Pete Najarian Sees Unusual Options Activity In Semiconductor ETF

Pete Najarian said on CNBC's "Fast Money Halftime Report" that he noticed unusually high options activity in VanEck Vectors Semiconductor ETFSMH for the second day in a row.

A trader bought 34,000 contracts of the November 69 puts on Monday. Najarian explained that this trade doesn't look like a hedge. It looks to him that somebody expects some sort of a pull back in the name. In the first half of the trading session on Tuesday, there was a purchase of 7,000 contracts of the August 84 puts for $1. The trade breaks even at $83 or 4.54 percent lower.