If you’re looking for trading ideas, Jon Najarian has a few – some based on unusual options action and some based on old fashioned instinct.
First the options based trades.
As the co-founder of Option Monster Najarian learned long ago to keep an eye out for unusual action and his heat seeker has just identified bullish bets in two stocks.
“I’m seeing strong call buying in Weatherford ,” he tells us after the broadcast. They’re buying the January 2013 calls – the 22.5 strike.”
Najarian takes the action as a bet that big investors are looking for oil prices to go much higher over the next 12 months, a thesis with which he agrees. Noting the impact on prices at the pump he says, “I’d like to be wrong about that but I don’t think I am.”
Also DocJ has spotted bullish action in Adobe . “They’re buying the Feb 31 calls and selling the Feb 26 puts.” The time horizon on that trade is much shorter than the one mentioned above. He thinks the gains will come from an agreement between this company and Apple that will make Adobe’s Flash software compatible on Apple devices.