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Traders: Here's how we're playing the seasonality in the sneaker stocks

The "Fast Money" traders debated how to trade athletic apparel stocks like Under Armour, Nike and Dick's Sporting Goods, which all ended the week down more than 2 percent.

Trader Brian Kelly said he would "never bet against Kevin Plank," founder and CEO of Under Armour. However, he said that the stock, which closed at $37.22 on Friday, is a little expensive here. The level to watch is $32.50 because "that's a better support level," according to Kelly.

Trader Tim Seymour said that Nike is "one of the greatest global, secular strength stories" and that it really "dominates the industry even though there's a lot of competition." He said that although Under Armour has "come out of nowhere" and that Plank has "done a great job," he'd rather be long Nike and short Under Armour.

Seymour added that, to him, Dick's "isn't even in the running" because it's suffering from the same headwinds as the rest of the retail sector.

Trader Steve Grasso said he likes Under Armour for a seasonality trade. He said that the stock has historically been up 7 percent in June, 11 percent in July, whereas Nike is down 2 percent in June and up 2 percent in July.

The Nike Inc. logo is displayed at the entrance to the company's store in the East Nanjing Road shopping area of Shanghai, China.
Tomohiro Ohsumi | Bloomberg | Getty Images
The Nike Inc. logo is displayed at the entrance to the company's store in the East Nanjing Road shopping area of Shanghai, China.

Disclosures:

Guy Adami

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

Steve Grasso

BA CC EVGN KBH MJNA MU OLN PFE PHM T TWTR UA GDX KIDS own EFA EFG EWJ IJR SPY. Grasso currently has no short positions. Stuart Frankel & Co Inc. and some of its Partners: CAH DAL LUV HLT AAPL TOL UAL WHR LDP WDR AVP CVX FCX IBM ICE KDUS KO MAT MCD MJNA NE NEM OLN OXY RIG STAG TAXI TEX TITXF URI VALE WDR WYNN ZNGA CUBA HSPO ICE AMZN MJNA TITXF NXTD

Brian Kelly

Brian Kelly is long Bitcoin, GLD, SFK, SLV, TLT, US Dollar UUP. He is short CS, DB, UBS

Tim Seymour

Tim Seymour is long AVP, BAC, BBRY, CLF, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. Tim's firm is long ABX, BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM, WYNN, XRT