Options Action: Materials

Perhaps no area of the market is more tethered to the global growth story than materials .

And what happens next in the sector is anyone’s guess.

Caterpillar had bullish things to say about the economy and China’s economic numbers showed strength earlier in the week but that could be old news after the market hears from European leaders on Wednesday.

How should you play it? Mike Khouw of Canter Fitzgerald suggests the following options trade.

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Trader disclosure: On October 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Nathan is long Oct. put spread AMZN; Nathan is long Jan. put spread BAC; Nathan is long Nov. put spread MS; Nathan is long Oct. put butterfly NFLX; Nathan is long Oct. put spread GS; Nathan is long Mar. call spread RIMM; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Finerman owns AAPL; Finerman owns GOOG; Finerman owns JPM stock leaps; Finerman owns MSFT; Finerman’s firm owns AAPL; Finerman’s firm owns JPM stock leaps; Finerman’s firm owns MSFT; Finerman’s firm owns short calls IBM; Terranova owns IBM; Terranova owns AAPL; Terranova owns AXP; Terranova owns CAT; Terranova owns F; Terranova owns GS; Terranova owns OXY; Terranova owns FCX; Terranova owns LQD; Terranova owns MUB

For Brian Kelly
Shelter Harbor Capital is long GLD
Shelter Harbor Capital is long soybeans
Shelter Harbor Capital is long corn
Shelter Harbor Capital is long MON
Shelter Harbor Capital is long JJG

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Iuorio is short Nov. calls VXX
Iuorio is long Dec. calls VXX

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