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Fast Action: Protect and Profit

Considering the sharp sell-off this week, how can you protect and profit if the market resumes its march lower?

Mike Khouw of Cantor Fitzgerald has a few suggestion.

He recommends trading options in the GLD – the gold ETF.

With the GLD around $103, Khow suggests:
- Buying April 100-Strike Put for $3.00
- Selling April 95-Strike Put for $1.50

How Mike's GLD Trade Makes Money
Losses above $98.50
Profits Below $98.50
Profits Capped $95.00

Confused? Learn more about Khouw’s trade. Watch the video now!


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Trader disclosure: On February 5th, 2010, 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), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (PFE); Najarian Owns (QCOM) Call Spread; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (IWM), (SPY), (MDY), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (MSFT), (TGT); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Owns (BAC), (JPM), (OIH), (GOOG), (EMC), (AAPL), (DELL), (MSFT)

For JoeTerranova

Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Will Landers
BlackRock Latin America Fund Is Long (PBR)
BlackRock Latin America Fund Is Long (ITUB)
BlackRock Latin America Fund Is Long (VALE)
BlackRock Latin America Fund Is Long (AMX)

For David Bank
RBC Capital Markets Or Affiliate Managed Or Co-Managed A Public Offering For (DIS), (DISCA) In Past 12 Months
RBC Capital Markets Or Affilaite Received Investment Banking Compensation From (DIS), (DISCA) In Past 12 Months
RBC Capital Markets Is Providing (DIS), (DISCA), (IPG) With Non-Securities Services
RBC Capital Markets Has Provided (DIS) With Investment Banking Services In Past 12 Months
RBC Capital Markets Has Provided (DIS), (DISCA), (IPG) With Non-Securities Services In Past 12 Months

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (GILD)

Other Relevant Disclosures:
Finerman's Firm Owned (PLCE) On 1/29/10
Finerman's Firm Owned (MSFT) On 1/27/10
Najarian Owned (BG) Call Spread On 1/5/10
Terranova Owned (BAC) On 1/19/10


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