Fast Money’s Pit Boss is always trolling for unusual options action and on Friday he spotted some big fish.
According to Pete Najarian the volume of October 15 calls in Weatherford is reason enough to sit up and take note.
”19,000 calls traded in the first two hours of the session,” he says. “It’s an extreme amount of activity.”
Najarian finds the buying impressive because these options expire in only one week. “That suggests institutional investors are looking for plenty of upside within only the next 5 session.”
Trader Patty Edwards sees a fundamental catalyst behind the action. “It’s a name that’s been beaten down a lot. It could be a bet on M&A.”
MOODY'S DOWNGRADES SPRINT
Meanwhile Sprint also landed on the trader radar after Moody's lowered its rating on the company’s debt.
Moody’s also said the rating remains on review for possible further downgrade due to the significant execution risks associated with its network upgrade plans.
What’s the trade?
Jon Najarian thinks the stock is a hold. “I don’t see it as a buy unless it drops to $2.50. But if you’re long – hold and hope there’s good news when they report – I think there may be – I think they benefit from having the iPhone.”
TRADING THE GLOBE - CHINA
China’s consumer price index cooled slightly in September, backing what some economists saw as softening inflation trend that will enable Beijing to push ahead with easier monetary policy.
So how should you trade now?
Find out from emerging markets specialist Tim Seymour. Watch the video now!