6 trades ahead of the Federal Reserve meeting

As investors prepare for more erratic market moves ahead of the Fed's policy decision this week, "Fast Money" traders looked to housing and airline stocks to ride out the uncertainty.

"When I look at the overall market, it's value that's underperformed," said trader Tim Seymour, referencing homebuilder stocks.

He pointed to the SPDR S&P Homebuilders ETF, which has risen 8 percent this year on expectations for a continuing housing market recovery. The fund fell about half a percent Monday.

A worker cuts a piece of pipe as he builds a new home in Petaluma, California.
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A worker cuts a piece of pipe as he builds a new home in Petaluma, California.

Trader Steve Grasso outlined riskier moves in KB Home and PulteGroup, two stocks which he owns. KB Home and PulteGroup have lost 12 and 3 percent, respectively, this year.

"You have to believe the whole market goes up to own those," Grasso said.

Read MoreHomebuilders call new labor law ruling crippling

Airlines

Airline stocks have also taken a hit, with Delta Air Lines, United Continental and American Airlines all in negative territory this year. Trader Pete Najarian would look to buy the sector on weakness.

He called Delta the "best in the group," and contended that United holds potential because of its sluggish performance and cheap price.

Read MoreThis airline stock could rally 13%: Technician

Trader Guy Adami, on the other hand, pointed to surging JetBlue, which has climbed 66 percent this year.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, GE, GM, GOOGL, INTC, JPM, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.

Pete Najarian

Long AMAT, BAC, BMY, BP, CSX, DISCA, DKS, FOXA, GE, KKR, KO, LLY, MRK, PEP, PFE, he is long calls AA, AAL, ABX, ALK, BEE, BUP, CRM, CSX, CVC, DAL, ETFC, HIG, HIMX, INTC, LM, MPEL, PFE, QCOM, VLO, XLF, XOM, ZIOP, he is long puts DISH, FCX.

Steve Grasso

Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long BP, CVX, COP, NE, NEM, OXY, RIG, AMZN His kids own EFA, EFG, EWJ, IJR, SPY.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.