Crude oil prices tumbled into the close Thursday, while energy stocks saw a slight bounce on news that Halliburton was looking to acquire Baker Hughes. That provided a variety plays, the CNBC "Fast Money" traders said.
"It's fantastic if you're driving a giant SUV. That's fantastic. But actually if you're a roughneck in the middle of Texas, I'd be a little concerned at this point in time," Brian Kelly of Brian Kelly Capital said. "I think with the Baker Hughes news, that doesn't necessarily put a bottom in oil, but it may put a bottom in the oil-service stocks because everybody will be out there, betting who's next. And they actually have diverged from oil, if you noticed, since the middle of October."
Kelly said that his play would be Occidental.
"Harold Hamm, he's in the news now, but he took off all the hedges. So, this means he's all in," he said. "This company is completely levered to the price of oil. And right here at $52, I'd buy it."
Crude oil closed down $2.97 at $74.21 per barrel, its lowest since September 2010.
Private Advisor Group's Guy Adami said that Schlumberger was worth a look.
"This Baker Hughes deal, you wonder if it gets through the Justice Department," he said. "On selloff today, given what's happened, SLB looks interesting."
Dan Nathan of RiskReversal.com said he wouldn't chase oil stocks based on the merger talk.
"To me, this isn't exactly a deal out of a position of strength," he said. "To me, it looks like a proposed deal out of a position of weakness."
Crude oil likely has further to fall, TradeMonster's Pete Najarian said.
"Even today, take a look at the price action in oil. That does not look like a demand issue to me. I didn't see any releases about demand falling off or anything like that," he said. "I still contend that it has all to do with guys that have been levered up, and there's margin calls being called. And you see these huge moves in oil you don't normally see."