Fast Money's 'Correction Protection' Plan

With chatter of a correction growing louder and louder, how can you still profit and protect? The Fast Money gang has a few ideas.

#1: Correction Protection: Regional Banks

Pete Najarian suggests looking at BB&T due to bullish options action. An unusual amount of BB&T Feb 30 call volume leads him to believe the stock could make a sharp move higher.

I think the short trade might be interesting, counters Guy Adami. Regional banks have problems aside from new government restrictions.

For the short term I think there’s more upside in regional banks, counters Jon Najarian - Pete's brother. I also think that takeovers in the space may be off the table now that the White House is telegraphing that bigger is not better in this space.

#2 Correction Protection: Tech Storage

Guy Adami recommends putting Western Digital on your radar. They 'crushed it' on earnings, says the Negotiator. However, in the after hours I don’t like the way it’s trading. I think it’s setting up for a little pullback, but on a dip I’m a buyer.

Or put Seagate on your radar, adds Pete Najarian. It’s also a buy on any pullback.

#3 Correction Protection: Cheap Funding Beneficiaries

I'm watching companies that are cash rich, says Karen Finerman. Names like Oracle, IBM, and Johnson & Johnson may make acquistions. It's a good way to use their cash.

I agree that tech and pharma are two sectors that should see more M&A, echoes Pete Najarian.

I like JNJ to hideout, adds Guy Adami.

I'm bullish on Glaxo, adds Tim Seymour.

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Trader disclosure: On January 21st, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman Owns (AAPL); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Pete Najarian Owns (BBT) Calls; Pete Najarian Owns (BP), Is Short (BP) Call; Pete Najarian Owns (GS) Call Spread; Pete Najarian Owns (INTC) Calls; Pete Najarian Owns (MS), Is Short (MS) Calls; Pete Najarian Owns (MRVL); Pete Najarian Owns (PFE); Pete Najarian Owns (XLF) Calls; Pete Najarian Owns (CLF) Call Spread; Pete Najarian Owns (TCK), Is Short (TCK) Calls; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU)’ Seymour Owns (FXI), (AAPL), (BAC), (GOOG), (INTC), (POT)

For Tim Seymour:
Seygem Asset Management Is Short (PBR)
Seygem Asset Management Is Short (FCX)

For Jon Najarian:
Jon Najarian Owns (GOOG) Put Spread
Jon Najarian Owns (POT) Call Spread
Jon Najarian Owns (GOOG)

For Brad Hintz:
Hintz Owns Morgan Stanley And Discover
Hintz Owns (CME)
Accounts Over Which Bernstein And/Or Affiliates Exercise Investmet Discretion Own More Than 1% Of (GS), (MS)
(GS), (MS) Are Or In Past 12 Months Were Clients Of Bernstein (Non-Investment Banking-Securities Related Services)
An Affiliate Of Bernstein Received Non-Investment Banking Compensation From (GS), (MS) (Securities Related Services)

For Richard Kugele:
Needham & Company Is A Market Maker In (STX)

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