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Short HMOs On Healthcare Reform?

Healthcare took center stage again Thursday with the President making a new push for something closer to a nationalized health plan.

Hosting a townhall-style meeting in Wisconsin, Obama stuck to his view that a government-sponsored insurance plan must be part of a healthcare revamp, despite opposition from Republicans, private insurers and the American Medical Association.

"We have reached a point where doing nothing about the cost of healthcare is no longer an option. The status quo is unsustainable," Obama said. He insisted, however, he was not seeking a "government takeover" of the troubled system.

Obama's drive on healthcare comes as lawmakers seek to craft a bill and pass it through the Senate before their summer break. Democratic leaders in the House of Representatives also hope to pass legislation by August.

What’s the trade?

I think the news means trouble for the HMOs, says Karen Finerman. I don’t know how you put a value on these stocks ahead of the massive overhaul that’s clearly coming.

I think you can get longUnitedHealth for a trade, muses Guy Adami. But it's a technical trade.

I’d avoid these stocks all together, counsels Jeff Macke.

All the providers will probably take some kind of haircut under the new legislation, speculates Daniel Clifton, Strategas director of policy research. It just depends how much of a haircut. And there will also be some winners too.

Clifton’s Healthcare Reform Winners
*Generics
*Hospitals

Clifton’s Healthcare Reform Losers
*Managed Care
*Biotech

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Trader disclosure: On June 11th, 2009, 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), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Macke Owns (BAC), (AGU), (USO), (SDS); Finerman Owns (RIG), (TBT); Finerman's Firm Own (NOK), (PBR), (RIG), (TBT); Finerman's Firm Is Short (BAC); Finerman's Firm Owns (BAC) Preferred; Finerman Owns (BAC) Preferred; FInerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Terranova Owns (TER), (SDS), (XBI), (ABT), (RIMM), (GENZ); Terranova Is Short (RIG), (OIH), (FCX); Terranova Is Short (XOM) Call Spread; Terranova Owns (BRCM) & (BRCM) Calls; Terranova Owns (MS) & (MS) Calls; Terranova Owns (HES) & (HES) Calls; Terranova Owns (DIS) Call Spread; Terranova Owns (X) & (X) Calls; Terranova Owns (JPM) & (JPM) Calls; Terranova Owns (POT) & (POT) Calls; Terranova Owns (IBM) & (IBM) Calls