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4 auto trades on strong sales, cheap oil

Ford looks primed to rally after a strong July sales showing, some CNBC "Fast Money" traders said Monday.

The automaker's stock rose 0.7 percent on the day as it beat U.S. sales expectations with a 5 percent increase from the year earlier. Ford truck sales—which climbed 5.7 percent—could drive growth if oil prices continue to fall, said trader Tim Seymour.

A 2015 Ford F-150
Source: Ford Motor Company
A 2015 Ford F-150

He contended that, at around $15 per share, it has the best risk-reward of automotive stocks. Trader Guy Adami added that he would rather buy Ford shares than those of General Motors.

Read MoreUS July auto sales top expectations, boosted by SUVs, trucks

GM sales rose more than 6 percent, but Adami called the stock "dead money" as it has fallen more than 9 percent this year. Trader Dan Nathan added that it looks like a possible short trade.

Adami noted that he likes shares of auto retailer AutoNation, which have climbed slightly this year, going more than 1 percent higher.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, T, BAC, DIS, F, GE, GM, GOOGL, INTC, JPM, TSL, SUNE, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.

Pete Najarian

Long AMAT, AAPL, BAC, BMY, CSX, DISCA, DKS, FOXA, GE, KKR, KO, LLY, MRK, PEP, PFE, he is long calls AAPL, ABX, AGNC, AMKR, AXP, BAC, BMY, CRM, CSX, CY, DAL, DVN, ETFC, FB, LC, LM, LULU, MU, P, PG, PNR, RF, SYY, TWTR, UAL, UPS, USG, WYNN, VZ, XLF, ZIOP, he is long puts AUY, RIG.

Dan Nathan

Dan is long QQQ sept put, JOY sept calls, TWTR, TWTR sept call spreads, SO, BA sept put spread, COST aug put spread, TJX aug put, SLB aug 28th put spread, MSFT aug / nov put spread.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.