Pete Najarian Sees Unusual Options Activity In Melco And Snap

On CNBC's "Fast Money Halftime Report," Pete Najarian spoke about unusually high options activity in Melco Resorts & Entertainment Ltd (NASDAQ: MLCO). The stock traded significantly lower in the last five days, but options traders are buying calls in the name. Around 10,000 contracts of the October $17 calls were traded in the first half of the trading session on Tuesday.

Snap Inc (NYSE: SNAP) was also pretty active. Najarian bought calls in Snap because he noticed that options traders are buying the September 25, $25.50 strike calls. Around 12,000 contracts were traded for 20 cents. He thinks it's going to break out and he is planning to take a half off the table as soon as the value of calls doubles.