With so many variables what can you expect from the energy space as the big names report earnings next week?
“I think we’re reaching a bottom in oil and I think there are a couple ways to play it,” says Mike Khouw Cantor Fitzgerald's director of US equity derivatives
However he doesn’t think you should play the commodity itself. Instead he says, “take a look at Exxon and ConocoPhillips. Exxon just hasn’t sold off relative to the other integrated oils as much as it should and Conoco has been beaten up pretty bad.”
So what’s the trade? “Long COP and short XOM, concludes Khouw.
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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
Mike Khouw Owns (XOM)
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