‘You Need to Buy Puts’: Brian Kelly

Thursday, 17 Jan 2013 | 5:30 PM ET
'You Need to Buy Puts': Brian Kelly
There's no cause for concern, but stock levels suggest this trade, Shelter Harbor Capital's Brian Kelly says.

There's no cause for concern, but stock levels suggest that investors should be buying protection, Shelter Harbor Capital's Brian Kelly said Thursday.

"I came in long today. I stayed long," he said. "I don't think there's any reason to be terribly concerned, but you need to buy puts. I will absolutely say that. We're at five-year highs here. Volatility's at low. You have to protect yourself."

On "Fast Money," Kelley added that central banks around the world were looking to devalue currencies, "making equities catch a bid in every country."

Transports, airlines, housing, cyclicals and pharmaceuticals traded around 52-week highs.

EmergingMoney.com's Tim Seymour noted that stocks appeared strong on a fundamental basis and S&P 500 earnings were beating expectations.

"I think the housing sector is being supported by the banking sector," he said. "I know that seems a little bit opposite, but I think therefore we have the leadership in this market that can take us farther."

OptionMonster's Jon Najarian said that he "saw a lot of money flowing out of bonds" and noted that "people were buying puts like crazy."

Trader disclosure: On Jan. 17, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is funds long ERJ; Tim Seymour is funds long RIO; Jon Najarian is long GS CALLS SPREADS; Jon Najarian is long INTC CALLS; Jon Najarian is long EBAY CALLS; Jon Najarian is long NFLX PUTS; Jon Najarian is long AMRN CALLS; Brian Kelly is long QQQ; Brian Kelly is long XLK; Brian Kelly is long SPY; Brian Kelly is long TLT; Brian Kelly is long XLF; Brian Kelly is long JJG; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU.

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