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 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 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.