Why Pete Najarian Just Swapped Amazon Call Options For Apple

The overall market is trading lower Tuesday, but Amazon.com Inc AMZN is moving higher as investors anticipate the Rivian RIVN IPO.

Market Rebellion co-founder Pete Najarian took advantage of Amazon shares trading higher by exiting his call options.

"We've seen Amazon go from $3,200 to $3,500 pretty quickly," Najarian said Tuesday on CNBC's "Fast Money Halftime Report."

Despite underperforming the overall market over the last year, Amazon makes pretty rapid moves to the upside from time to time, Najarian said.

"Part of the reason that I took that position off had more to do with the idea that 'OK, I got good results, now I got to get out,'" he said.

Time plays a big role in the options market, so you have to pay attention to the opportunities and get in and out accordingly, Najarian said. There are times when "they give you that opportunity to get in and that's what I've been trying to do."

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Opportunity In Apple? Najarian thinks one of those opportunities is in Apple Inc AAPL. He bought the $155 strike Apple call options that expire in December.

Najarian said he noticed unusual call buying activity at the $150 strike over the past week or so and then saw heavy call buying Tuesday at the $155 strike expiring in December.

"I actually think going into the end of the year that we're going to see a name like Apple start to move to the upside once again and maybe we start pushing toward $160," Najarian said. "We'll see, but that's what the options are telling us right now."

AAPL Price Action: Apple has traded as high as $157.26 and as low as $112.59 over a 52-week period.

The stock was up 0.27% at $150.84 at time of publication.

Photos: courtesy of Amazon and Apple.