Halftime Report

Monday - Friday, 12:00 - 1:00 PM ET
Halftime Report

Pete Najarian’s Heat Seeker Identifies Hot Airline Trade


Pete Najarian always watches options trading to determine what’s on the move. And the latest action suggests an airline could take off.

Although he says airlines are not an investment, they’re a trade – if you’re nimble he thinks you can play Delta for upside.

“Institutional investors have been rolling out of the Dec 8 calls and into the Jan 9 calls and March 11 calls,” he says. “Considering oil is coming down and capacity is strong, an upside bet makes sense.”

And it’s not the first time that Najarian has spotted this kind of predictive options trading. He says before United Continental and Jetblue moved higher he spotted similar call buying.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to .

Trader disclosure: On Dec 16, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MH; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Kinahan is long C; Kinahan is long MSFT and short calls; Kinahan has INTC short puts; Kinahan is long YHOO

For Greg Salvaggio
No disclosures

For Kena Sena
YAHOO (YHOO): Evercore or an affiliate expects to receive or intends to seek compensation for investment banking services from this subject company

For Toni Sacconaghi
Bernstein currently makes a market in the following companies AAPL / Apple Inc

For Tavis Mccourt
McCourt is long GLD
McCourt is long GOLDCORP
McCourt is long ELDORADO
McCourt is long BARRICK

For Jeff Kilburg
Kilburg is long 10 year treasuries
Kilburg is long 30 year treasuries

CNBC.com with wires.