'These Are Big Fund Managers That Are Coming In': Why Pete Najarian Bought Meta, AMD And Microsoft Call Options

Zinger Key Points
  • Pete Najarian says someone bought 50,000 AMD calls at the $120 strike, expiring this week
  • Najarian has been seeing particularly "huge" volume in Meta, with traders piling into the $220 strike calls

The stock market staged a recovery last week and looks primed to continue on its upward trajectory. Investor sentiment may be starting to shift as Market Rebellion co-founder Pete Najarian is seeing optimism in the form of options contracts. 

"We're seeing incredible option paper in a lot of different things," Najarian said Tuesday on CNBC's "Fast Money Halftime Report."

What To Know: He told CNBC he bought upside call options in Meta Platforms Inc FBAdvanced Micro Devices Inc AMD and Microsoft Corp MSFT after seeing bullish buying activity in each of the names.  

Najarian has been seeing particularly "huge" volume in Meta after everyone seemingly avoided the stock when it traded below $200. Traders are piling into the $220 strike calls, he noted.

See Also: Facebook Parent Meta Employees Seek Greener Pastures Post Stock Meltdown

"We are seeing huge sized trades across the board," Najarian emphasized. 

Someone bought 50,000 AMD calls at the $120 strike, expiring this week, he said. There's also large call buying in Microsoft, but traders are opting for more time on those contracts, he noted. Someone bought a huge block of the $320 strike calls expiring in April, he added. 

Why It Matters: "So it gives you a little bit of an example of what we're seeing, the kind of volumes that we're seeing, these sized trades that are coming in," Najarian said. "These are not mom and pop [traders] ... these are big fund managers that are coming in."

He noted that he also picked up calls in Apple Inc AAPLAlibaba Group Holding Ltd BABA and Walmart Inc WMT.

"You've got to be a participant," Najarian said. "This is where the money is made and it's being made now."

FB, AMD, MSFT Price Action: At publication time, Meta was up 2.42% at $216.60, AMD was down 1.11% at $114.64 and Microsoft was up 1.35% at $303.17.

Photo: 6689062 from Pixabay.

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Posted In: Long IdeasOptionsMarketsTrading IdeasCNBCPete Najarian
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