Big Earnings Ahead

Looks like next week could be a big week for the markets. The dreaded earnings season is kicking into full gear. Although it’s no secret that the numbers are going to be bad, investors aren’t sure how bad.

With so many companies reporting which stocks should you be watching? Fast Money contributor Jon Najarian tells us that he has Caterpillar, American Express and AK Steel on his radar. Here’s how he’s gaming it.


“Puts in CAT are trading 2 to 1,” explains Jon Najarian. “I put on a put spread. That because after they announce earnings I think the stock could whoosh to the downside. If it trades 3-4 dollars lower than where it closed Friday, to me it’s a buy.”

American Express

“I bought the stock and sold the above the market calls and the below the market puts. Because the volatility is so high I’m being richly rewarded. But I don’t think the shares go anywhere.

AK Steel

The stock was dropped from Goldman’s conviction buy list but closed in positive territory. I own it outright and I own calls.

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Trader disclosure: On Jan 23, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MS), (BAC), (C), (TM), (MCD); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Najarian Owns (EEM) Call Spread; Najarian Owns (FCX) & (FCX) Short Calls; Najarian Owns (GLD) Call Spread; Najarian Owns (GE) Put Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls/Put Spread; Najarian Owns (GNW) Long Calls; Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Owns (MSFT), (TBT), (UNH), (V); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (ANF), (COF), (USO); Finerman's Firm Owns (ROH) Calls

J. Najarian Is Short (CAT), (AXP), (AKS); J. Najarian Owns (AXP) Calls & Puts