Options Action: Patriot Coal

With shares of Patriot Coal up 93% over the last 3 months, how should you game this stock ahead of earnings on Tuesday.

Find out why Mike Khouw Of Cantor Fitzgerald suggests the following options trade in Patriot Coal . Watch the video now!

* After the broadcast, Fast Money producers told us Mike Khouw misspoke on the video. "Mike Khouw said that he wanted to leverage his trade up to 27.  He meant to say 29," we're told.

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Trader disclosure: On Jan. 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Cortes owns (PM); Cortes owns (MO); Cortes owns (EXC); Cortes owns (MS); Cortes owns (GS); Cortes is long U.S. Treasuries; Cortes owns (TSN); Cortes is short (LVS); Cortes is short (BAC); Terranova Owns (VRTS); Terranova Owns (C); Terranova Owns (UPL); Terranova Owns (GM); Terranova Owns (PEP); Terranova Owns (MS); Terranova Owns (POT); Terranova Owns (LTD); Terranova Owns (SU); Terranova Owns (CVI); Terranova Owns (CVE); Terranova Owns (CPX); Terranova Owns (CNQ)

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BRIAN KELLY
Accounts Managed by Kanundrum Capital Own (BAC)
Accounts Managed by Kanundrum Capital Own The Yen
Accounts Managed by Kanundrum Capital Own (TLT)
Accounts Managed by Kanundrum Capital Own (SDS)
Accounts Managed by Kanundrum Capital Own (MON)
Accounts Managed by Kanundrum Capital Own (DBA)
Accounts Managed by Kanundrum Capital Own (JJG)
Accounts Managed by Kanundrum Capital Own (DO)
Accounts Managed by Kanundrum Capital Own (RDC)
Accounts Managed by Kanundrum Capital Own (ATW)
Accounts Managed by Kanundrum Capital Are Short Australian Dollar

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
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Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
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Virtus Investment Partners Owns More Than 1% Of (XLP)
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Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

ZACHARY KARABELL
River Twice Capital is short (HAL)
Karabell Owns (RIMM)

DENNIS GARTMAN
Funds managed by Dennis Gartman are long Gold
Funds managed by Dennis Gartman are short Yen
Funds managed by Dennis Gartman are short Euro
Funds managed by Dennis Gartman are short Sterling
Funds managed by Dennis Gartman are long Corn
Funds managed by Dennis Gartman are long Nat Gas
Funds managed by Dennis Gartman are long Swiss Franc
Funds managed by Dennis Gartman are long Canadian Dollars
Funds managed by Dennis Gartman are long Australian Dollars
Funds managed by Dennis Gartman are long Wheat
Funds managed by Dennis Gartman are long Crude
Funds managed by Dennis Gartman are long Soybeans

CRAIG BERGER HALFTIME PLAY OF THE DAY
FBRCM is a market maker or liquidity provider for (BRCM)

FAST 360
DAVID CAMPBELL, SCOTT NATIONS, CARTER WORTH
Campbell has no disclosures
Worth has no disclosures
Nations has no disclosures

DAVID RIEDEL
Riedel has no disclosures

REBECCA PATTERSON
Patterson has no disclosures

PETE NAJARIAN
Pete Najarian owns (CNI)

MIKE KHOUW
Cantor Fitzgerald & Co is a market maker in (PCX)

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