RadioShack, Big Lots: Strategies for Trading the Weakness

A handful of stocks landed on Fast Money’s trader radar due to weakness. How should you play the declines?

Radioshack

Does the decline in Radioshack leave you thinking it’s about to bounce? The stock made an intraday low of $5.30, the lowest intraday level since February 26, 1981

“If you want to play it – do it with options so you can limit your risk,” says trader Joe Terranova. “I wouldn’t buy the equity.”

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Big Lots

Again, you may be looking for a pop. Big Lots had its worst day since Nov. 2008, breaking below 200-day moving avg.

“If you’re tempted, hold off for a few days and see if the stock stabilizes. Only if stabilizes would I think about playing this,” says Steve Grasso.

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Coach

Although Coach posted a higher-than-expected quarterly profit on Tuesday, the stock declined, somewhat mysteriously.

“Investors were concerned by the growth rate, Simon Baker tells us . “Over the last 8 quarters, that’s the smallest growth they’ve had – and that’s a big concern,” he says. In other words, stay away.

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Trader disclosure: On April 24, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long NXPI; Joe Terranova is long JPM; Joe Terranova is long JOY; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steve Grasso is long ABX; Steve Grasso is long CUBA; Steve Grasso is long GERN; Steve Grasso is long HPQ; Steve Grasso is long HSPO; Steve Grasso is long MU; Steve Grasso is long NEM; Steve Grasso is long NYX; Steve Grasso is long P; Steve Grasso is long PRST; Steve Grasso is long VVUS; Steve Grasso is long XRX; Steve Grasso is long ZNGA; Steve Grasso is long FDX; Steve Grasso is long TBT; Steve Grasso is long UAL; Josh Brown is long AAPL; Josh Brown is long EMC; Josh Brown is long NTAP; Josh Brown is long JPM; Josh Brown is long COP; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long GS; Simon Baker is long JPM; Simon Baker is long MS; Simon Baker is long GLD; Simon Baker is long XLF; Simon Baker is long IBM; Simon Baker is long WMT; Simon Baker is long ADSK; Simon Baker is long DELL; Simon Baker is long IBM

For Whitney Tilson
Whitney Tilson is long NFLX

For Toni Sacconaghi
Bernstein currently makes a market in the following companies AAPL

For Bryan Elliott
Raymond James & Associates makes a market in shares of PNRA
Raymond James & Associates makes a market in shares of BWLD

For Mark Zgutowicz
Piper Jaffray received non-investment banking securities-related compensation from the following companies during the past 12 months: VCI
Piper Jaffray makes a market in the securities of LNKD

CNBC.com with wires.