Jon Najarian Sees Unusual Options Activity In Kohl's And Lululemon

On CNBC's Fast Money Halftime Report, Jon Najarian spoke about bullish options activity in Kohl's Corporation KSS. He said traders were buying the May 42.5 calls and they were selling puts to finance the purchase. Najarian believes the stock is going to trade higher into the earnings and he decided to follow the trade. He is planning to hold the position for two to three weeks.

Najarian also noticed bullish activity in Lululemon Athletica inc. LULU. He said that short-term options traded significantly higher on private equity rumors. He has a long position in the name.