A major, potential headwind in March makes it clear that investors should be adding protection to their portfolios, OptionMonster's Pete Najarian said Friday.
On "Fast Money," Najarian attributed the stock market's gains this week to a deal that averted the so-called "fiscal cliff."
Now, he added, the market would be able to get back to fundamentals, trading based on the data behind the companies themselves.
"Of course, that's only going to last for about three or four weeks, and immediately we're going to look ahead at March and having all the concerns return once again," he said.
The federal debt ceiling will have to be raised by March, or else the government will run out of operating funds.
"Because of what I think will be coming in March, I think it's time to buy – if you're in the market - buy protection now at these levels," he said.
The VIX traded below $14 midday, on track for its biggest weekly loss in 26 years.
Rosecliff Capital's Mike Murphy said it was time to buy stocks, but with a caveat.
"With the VIX down here, what does that tell you? It tells you that the price of options is extremely low," he said.
Murphy suggested getting long and staying long in quality stocks, while adding puts to those positions to protect against an economic meltdown.
"Stay long but have your protection," he said.
Trader disclosure: On Jan. 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long AAPL; Mike Murphy is long BAC; Mike Murphy is long C; Mike Murphy is long FB; Mike Murphy is long TGT; Mike Murphy is long GBX; Jon Najarian is long call spreads in VIX; Jon Najarian is long call spreads in MOS; Jon Najarian is long call spreads in APC; Jon Najarian is short AAPL; Jon Najarian is short LULU; Jon Najarian is long TBT; Pete Najarian is long calls in CP; Pete Najarian is long calls in LCC; Pete Najarian is long AAPL ; Pete Najarian is long FB; Pete Najarian is long BAC CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long CLF ; Pete Najarian is long TCK; Pete Najarian is long EMN CALLS; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM.
