Brian Stutland, contributor to CNBC’s Fast Money on Thursdays, touches on the holiday weekend and how to respond to the VIX being at its low point on the year. Brian recommends buying protection to protect against your portfolio. Brian feels although a relief rally in the S&P is possible, it’s time to play defense. He thinks it might be time to buy a Call spread on the VIX to protect your portfolio as the market may have a long way to go on the downside. In regard to the Euro rallying, Brian says he would have expected the market to rally as well, following the trend of the past few months. He thinks it might be time to search for a bottom here in the market because the classic correlation has broken between sell the euro sell the market or buy the euro buy the market.

Hedging Bets in a Down Market

Later in Fast Money,”Spymaster Brian” has a play on the bond market. He thinks it’s time to mitigate risk in a very volatile market. Brian looks at a covered call in the TLT. Here, he suggests adding yield to his portfolio by selling a Sept. 105 call for $1.50 against a long position in the TLT. Here you are taking in the premium plus you are getting the yield. He is more than happy to get called away on his stock as he is in cash and the market will be significantly lower at that time.

Brian’s Play on the Bond Market