Why Pete Najarian Bought Calls In ARK Innovation ETF

On CNBC's "Fast Money Halftime Report," Pete Najarian said he bought calls in ARK Innovation ETF ARKK because these triple-digit and quadruple-digit type names, in terms of price to earnings multiple or names that don't have positive earnings, have been cut in half and more. He sees that as an opportunity to take a closer look and trade these stocks.

He doesn't own ARK Innovation stock, he owns calls, which gives him an opportunity to participate on a potential upside with limited downside risk.

Najarian also bought Coinbase Global Inc COIN calls on Monday. He noticed significant options volume in the name last week. He doesn't want to own Coinbase shares long-term because he prefers trading it around using call options.