Pete Najarian Sees Unusual Activity In Merck And Bausch Health

On CNBC's "Fast Money Halftime Report," Pete Najarian said options traders were buying the August $87 calls in Merck & Co., Inc. MRK on Thursday. The stock has to make a move of a couple of dollars very rapidly for the trade to make money, explained Najarian. He added that these calls were trading for 24 cents and he likes the risk-reward.

Najarian has also noticed a very short term activity in Bausch Health Companies Inc BHC. Traders bought 7,500 contracts of the August $17 calls for 45 cents. Najarian likes both names and he thinks they can make that kind of a move in a short period of time.