Why Pete Najarian Is Buying Call Options In Bank of America, Cisco, Nvidia And These Under-The-Radar Stocks

Zinger Key Points
  • Pete Najarian says he'd rather buy options than stocks due to the current market volatility.
  • Najarian explains that buying stocks in highly volatile environments often gets him stopped out.

Market Rebellion co-founder Pete Najarian is anticipating more volatility ahead for the markets, but that isn't stopping him from loading call options on stocks with a common theme.

Najarian's Approach: He's seeking out stocks that have been dragged down with the overall markets and are also a bit under the radar.

"They're not necessarily those high target names that everybody is looking at and everybody is so excited about," Najarian said Wednesday on CNBC's "Fast Money Halftime Report."

Here's a look at all of the stocks Najarian bought call options in:

  • Bank Of America Corp BAC
  • Cisco Systems Inc CSCO
  • NVIDIA Corp NVDA
  • Energy Transfer LP ET
  • Livent Corp LTHM
  • Macerich Co MAC

"A lot of those are names that have been pulled down along with others, and maybe undeservedly so," Najarian said. 

He told CNBC that he's buying the options instead of the stocks because of the expected volatility ahead. 

"I don't want to be in the stocks just yet. I don't want to get stopped out. That happens way too often. I'd rather trade the options and know what my risk/reward is for those trades," Najarian said.

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Photo: Paul Wilkinson from Flickr.

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Posted In: Long IdeasOptionsMarketsTrading IdeasCNBCPete Najarian
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