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A shutdown bet on gaming stocks

Friday, 11 Oct 2013 | 1:24 PM ET
Making a shutdown bet on gaming stocks
Friday, 11 Oct 2013 | 12:02 PM ET
Chances are that gaming stocks will pop on news of a deal to end the Congressional impasse, Jon Najarian of OptionMonster says.

Odds are good that gaming stocks would reap big wins on news of a deal to end the congressional impasse, OptionMonster's Jon Najarian said Friday.

"I'd say 80/20 that they do get a deal," he said. "I'm buying a lot of the gaming stocks because MGM, Boyd, LVS, Wynn, I like all of those—bought them because I believed they would be some of the hardest hit."

On CNBC's "Fast Money," Jon Najarian said that the sector held large potential gains.

"I think these ramp significantly," he said.

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OptionMonster co-founder Pete Najarian noted the recent drop in the CBOE Volatility Index, from 21 to 15.

"That's pretty extreme," he said.

Pete Najarian said that he liked asset managers, such as Blackstone, and energy names such as Range Resources, Newfield Exploration and Valero.

"I think those are areas that are still safe through the weekend," he said.

JNJ not a stock to own if bullish: Weiss
Johnson and Johnson received an upgrade at Goldman Sachs. "Fast Money" traders Pete Najarian and Steve Weiss debate if now is the time to bet on the pharma.

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Stephen Weiss, of Short Hills Capital, was playing it more cautiously.

"This is another momentum trade," he said, as stocks moved higher in anticipation that Congress would approve payment of U.S. debt and avoid a default.

But he wasn't jumping in just yet.

"I'm still waiting to see an actual deal be announced. That's what's going to get me to add more cash to the market," Weiss said. "However, selectively, I've been doing it all along."

(Read more: 'Horrendous' retail holiday ahead: Steve Kernkraut)

Weiss said that he was layering into Facebook stock, for instance.

Ultimately, there would be a deal in Washington to avert a financial disaster, he said.

(Read more: 3 stock sectors at 'inflection point': Strategist)

"The risk of it not happening is far too great," Weiss said.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

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MGM
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BYD
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LVS
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WYNN
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VIX
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BX
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RRC
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NFX
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FB
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