Najarian Brothers See Unusual Options Activity In Perrigo And Restoration Hardware

Pete and Jon Najarian spoke on CNBC's Fast Money Halftime Report about stocks that had unusually high options activity on Thursday.

Jon Najarian noticed that somebody bought 5,000 contracts of the March 85 calls in Perrigo CompanyPRGO and sold the March 70 puts to finance the purchase of calls. He decided to follow the trade and get a long position using a bullish risk reversal. Najarian explained that there are rumors that the company could become a takeover target.

Pete Najarian said traders were aggressively buying the March 27.50 calls in Restoration Hardware RH. He owns call options in the name and he is planning to hold a long position for few weeks.