On CNBC's Fast Money Halftime Report, Pete Najarian said that there was unusually high call options activity in Alcoa Corp AA on Thursday. Traders bought around 5,000 contracts of the April 36 calls for $1.20 in the first half of the trading session.
The trade breaks even at $37.20 or approximately 4.5 percent above the current market price of Alcoa. Najarian added that he jumped in the trade immediately, because he believes that the materials sector is going to trade higher. He is going to hold the position for 1 to 2 weeks.
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