4 ways to play market volatility

Volatility has ruled markets this week and stocks extended losses to a fourth straight session on Wednesday. The CBOE Volatility Index jumped about 4.5 percent, reflecting investor uncertainty in the current climate.

Choppy trading environments necessitate increased scrutiny, and traders on CNBC's "Fast Money" laid out some of their best protective plays amid high volatility.

"I like to buy options in the names that I already own. I know they're a little bit pumped, but it does give you a sense of exactly how much you have at risk," trader Karen Finerman said.

JPMorgan Chase headquarters in New York.
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JPMorgan Chase headquarters in New York.

She looked at moves in JPMorgan Chase, in which she has taken a long position. Shares fell more than 3 percent on Wednesday after the company reported a decline in fourth-quarter profit.

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Buying stock at the lower price and selling more expensive calls is "an interesting trade," she said. Trader Pete Najarian also made plays in JPMorgan on the price drop. He bought calls in the company and sold an upper strike call on Wednesday.

"I'm using that higher volatility, one against the other, to be able to position in this stock down here at these levels," Najarian said.

Trader Guy Adami stressed taking advantage of volatility. He had previously shied from offshore driller Seadrill, but it has hit levels where he will start to watch for a potential long play.

"I think it's at levels where if you can embrace the volatility, this is worth a look on the long side," Adami said.

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An index-linked play, rather than an individual company, caught trader Dan Nathan's eye. Nathan prefers puts in the PowerShares QQQ Trust, which is linked to NASDAQ 100 companies, over the S&P 500 in the short-term, he said.

Dan Nathan is long TWTR, AAPL Jan 23rd weekly 110/105 put spread, TSLA Feb 210/180/150 putfly, XLU March 48 / 44 Put Spread, QQQ Feb 101/ 95 put spread, XLF Feb 24/21Put Spread, XRT March 90/85 put spread, HD Feb 95/85 Put Spread, DISApril 85/75 put spread, PEP Jan 15 92.50/82.50 Put Spread. Karen Finerman is long BABA, BAC, C, CVS, FINL, FL, FRO, GOOG, GOOGL, JPM, KORS, M, MTW, she is short DIA, her firm is long AAPL, BAC, PLCE, C, CMLS, CVS, DIS,FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, M, MTW, NNA, SUNE, XBI, her firm is long calls FL, M, SUNE, her firm is short USO, DIA, IWM, Karen Finerman is on the board of GrafTech International, today she bought KORS, today her firm bought KORS, M calls, FL calls. Pete Najarian is Long AAPL, BABA, BAC, CSX, DB, EBAY, INTC, JPM, KKR, KO, LLY, LOCO, MRK, ODP, he is long calls AA, AAL, APD, ARCP, BABA, BIC, BBRY, CY, DAL, DD, DNKN, GS,GT, HCBK, IAG, ISIL, JPM, MAS, MCD, MS, PEP, RF, SPY, UAL, WU, XLF, today he bought ODP, BBRY calls, JPM calls. Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck. Brian Kelly is long BBRY calls, he is short HGH5.