With so many extraneous factors threatening to sideline your trades, Pete Najarian and Gary Kaminsky have some suggestions.
In a period where things are so uncertain, Gary Kaminsky recommends putting on a pairs trade. "If you like something long this is a good time to go short against it as a hedge," he says.
Kaminksy also suggests using options for protection and “nothing is wrong with cash,” he adds.
Pete Najarian has another idea. He suggests using options to participate on the upside but limit your downside. On TV he used Goldman Sachs as an example of his thesis. That follows:
Pete's Goldman Trade:
Buying GS April 140-Strike Call for $16
Selling GS April 165-Strike Call for $4.40
How Pete's GS Trade Makes Money
Profits Capped $165.00
Profit Above $151.60
Losses Below $151.60
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Trader disclosure: On January 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU), (GS); Najarian Owns (AAPL) Call Spread; Najarian Owns (CTXS) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC) Leap, (BAC); Finerman Owns (BAC) Prefered, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Seymour Owns (AAPL), (BAC), (INTC)
For Tim Seymour:
Seygem Asset Management Owns (FCX)
Seygem Asset Management Owns (TSO)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owns (X)
Seygem Asset Management Owns (PBR)
For Pip Coburn
Pip Coburn Invests In Buckeye Delta Fund
Buckeye Delta Fund Owns (AAPL), (ADBE), (ANSS), (RIMM), Arm Holdings plc, (GOOG)
Buckeye Delta Fund Is Short (NOK), (PALM), (MOT)
For Paul Miller
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (FITB)
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