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Options Action: Halliburton

Halliburton was one of the biggest losers in the S&P Monday, after the oil service company reported weaker than expected third quarter earnings.

So how do you protect against a further sell off in the space?

Mike Khouw suggests the using options. His trade follows:

***Mike's Trade***
Buy The HAL Nov. 34 Puts @ 1.25
Sell The HAL Nov. 30 Puts @ 0.25

***How Mike’s Trade Makes Money***
Profits 30-33
Losses Above 33

* Learn more about this trade. Watch the video now!



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Trader disclosure: On Oct.18, 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), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman and Finerman’s firm owns (BAC); Finerman and Finerman’s firm owns (JPM); Finerman and Finerman’s firm owns (GOOG); Finerman’s firm owns (IBM); Finerman’s firm owns (MSFT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (AAPL) call spreads; Pete Najarian owns (BAC); Pete Najarian owns (ISLN) call spreads; Seymour owns (AAPL), (BAC), (MON), (GOOG), (POT); Jon Najarian owns (IBM) calls; Jon Najarian owns (AAPL) calls

For Colin Gillis
***No Disclosures***

For Manoj Narang
***No Disclosures***

For Mark Gulley
***No Disclosures***

For Mike Khouw
***No Disclosures***

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