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Finerman's Prop Trade

Walmart is taking its ferocious price cutting into new markets as the all important holiday season approaches..

Last week, Walmart.com cut prices on 10 yet-to-be- released hardcover books to $10 each, igniting a price war with online giant Amazon.com.

Then both online retailers cut their prices on those highly anticipated books to $9 each.

But it doesn't stop there. Late on Friday Walmart.com shaved a penny off that price and was selling titles such as Sarah Palin's "Going Rogue: An American Life" for $8.99 each -- discounts of nearly 60 percent or more off the cover price.

Walmart.com CEO Raul Vazquez says its aim is to be the biggest and most valued online retail site.

What’s the trade?

Clearly the promotion is a loss leader intended to to drive traffic onto their site, says Karen Finerman.

But the loser here seems to be Barnes & Noble . I’m short this company through puts. I think this is the beginning of more trouble for this company. We already know the e-reader is generating challenges for them. This price war can not be a good thing.


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Trader disclosure: On October 19, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (RIG), (PDE); Finerman's Firm Owns (MSFT), (NOK), (TJX); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spread, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BBT) Puts; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm And Finerman Own (WMT); Finerman's Firm Owns (BKS) Puts; Finerman's Firm Is Short (USO), (IJR), (MDY), (SPY), (IWM), (UNG); Najarian Owns (GE) Calls; Najarian Owns (HGSI) Call Spread; Najarian Owns (POT) Call Spread; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (WFT) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Terranova Owns (HES), (HOC), (SUN)

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