Najarian Brothers See Unusual Options Activity In Cognizant And Broadcom

On CNBC's "Fast Money Halftime Report", Jon Najarian spoke about unusually high options volume in Cognizant Technology Solutions Corp CTSH. He noticed that somebody bought around 17,000 contracts of the October 62.50 puts, when the stock was trading close to its 52-week high. He believes the trade is a short-term protection from a potential move lower.

Pete Najarian said that traders bought 2,000 contracts of the January 300 calls in Broadcom Ltd AVGO in the first half of the session on Wednesday. They paid $6 for the calls, but they also sold 2,000 contracts of the January 200 puts to finance the trade. Pete Najarian bought the calls and he is planning to hold the position for 2 to 4 months.