Pete Najarian Saw Unusual Bullish Options Activity In Staples
Stock of Staples, Inc. (NASDAQ: SPLS) was on the rise Tuesday. After opening flat, the stock suddenly started moving up at around 12:30 p.m. in the afternoon and by 2:00 p.m. was trading 3 percent higher. It's also worth to note that this rise is coming in the back of a spectacular month for Staples in which it shares rose by more than 10 percent.
Pete Najarian discussed on CNBC the unusual bullish activity being seen in Staples’ options and also elaborated on how and why he is playing it.
"On November 12, we had some unusual activity in the calls and that was really interesting […] There November 14 calls were bought, stock was trading $13, stock went to $14. Now, today we are seeing the December 15 calls being bought and they are being bought in a big way. There was about 3,000 open interest coming in, about 3,100. Over 6,000 traded in the first couple of hours of the trading session. I keep an eye on these, nice cheap shots, they are buying them for $0.20, looking for the upside, looking for Staples to maybe break-up through that $15 level. They are on their way right now, this thing is already on the move today," Najarian said.
When asked if he has taken the trade, Najarian said, "I am in. As soon as I saw these that worked last time, whenever I find a trade that somebody before was very smart, they went back into the trade, this looks like the same trader coming back once again. I jumped in with him."
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