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‘You Need to Buy Puts’: Brian Kelly

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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