Najarian: Buy this casino stock

Vehicles drive past the New York-New York Hotel & Casino, left, and MGM Resorts International Grand Hotel & Casino in Las Vegas, Nevada.
Andrew Harrer | Bloomberg | Getty Images
Vehicles drive past the New York-New York Hotel & Casino, left, and MGM Resorts International Grand Hotel & Casino in Las Vegas, Nevada.

CNBC "Halftime Report" trader Jon Najarian purchased shares of MGM Resorts International on Friday for his model portfolio after spotting unusual options activity.

The company owns and operates brands such as the Bellagio, MGM Grand, Mandalay Bay and The Mirage in Las Vegas and has a 51 percent stake in MGM China Holdings, which owns the MGM Macau.

In other moves, the trader also sold all of his Red Hat position and sold half of his Skyworks Solutions holding.

Here's why Najarian bought the casino stock.