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Traders look for risk-reward in retail

The "Fast Money" traders debated whether opportunity still exists in the retail sector as the key ETF gained about 1.5 percent on Friday.

The consumer looks pretty good in the current environment, said trader Karen Finerman, who said she is long Foot Locker and Michael Kors.

"Employed, low gas prices, stable housing prices, low mortgages — it's about as good as you can hope for," she said, adding that she thinks "the risk-reward here is attractive."

Trader Brian Kelly said that while he is more bullish on oil prices, which would lead to a weaker consumer, if he had to pick stocks in the retail sector, he would pick the more beaten down companies like Macy's.

Trader Guy Adami said that Nike might be another attractive option for investors looking for risk-reward.


Disclosures:

BRIAN KELLY

Brian Kelly is long Bitcoin, CME, DXJ, GDX, KBE, SLV, TLT, XOP, WTI, US Dollar UUP. He is short the euro and the Japanese yen.

KAREN FINERMAN

Karen is long AAL, BAC, C, DAL, long DB calls, short DB preferred, FB, FL, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.

DAN NATHAN

Dan Nathan is long TWTR, long PYPL oct call, long FEZ Nov put spread, long EEM Nov put spread, long XHB Jan put spread, long XLK Jan put spread, long XLU Dec call spread.

GUY ADAMI

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