Long calls lock in the entry price investors have to pay to buy the stock. If it goes up even modestly, those options could make a much bigger move. But they also can lose all their value if the shares don't perform.
Broadcom rose 4.14 percent to close at $35.95 yesterday. The company designs and develops all-in-one "system on a chip" technology that enables the delivery of voice, video, and multimedia content.
The activity gave calls a 2-1 edge over the puts in the name yesterday, reflecting the bullish sentiment.
—Najarian owns BRCM shares.
Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.