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Halftime—Jon Najarian: Unusual Action in This Stock Deceiving

Thursday, 21 Oct 2010 | 1:43 PM ET

From the options market, trader Jon Najarian spotted some unusual activity in Cree's Nov. 60 callsThursday.

With the increased activity, one might think options investors are betting the stock will push higher. But Najarian doesn't recommend investors get in at current levels.

On Wednesday, shares of the technology company fell to around $47 a share and looked as though it wanted to test the $45 level, said Najarian of optionMONSTER.com.

But on Thursday, takeover rumors helped push the stock back over $50. That didn't hold, but the open interest in Nov. 60 calls is "quite large."

"So even though they were buyers, they quickly sold back out again," he explained. "I look for this thing to trade to about $45. That's where you want to enter. Not here."

Based in Durham, N.C., the semiconductor company develops and manufacturers LED lighting, among other products.

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TRADING AMAZON AHEAD OF EARNINGS

Amazon, the world's largest online retailer, is set to report quarterly earnings results after the closing bell Thursday.

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Tim Boyd, an analyst with MKM Partners, said there are a few key things to listen for in Amazon's conference call. Boyd wants to hear about revenue growth. He said the company also provides year over year unit growth, which is a good indication of how much of each product their selling. Margins is another area he'll be paying attention to during the call.

Watch the video to see the full conversation with Tim Boyd on Amazon.

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CALL TO THE FLOOR: XILINX

Xilinx CEO on Earnings, Outlook
Moshe Gavrielov, CEO of chip maker Xilinx, discusses his company's earnings results and outlook with the "Fast Money" traders.

Xilinx CEO Moshe Gavrielov appeared on the "Halftime Report" Thursday after having reported quarterly earnings results the day before.

Based in San Jose, Calif., the technology name is in the semiconductor industry.

Watch the video to see the full interview with Gavrielov.

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CALL THE CLOSE

Steve Cortes, founder of Veracruz, is long the dollar.

"Buy the dips has worked for the last two months or so," noted Stuart Frankel's Steve Grasso. "I'm still sticking with that."

"Price action is scaring me here," countered Guy Adami, managing director of Drakon Capital. "I think you might want to take profits. Sell."


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Trader disclosure: On Oct. 21, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Cortes is short crude oil; Cortes is short gold; Cortes is short (BIDU); Cortes is short (RSX); Cortes is short the U.K. Pound; Cortes owns U.S. Treasuries; Cortes owns the S&P 500; Jon Najarian owns (AMZN) calls; Jon Najarian owns (CAT) calls; Jon Najarian owns (EBAY) calls; Jon Najarian owns (GS) calls; Jon Najarian owns (MCD) calls; Jon Najarian owns (NFLX) calls; Jon Najarian owns (SNDK) calls; Jon Najarian owns (CREE) call spreads; Jon Najarian owns (NTRI) call spreads; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (OPEN)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

For Tim Boyd
***No Disclosures***

For Jason Helfstein
Oppenheimer & Co. Inc. makes a market in (NFLX)

CNBC.com with wires.

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