NEW YORK (TheStreet) -- The S&P 500 finally started to pull back on Tuesday, closing lower by 0.50%.
On CNBC's "Fast Money" TV show, the trading desk was talking about General Motors (GM), the subject of a new federal criminal investigation of GM's recall of1.6 million vehicles for defective ignition switches.
Karen Finerman, president of Metropolitan Capital Advisors, said she is long GM and does not like this news. However, she said management should confront the issue and try to put it behind the company as soon as possible.
Jon Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the strong put option buying, signaling investors are nervous of further losses. He thinks shares could decline to the January lows near $30.
Steve Grasso, director of institutional sales at Stuart Frankel, said investors could start to buy GM near current levels. He suggested using a stop-loss at $33.
Brian Kelly, founder of Brian Kelly Capital, said investors who are already long GM should look for a pop up towards $37 and then sell out near those levels.
Tesla Motors (TSLA) will not be allowed to make direct sales to customers in New Jersey, which will certainly hamper sales in the region. Ben Kallo, senior analyst at R.W. Baird and a guest on the show, said New Jersey is joining only a few states in the U.S. that currently restrict direct sales to customers. He still thinks the stock is a buy on pullbacks since it will only affect a very small amount of sales.
Kelly, who is long the stock, said he is remaining long. He added that if he were not already long the stock he would buy at current levels. Grasso suggested that many investors are buying the stock for Tesla's Gigafactory and will not worry about this news.
Based on options activity, Najarian thinks Tesla may be headed to $225, where it could catch some support.
Kelly said he covered his short position in copper.