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How to trade travel stocks on higher oil

Despite a rise in the price of oil Monday, airline stocks hold upside moving forward, "Fast Money" trader Pete Najarian said.

U.S. airline stocks broadly fell as U.S. crude futures settled more than 2 percent higher. Though the terrorist attacks in Paris may lead some to cut back on travel, airlines look appealing after the pullback, Najarian said.

"I think they're all a great buy at these levels pulling back," he said.

He specifically highlighted JetBlue, which has less international exposure than some other U.S. airlines. The stock fell nearly 1 percent on the day.

Customers check in at the JetBlue counter at John F. Kennedy Airport
Getty Images
Customers check in at the JetBlue counter at John F. Kennedy Airport

Monday's pullback in travel stocks extended to some booking companies. Expedia, for instance, slid more than 2 percent.

Despite the drop, investors should "not be selling it tomorrow morning," said trader Brian Kelly.

Trader Guy Adami added that if consumers avoid travel, streaming entertainment company Netflix could benefit. The stock rose more than 7 percent Monday.

Disclosures:

Pete Najarian

Long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AAPL, ABX, BAC, BEE, DAL, DOW, EMR, FB, FIT, JOY, LUK, MRK, MSFT, PBR, PFE, POT, SLV, TJX, UA, UAL, VZ, WYNN, XLF, ZIOP He is long puts EWW, FCX, MRO

Brian Kelly

Brian Kelly is long BBRY, GLD, Bitcoin, Hong Kong Dollar, US Dollar; he is short Yuan, British Pound, Candaian Dollar, Euro, Yen, EEM, EWC, EWH, EWU, EWG, SPY

Karen Finerman

Karen is long BAC, C, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, SEDG, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, DIS puts, FL, GOOG, GOOGL, GPS, JPM, KORS, KORS call spreads, MA, URI, URI long puts, WFM, her firm is short IWM, SPY, MDY, USO, XRT, Karen Finerman is on the board of GrafTech International.

Guy Adami

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