Kelly liked the potential for growth in aerospace and defense. Despite pressures on government defense spending, some companies in the sector have room to run, he argued.
He cited Lockheed Martin, Rockwell Collins and Alliant Techsystems as plays in the sector.
Dan Nathan is long YUM Feb 72.50/68 put spread, BBRY June call spread, XLF March put spread, XLU March 48 / 44 put spread, QQQ Feb 101/ 95 put spread, XRT March 90/85 put spread and DIS Feb 92.50/87.50 put spread. Today, he bought XLF long March put spread.
Brian Kelly is long BTC=, US dollar, CTRL calls, HYG puts, BBRY call spreads and TLT. He is short EWA, EWG, EWQ, EWZ, EWW, Australian dollar, British pound, Canadian dollar and yuan. Today, he bought GLD.
Karen Finerman is long BABA, BAC, C, DIA, FINL, FL, GOOG, GOOGL, JPM, M, MTW and KORS. She is long calls C. Her firm is long BAC, PLCE, C, CMLS, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, M, MTW, SPY, SUNE, USO and XBI. Her firm is long calls JPM spreads. Karen Finerman is on the board of GrafTech International.
Pete Najarian is long AAPL, BABA, BAC, BMY, DB, JPM, KKR, KO, LLY, LOCO, MRK and PFE. He is long calls AAL, BABA, COP, DAL, DIS, DNKN, EBAY, EWG, FCX, FOXA, GILD, GT, IAG, ISIL, MCD, MRVC, MS, OLN, PEP, RG, SPY, SYY, UAL, WMB, XLE and XLF. He is long puts BHP. Today he bought long calls MS, long calls OLN and long calls WMB.