Lee asked the panel for some downside-protection ideas after a robust April. Najarian said he's seen heavy activity in downside puts in the Industrial SPDR(XLI) from some people who want to have some protection in place in May.

Najarian said the same downside put strategy is being employed with the Discretionary SPDR(XLY) which 55,000 downside puts purchased Wednesday.

Options action in the XHB (XHB) September 17 calls suggests to me big investors are betting on stabilization in the housing sector, perhaps on Bernanke’s comments. Also I noticed a late day surge in copper, again a potential reaction to Bernanke’s testimony. - Guy Adami

I like Discover Financial Services (DFS). They’ve underperformed as compared to their peers. And options traders are buying the May-10 calls which suggests this stock could move higher. - Pete Najarian