Pete Najarian Sees Unusual Options Activity In Kroger

On CNBC's Fast Money Halftime Report, Pete Najarian spoke about unusually high options activity in Kroger Co KR. He noticed that traders were buying the November 30 calls on Monday.

About a week and a half ago, traders bought around 4,000 contracts of the November 30 calls and on Monday they bought another 6,000 contracts. Najarian decided to follow the trade and he is planning to hold the position for a month. He is encouraged by the call purchase, while the stock is trading at its lows.

Related Link: Kroger Could Unleash A Handful Of Value Drivers Very Soon

Najarian added that Morgan Stanley came out with the note that says that Kroger has a lot of unlocked value potential in its concept stores.

Joe Terranova commented that he loves the trade and he is thinking about buying the stock. He added that Morgan Stanley has a price target of $40 for Kroger.