×

4 ways to play oil's slide

Oil prices continue to tank, and many energy stocks have suffered through the commodity's decline. With WTI and Brent crude futures plummeting to nearly six-year lows, oil giants like Exxon Mobil and Chevron have taken hits of their own.

But falling stock prices can often yield the best entry points. Oil may have some room to fall before reaching a bottom, and traders on CNBC's "Fast Money" see opportunity to scoop up energy if it reverses course in the near future.

Getty Images

Struggling stocks could surge on an oil rebound. Most of the direct energy plays traders chose slogged through the end of 2014 into the new year.

Read MoreHere's where pros say oil will bottom (Ouch!)

Seadrill, an offshore drilling company, holds some upside, said trader Guy Adami. The stock suffered through 2014, as it dropped about 70 percent. Seadrill slid on Tuesday to about $10.50 per share, which could prove an enticing entry point before a reversal.

"On a valuation, it's gotten ridiculously cheap and has a pretty big short interest," Adami said.

Another energy laggard, Whiting Petroleum, lost about half its value in 2014. But trader Pete Najarian calls it a solid play in the cheap oil environment.

Read MoreExpect $40 oil, U.S. to shut 200 rigs, pro says

The Bakken oil producer slipped under $30 per share on Tuesday, but it could prove fruitful if it starts some upward momentum, Najarian said.

"I think you can wait a while. When it gets to $35, when it finally starts to move, then it might be time to look at it," Najarian said.

Last year was not kind to another American producer, Continental Resources, which trader Brian Kelly believes is a sound play moving forward. The company's shares plunged more than 30 percent in 2014, but Continental's business model—combined with Tuesday's close under $34 per share—could push it to shine on oil's resurgence.

"Harold Hamm is the owner of this. He's the one who took off all his oil hedges. So if you get a reversal on oil, CLR is going to rip," Kelly said.

Read MoreTraders still betting on much lower oil

While direct energy plays seem logical if oil starts to climb, the cheap oil environment favors other investments, as well. Aside from his drilling play, Adami feels the iShares 20+ Year Treasury Bond ETF could set up a solid entry point if it slips in the near future.