High Anxiety

With the S&P 500 at record levels and earnings season about to ramp up traders are more nervous than ever. Should you be too?

Stacey Gilbert says the "put call spread" is at a record high. She explains that options activity suggests if the S&P makes an unexpected 10% move, it’s 2 times more likely to move 10% to the downside than the upside.

So you're saying, it’s unlikely that it goes.. but if it does go.. it’s likely down, says Dylan Ratigan.

Pete Najarian tells the panel everyone should have a smile on their face. He feels most of that spread comes from investors who are buying puts for protection. He anticipates more upside in the S&P.

Jeff Macke prefers that expectations are low. He feels if companies can create the illusion that things will be getting better in '08, they can post weak earnings and it will still be net bullish for the market.

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Trader disclosure: On Oct 8, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (VCLK), Najarian Owns (GOOG) Calls: Seygem Asset Management Owns (AA), (AAPL), (EEM), (GLD), (MSFT), (TIE), (CX), (ITU): Stacey Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies; Gilbert Owns (TIE); Susquehanna Financial Group Owns More Than 1% Of (AAPL), (AKS), (BSC), (FCX), (GOOG), (GRMN), (NYX), (PALM), (RIMM); Susquehanna Financial Group Is A Market Maker In (AAPL), (AMZN), (BOBJ), (CSCO), (CTCM), (CETV), (EEM), (EWZ), (EWH), (FXI), (GOOG), (GLD), (GRMN), (MSFT), (PALM), (RIMM), (TRMB), (TLAB), (YHOO)