The financial markets are in turmoil! This week, investors have seen the collapse in share prices for Lehman Brothers (LEH) and AIG (AIG) and a sharp one-day drop of more than 500 points in the Dow. Despite the market chaos, the traders of CNBC’s “Fast Money” have been prepared and have offered up timely advice to their viewers.

The gang has been all over the collapse in the financial stocks. On numerous occasions, the traders advised viewers to stay clear of the sector or even to bet against some of the names that have now plunged to single-digit levels. No matter which way the stock market is trending, the gang is experienced enough to know how to play it.

The gang recently highlighted trading ideas that play off forced hedge fund selling, unfairly punished stocks and the financial winners. Here are some highlights from over the past week as aggregated from the show.

Fast Money’s Hedge Fund Forced Selling Stock Picks: The traders see opportunity in stocks that have been under heavy selling pressure at the hands of hedge funds. On Tuesday’s “Fast Money,” Guy Adami told viewers: “It feels like the hedge funds already blew out of the energy names, and now their valuations look attractive.” Fast Money’s Hedge Fund Forced Selling Stock Picks include Fortress Investment Group (FIG).

Fast Money’s Main Street Trades: Is it time to buy stocks that benefit from “Main Street”? On last Friday’s “Fast Money” show, Pete Najarian told viewers: “I think you should get long Home Depot (HD) and Lowe’s (LOW).” Fast Money’s Main Street Trades include Research In Motion (RIMM) and General Motors (GM).

Fast Money’s Turmoil Trades: The traders revealed some ways to make money when trading in a market environment filled with turmoil. On Monday’s “Fast Money” show, Guy Adami told viewers: “Jefferies (JEF) has been hiring when the rest of Wall Street is firing. They’re getting back to basics, and I think firms that do that will be the ones to survive.” Fast Money’s Turmoil Trades include Wachovia (WB).

Fast Money’s Options Trades: The crew noticed some unusual options activity in a number of stocks. On last Thursday’s “Fast Money” show, Pete Najarian told viewers: “Options volume in the Semiconductors ETF (SMH) Jan. 26 calls suggest it could go higher.” Fast Money’s Options Trades include Intel (INTC) and Kroger (KR).

Fast Money’s Financial Winners: The traders highlighted some financial stocks that they think will be the survivors when the dust clears. On last Wednesday’s “Fast Money” show, Jeff Macke told viewers: “Stick with Ameritrade (AMTD).” Check out Fast Money’s Financial Winners include Knight Capital Group (NITE) and Goldman Sachs (GS).

Fast Money’s Unfairly Punished Stocks: The traders see opportunity in some stocks they think were unfairly punished during Monday’s market plunge. On Monday’s “Fast Money” show, Joe Terranova told viewers: “My strategy is to get diversified. I’d get into consumer staples, healthcare, commodities and even real estate.” Fast Money’s Unfairly Punished Stocks include Amgen (AMGN).

Posted on Sept. 17, 2008