GERN; Steven Grasso is funds long J[Q; Steven Grasso is funds long HSPO; Steven Grasso is funds long MU; Steven Grasso is funds long NYX; Steven Grasso is funds long PRST; Steven Grasso is funds long VVUS; Steven Grasso is funds long XRX; Steven Grasso is funds long ZNGA; Steven Grasso is funds long CVH; Steven Grasso is funds long GM; Steven Grasso is funds long NYX; Steven Grasso is funds long TBT; Steven Grasso is funds long WLP; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long TJX CALLS; Pete Najarian is long NFLX CALLS; Pete Najarian is long MOS; Pete Najarian is long PCX CALLS

For Michelle Meyer
Nothing to Disclose

For Brad Lamensdorf
Brad Lamensdorf is funds short FOSL
Brad Lamensdorf is funds short JCOM
Brad Lamensdorf is funds short COL

For Scott Mushkin
Jefferies Group, Inc. makes a market in the securities or ADRs of Whole Foods Market.
Jefferies Group, Inc. makes a market in the securities or ADRs of United Natural Foods.

For Mark Chaikin
Nothing to Disclose


Symbol
Price
 
Change
%Change
GD
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MS
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PAYX
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TSN
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UNG
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VIX
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