Should You Play JC Penney for a Bounce?

Developments suggest that JCPenney is getting aggressive in its attempts to contain the company's decline.

According to CNBC's Scott Wapner, Blackstone Group is talking to three private equity firms about investing in J.C. Penney and in discussions with banks about making a $500 million or greater loan to the struggling retailer that would be secured by inventory. (Read More: Blackstone Talking to PE Firms About Investment in JCP: Source)

The moves comes after the JC Penney board made headlines earlier in the week with their decision to part ways with Ron Johnson as CEO.

Considering these significant developments, pros are starting to wonder if it's time to buy the stock.

Mike Murphy, founder and managing partner at Rosecliff Capital, thinks there's a trade however he admits he's not quite ready to pull the trigger. "JCP has held $14 several times," he said. On the next downdraft he'll be watching to see if $14 is indeed a level of strong support. If so, he'll look at making a move.

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Jon Najarian, co-founder also thinks the stock is ripe for a trade. In fact, he's involved in the action already. "I sold the April 14 puts," he revealed. That's a bet that the stock won't trade below $14 by the third week in April.

Stephen Weiss, managing partner at Short Hills Capital fully expects the stock to test $14 in the not too distant future. "In these situations typically a new CEO will scare the crap out of everybody if only to reset the bar lower," he said.

However, if the stock holds $14, all of the Fast traders only see JCPenney as a trade – that is something to buy for the short-term and then sell.

Longer term they see turbulence. "The damage done to the company is probably permanent," said Stephen Weiss. That is, the customers lost to rivals such as Macy's and Kohl's probably won't return anytime soon. "And when that happens you don't want to own a stock long-term."

Trader disclosure: On April 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders; Steve Weiss is long SODA; Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long JNJ; Steve Weiss is long ORCL; Steve Weiss is short BHP; Mike Murphy is long AAPL; Mike Murphy is long JPM; Mike Murphy is long IP; Mike Murphy is long LEN; Jon Najarian is long GRPN CALLS; Jon Najarian is long WAC; Jon Najarian is long CLHX; Jon Najarian is long LPS; Jon Najarian is long NSM; Jon Najarian sold puts in GLD; Jon Najarian sold puts in JPM; Jon Najarian sold puts in JCP; Jon Najarian sold puts in MSFT; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AXP; Joe Terranova is long IBM; Joe Terranova is long SPLK; Joe Terranova is long PANW; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long BBG; Joe Terranova is long TUMI; Joe Terranova is long BK; Joe Terranova is long SWN; Joe Terranova is short Mini SP Futures; Joe Terranova is long Nat Gas Futures