Stocks suffered Monday to start 2016, but "Fast Money" traders saw opportunities in the slide.
Major U.S. averages fell more than 1.5 percent, following global stocks lower after a sell-off in China. Geopolitical concerns also weighed on equities.
Still, traders believe some appealing plays exist under the surface.
Financials: "I think this is a place where there's opportunity," said trader Tim Seymour of the financial sector.
He cited a "fundamental change" in the yield curve. He looked to the Financial Select Sector SPDR Fund, which fell Monday with broader markets.
Utilities: Trader Dan Nathan would look to limit exposure outside the United States and make "defensive" moves. He pointed to the Utilities Select Sector SPDR Fund, which closed Monday 0.2 percent lower.
Telecom: Nathan also likes U.S. telecom stocks. He contended that AT&T and Verizon would make strong buys, particularly because of their dividend yields.
Macy's: Seymour sees upside in some stocks that were "banged up" in 2015. He pointed to shares of department store Macy's, which have plunged 45 percent in the last year.
Trader Guy Adami added that Macy's "traded exceptionally well" Monday, climbing more than 2 percent higher.
Pfizer: Nathan contended that large-cap pharmaceutical companies like Pfizer could make a strong play in a choppy market. The stock fell 1 percent Monday.
Whole Foods: Trader Karen Finerman said that shares of grocer Whole Foods look "interesting." The stock has also suffered recently, falling more than 30 percent in the last year.
Occidental Petroleum: Shares of energy company Occidental Petroleum — which have fallen 16 percent in the last year — also look to have upside, Seymour said.
Disclosures:
Tim Seymour
Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JCP, JPM, KO, LGF, RL, T, TWTR, VRX. Tim's firm is long BABA, BIDU, MCD, NKE, SBUX, YHOO.
Dan Nathan
Long MCD Feb Put Spread, Long PFE buy-write, Long TWTR March Risk Reversal, Long UUP March call, Long XLU Feb Call spread, Long PYPL Jan Risk Reversal, Long M Jan16 call spread, Long NTAP Jan risk reversal, Long Len Jan Put Fly, Long QCOM feb calls, Short SPY, Long UUP
Karen Finerman
Karen is long BAC, C, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, SEDG, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, FL, FL calls, GOOG, GOOGL, JPM, KORS, LYV, M, MA, MOH, PLCE, URI, URI long puts, WFM, her firm is short IWM, MDY, SPY. Karen Finerman is on the board of GrafTech International.
Guy Adami
Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.