Jon Najarian Likes BRCD, CY

OptionMonster's co-founder Jon Najarian is looking at Brocade Communications Systems, Inc. (NASDAQ: BRCD). He thinks that after a deal like Hewlett-Packard 's (NASDAQ: HPQ) acquisition of 3Com (NASDAQ: COMS), other candidates tend to get sold off. Investors sometimes oversell and Jon Najarian hopes to get BRCD on the pullback.

He is also watching closely a strong options activity in Cypress Semiconductor Corporation (NYSE: CY). Jon Najarian thinks that investors are betting that CY could be a next takeover target.

BRCD is down 12.65% today, and CY added 2.79% so far. They trade at $9.21, and $8.05 respectively.