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Halftime—Pete Najarian: Why These Options Are 'Exploding' to the Upside

Wednesday, 2 Feb 2011 | 1:44 PM ET

Oil rose on Wednesday amidst concerns the political unrest in Egypt would spread across the Middle East and North Africa, which is the source of more than a third of the world's oil.

The Oil Services HOLDRs , an exchange-traded fund that tracks oil services names, hit a new 52-week high in trading Wednesday. From the options market, Pete Najarian saw some bullish activity to support the move higher.

Unusual Activity in Solar
With oil prices spiking, are solar stocks finally getting a bid? Fast Money trader Pete Najarian takes a look.

Najarian, co-founder of optionMONSTER.com, noted that institutional traders aggressively bought the OIH Feb. 160 calls on Tuesday. The same activity continued on Wednesday, in addition to heavy buying of the March 46 calls in Haliburton . After reporting profits that beat the Street's expectations, Cameron International also experienced upside buying of the Feb. 55 calls on Wednesday.

Meanwhile, Najarian said solar stocks are rocketing higher. After Goldman Sachs made positive comments about First Solar , the stock popped in trading Wednesday. It also saw active buying of the February options, as did JA Solar and SunPower .

"You're really seeing a theme here," Najarian said. "The oil services and the solar names all exploding to the upside."

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POPS & DROPS

Stock Pops & Drops
The Fast Money traders take a look at todayâ??s biggest market movers.

As stocks fluctuated on Wednesday, the "Fast Money" traders discussed some notable market movers.

To see which names they thought were most interesting, watch the video!

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TICK-BY-TICK

Savvis Up in Trading
Shares of data storage stock Savvis is up sharply in today's session, with the Fast Money team.

Shares of Savvis hit 52-week highs on Wednesday. The stock is up 12 percent since CEO Jim Ousley said Monday he's uncertain whether Savvis will remain independent in another 12 months.

Najarian said speculation on mergers and acquisitions in the cloud computing space continues to create increased options activity. He thinks that will only continue in the near-term.

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CALL THE CLOSE

Before the "Fast Money" traders signed off, they stated where they think the market will go and how they plan to play it.

Brian Kelly, founder of Kanundrum Capital, remains a buyer of oil and agriculture names.

Virtus Investment Partners' Joe Terranova expects some weakness in the euro.

Todd Brown, a trader, is a seller of the Swiss franc on a higher equity market.

Najarian wouldn't read too much into lower volume. He thinks the market could "float" higher.

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Trader disclosure: On Feb. 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova Owns (VRTS); Terranova Owns (C); Terranova Owns (UPL); Terranova Owns (GM); Terranova Owns (PEP); Terranova Owns (MS); Terranova Owns (POT); Terranova Owns (LTD); Terranova Owns (SU); Terranova Owns (CVI); Terranova Owns (CVE); Terranova Owns (CPX); Terranova Owns (CNQ)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (EBAY)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (DBA)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (TER)
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Own (IAU)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own The Yen
Accounts Managed By Kanundrum Capital Are Short the Australian Dollar

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

TODD GORDON
Aspen Trading Group is long the Euro vs the Swiss Franc

JOHN STEPHENSON
Stephenson Owns (POT), (AGU), (MOS), (CF), Corn Futures
Stephenson Is Short (CAG), (PPC)
First Asset Investment Management Owns (POT), (AGU), (MOS), (CF), Corn Futures
First Asset Investment Management Is Short (CAG)

RICHARD GREENFIELD
Greenfield has no disclosures

KEVIN CRISSEY/SOT FROM 2/1/11
KEVIN CRISSEY
Within the past 12 months, UBS AG, its affiliates or subsidiaries has received compensation for investment banking services from (UAL)
UBS AG, it's affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from (UAL), (LCC) in next three months
(UAL) is an investment banking client of UBS Securities within the past 12 months
UBS AG, its affiliates or subsidiaries own 1% or more of a class of (UAL), (LCC) common equity
UBS Securities LLC is a market maker in (JBLU), (UAL), (LCC)
UBS Securities LLC is acting as an advisor to Continental Airlines on its announced agreement to merge with UAL Corp

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CNBC.com with wires.

  Price   Change %Change
CAM
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FSLR
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HAL
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JASO
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MV OIL SVCS
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