Should You 'Go For It' and Buy Wal-Mart?

If you’re a trader chances are you're wondering how to trade Wal-Mart, after Monday's sharp pullback.

Conventional wisdom suggests the Street went into ‘sell first and ask questions’ later after the New York Times said the company violated the Foreign Corruption Practices Act by paying off Mexican officials who oversaw the company's expansion plans.

That would suggest the dip is a buying opportunity.

However, United States law is among the strictest in the world when it comes to paying bribes to foreign officials. Perhaps these developments make the stock too hot to handle.

What should you do?

Following are strategies from the Fast pros.

Trader Guy Adami is a buyer. "I still think Wal-Mart stock is cheap," he says. "I don't think what happened is a story in terms of the operation of Wal-Mart and what it means for shareholders." In other words, be greedy when others are fearful.

Trader Scott Nations says if you want to take a flier, do it with calls, so you can define your risk. And it may not be so far-fetched to think Wal-Mart is going to rally. "3 calls traded in Wal-Mart today for every put," Nations adds. That may tell you something.

"I pared down my position," reveals Karen Finerman. "A share holder never wants to see something like this; a scandal involving your company on the front page on the New York Times.

“I don’t see how this can be anything but an overhang,” adds Fast Money trader Brian Kelly. He tells us he can’t make any compelling case for pulling the trigger. “You could wake up one morning and find out the story is worse, much worse. I’d just stay far away. There are plenty of other places in retail that you can put money to work.”

Money pro Mike Murphy suggests looking at rivals in the same space.

Last year, in the face of economic weakness, dollar stores won audience away from Wal-Mart. If investors pull money out of Wal-Mart but want to stick with the same theme, that money could go into dollar stores.

“Generally, dollar stores may be a great place to play,” Murphy says.

Pete Najarian says much the same. "I'd play it long Dollar Tree and Family Dollar ."

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Trader disclosure: On Apr 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long HY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long PRST; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long MS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX CALLS; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long WLT; Pete Najarian is short NFLX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long NFLX PUT SPREADS; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM CALLS; Karen Finerman is long HP; Karen Finerman is short AAPL CALLS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY

Mark Mahaney
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of NFLX
The Firm is a market maker in the publicly traded equity securities of NFLX

For Will Power
Robert W. Baird & Co. Incorporated makes a market in the securities of AAPL
Robert W. Baird & Co. Incorporated and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months: AAPL

For Dennis Gartman
Dennis Gartman is long Gold

For Rebecca Patterson
Nothing to disclose with wires.