Trade Options 'Like an Insider' (Legally)

Tuesday, 18 Dec 2007 | 12:40 PM ET

You can legally trade options "like an insider" -- if you stay alert and watch market momentum. Jon Najarian, co-founder of OptionsMonster.com and frequent guest on CNBC's "Fast Money," offered his wisdom on how to play -- and which options look the hottest right now.

Options Action
A look at your options, with Jon Najarian, OptionMonster.com co-founder; Jacob Frenkel, Shulman, Rogers, Gandal, Pordy & Ecker, P.A. partner and CNBC's Joe Kernen

Najarian said options buyers are constantly "catching falling knives" and risking downward stock movement to seize opportunities. One tip-off for investors: "Watch unusual buying going into the weekend."

Najarian noted interest in biotechnology firm Amgen, with traders "buying aggressively for an April timeframe."

He named AFML, a Netherlands-based chip maker, which has seen heavy put options -- for both January and April.

He likes Newmont Mining, an "aggressive buy" at a March call strike. The gold miner's stock has dropped $10 and "the dollar rally hurt them," he noted -- making for opportunity.

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