If you’re a trader who believes that options action can predict a big stock move, there are three names you should know about.
Oracle
Jon Najarian’s proprietary software has identified a lot of buying activity in the 25 strike and 26 strikes in Oracle.
“I don’t know what turned it, technicals or fundamentals – but some big people like the stock here for upside,” he says. “My gut is that people think it’s just too cheap,” he tells us.
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Dendreon
“66,000 options – 6 times normal volume – call buying at the Jan 12 strike in Dendreon ; that’s what you need to know,” Najarian tells us after the broadcast.
He thinks the move is based on more doctors going forward with the company’s expensive but effective treatment for advanced prostate cancer, a drug called Provenge. “Also Goldman put out a positive note,” he adds.
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OmniVision Technologies
Also after the broadcast, Najarian tells us that he's spotted a larger than usual volume of June 14 calls trading in Omnivision .
“Market chatter that had suggested Apple was replacing chips made by Omnivision with those made by Sony may not be correct,” speculates Najarian. “That’s probably the bet here.”
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Trader disclosure: On Jan. 5, 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 call spreads AAPL; Najarian is long call spreads BAC; Najarian is long call spreads C; Najarian is long call spreads JPM; Najarian is long call spreads ORCL; Najarian is long call spreads DNDN; Najarian is long call spreads PNC; Najarian is long call spreads FDO; Najarian is long call spreads DLTR; Najarian is long call spreads DG;
Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long ORCL
Trutina Financial is long GLD
Trutina Financial is long TAL
Trutina Financial is long COST
Win Thin
Brown Brothers Harriman makes a market in the Euro dollar.
Nishu Sood
DR HORTON - Deutsche Bank owns 1% or more of this company and has received non-investment banking related compensation from this company within the past year.
MDC HOLDINGS - Deutsche Bank owns 1% or more of this company.
Clayton Moran
The Benchmark Co., LLC analyst(s) whose name(s) appears on the front page of this research report certifies that the recommendations and opinions expressed herein accurately reflect the research analyst's personal views about any and all of the subject securities or issues discussed herein. Furthermore, no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the research analyst(s) in this research report.
Colin McGranahan
Bernstein currently makes a market in the following companies BBBY / Bed Bath & Beyond Inc, COST / Costco Wholesale Corp, SPLS / Staples.
The following companies are or during the past twelve (12) months were clients of Bernstein, which provide non-investment banking-securities related services and received compensation for such services LOW / Lowes, TGT / Target Corp.
In the past twelve (12) months, Bernstein or an affiliate managed or co-managed a public offering of securities of DG / Dollar General Corp.
In the past twelve (12) months, Bernstein or an affiliate received compensation for investment banking services from DG / Dollar General Corp.
In the next three (3) months, Bernstein or an affiliate expects to receive or intends to seek compensation for investment banking services from DG / Dollar General Corp.
Aaron Rakers
Stifel, Nicolaus & Company, Inc. makes a market in the securities of Western Digital Corporation. Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from Western Digital Corporation in the next 3 months. Stifel, Nicolaus & Company, Inc. makes a market in the securities of Seagate Technology, Inc.. Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from Seagate Technology, Inc. in the next 3 months. Seagate Technology, Inc. is provided with non-investment banking, securities related services by Stifel, Nicolaus & Company, Inc. or an affiliate or was provided with non-investment banking, securities related services by Stifel Nicolaus or an affiliate within the past 12 months.
Andy Hargreaves
Pacific Crest makes a market in the shares of Apple Inc.
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