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Pete Najarian Sees Unusual Options Activity in Devon Energy And McDermott


Pete Najarian spoke on CNBC's "Fast Money Halftime Report" about an unusually high options activity in Devon Energy Corp (NYSE: DVN) and McDermott International Inc (NYSE: MDR).

Around 3,500 contracts of the November 42 calls in Devon Energy were traded on Friday, said Najarian. Traders paid around $1.30 for them, which sets the breakeven at $43.30 or 8.14 percent above the closing price on Friday. Najarian thinks the stock is going to trade higher and he decided to follow the trade. If the calls double, he's going to take the position off, otherwise, he's going to be waiting at least until the end of the month.

Over 5,000 contracts of the February 20 calls were traded in McDermott International Inc and traders were paying around 90 cents for them. The breakeven for the trade is at $20.90 or 18.34 percent above the current market price. Najarian followed the trade and he's planning to hold the position until February. If the calls double, he's going to close a half of the position.

Posted-In: CNBC Fast Money Halftime Report Pete NajarianOptions Markets Media


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