Market Overview

Pete Najarian Sees Unusual Options Activity In Rio Tinto


Pete Najarian said on CNBC's Fast Money Halftime Report that there was huge options activity in Rio Tinto plc (ADR) (NYSE: RIO) on Wednesday. He noticed in the first half of the session that traders have purchased 5,800 contracts of the March 47.50 calls for an average price of $1.20.

The trade breaks even at $48.70 or 6.42 percent above the current market price. Najarian decided to follow the trade and he is planning to hold the position for a couple of weeks. He thinks it's better to own calls than shares in Rio Tinto, because it's possible that the stock could pull back after the recent rally and with options traders can only lose the premium that they have paid.

Posted-In: CNBC Fast Money Halftime Report Pete NajarianOptions Markets Media


Related Articles (RIO)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

Bob Evans 20% Surge, Explained

Could Pharmacy Benefit Managers Be Trump's Next Target?