Jon Najarian: RIM, Weatherford and Other Longs for 2012
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.
Research in Motion
Najarian is also bullish on Research in Motion the beleaguered BlackBerry maker, but his enthusiasm isn’t due to options action – this is the trade he’s making on instinct.
He firmly believes RIM is a takeover target.
“It’s a company that’s making money,” he explains. “Shares are trading at 2004 levels but sales are at 2009-2010 levels. And don’t forget the patents.”
He thinks a shrewd CEO will recognize the value and make an offer that RIM can’t refuse. “I think the price will be north of $22 on a takeover.”
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Trader disclosure: On Dec 29, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL call spreads; Najarian is long AKS call spreads; Najarian is long PNC call spreads; Najarian is long RIMM call spreads; Najarian is long DG call spreads; Najarian is long WHR call spreads; Najarian is long MOS call spreads; Najarian is long WFT call spreads; Najarian is long CIGX; Najarian is long CME; Najarian is long CBOE; Weiss owns AAPL; Weiss owns EUO; Weiss owns FXA; Weiss owns QCOM; Weiss owns KO; Weiss owns AMLP; Weiss owns NS; Weiss owns NIHD
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