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Options Action: PF Chang

Millions look up to them; they're wildly over-compensated and when the pressure's on they implode - missing goal… after goal...after goal.

Nope, we're not talking about the French soccer team - we're talking about Wall Street economists.

After a spectacularly poor performance predicting new home sales last week, the gang is aiming for Friday's payroll report.

And sure enough, their estimates are all over the map, ranging from a gain of 50,000 jobs to a loss of 200,000.

That's why it's time to turn to the straightest shooter of 'em all: marksman Mike Khouw and his dead-on derivatives.

What's the trade?

If the jobs report disappoints, Khouw expects PF Chang to be weak. As a result he recommends the following put spread - a hedged way to make a bearish bet.

Buy Aug 45 put - pay $4.15
Sell Aug 40 put - pay $1.70
Profitable at expiration below $42.55

Learn more about this trade. Watch the video now.





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Trader disclosure: On June 28, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (INTC); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (IPSU), (BX), (AGU), (PFE), (TER), (GMCR), (RSX), (TER), (AXP), (KO), (KR), (COST), (AMZN), (TEVA), (BMO), (DIS), (XCO), (SWN), (GMCR), (IPI), (SU), (XOM), (RDS.A), (COP), (OXY), (V), (FXB): Terranova owns (GLD) July 120 puts; Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ); Kelly is short (GS); Jon Najarian owns (AAPL) call spreads; Jon Najarian owns (MU) call spreads; Jon Najarian owns (SNDK) call spreads; Jon Najarian owns a seat and stock in (CME); Jon Najarian owns a seat and stock in (CBOE); Jon Najarian owns a seat and stock in (NYX)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (AMKR)
Virtus Investment Partners owns more than 1% of (IGE)
Virtus Investment Partners owns more than 1% of (DBV)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLV)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own (GDX)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own Treasuries

Accounts managed by Kanundrum Capital own US Dollars
Accounts managed by Kanundrum Capital is short (AMZN)
Accounts managed by Kanundrum Capital is short (RCL)
Accounts managed by Kanundrum Capital is short (XLY)
Accounts managed by Kanundrum Capital is short (XLE)
Accounts managed by Kanundrum Capital is short (AFL)
Accounts managed by Kanundrum Capital is short (CME)
Accounts managed by Kanundrum Capital is short (EWI)
Accounts managed by Kanundrum Capital is short (EWO)
Accounts managed by Kanundrum Capital is short (GS)
Accounts managed by Kanundrum Capital is short (HIG)
Accounts managed by Kanundrum Capital is short (RKH)
Accounts managed by Kanundrum Capital is short (XLF)
Accounts managed by Kanundrum Capital is short (XLI)
Accounts managed by Kanundrum Capital is short (FCX
Accounts managed by Kanundrum Capital is short (GFI)
Accounts managed by Kanundrum Capital is short (JOYG)

Accounts managed by Kanundrum Capital is short (XLB)
Accounts managed by Kanundrum Capital is short (XLK)

Mike Khouw
Cantor Fitzgerald makes a market in (MON)
Cantor Fitzgerald makes a market in (FWLT)
Cantor Fitzgerald makes a market in (AAPL)

Cantor Fitzgerald makes a market in (RIMM)
Cantor Fitzgerald makes a market in (QCOM)
Cantor Fitzgerald makes a market in (STX)
Cantor Fitzgerald makes a market in (SNDK)
Cantor Fitzgerald makes a market in (MGM)
Cantor Fitzgerald makes a market in (WYNN)
Cantor Fitzgerald makes a market in (LVS)
Cantor Fitzgerald makes a market in (PFCB)

David Levy
Levy owns Treasuries

Toni Sacconaghi
Sacconaghi owns (PLMO)
Sacconaghi owns (STX)



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