Halftime Report

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

Nobody Doesn’t Like Sara Lee: Options Pro


Always on the prowl for options activity, Jon Najarian has spotted some interesting action in Sara Lee and two other stocks.

Sara Lee

“Nobody doesn’t like Sara Lee,” Najarian tells us with a wink and a grin. The option Monster has spotted an unusual amount of volume in the Sara Lee July 20 calls.

Considering that’s a bet on upside activity 6 months from now – a lifetime and a half for Najarian who moves in and out of positions with the dexterity of a Persian cat - we asked him why the activity was noteworthy.

“I think this is simply a bet on an improving economy,” he replies. "A trade up."

In other words, Najarian interprets action as a bet that frugal shoppers, who have been buying store brands, will treat themselves and instead buy higher priced name brands, such as Sara Lee pies, Hillshire Farms meats etc.

If Najarian's right, that's a trend that has a slew of implications and can inform your trades in many, many ways.


KB Homes

The Option Monster keyed into KB Homes stock after noticing strong interest in the April 9 calls.

Najarian thinks the action is a response to Bernanke’s white paper.

(On Wednesday, Federal Reserve Chairman Ben Bernanke wrote a so-called ‘white paper’ in which he said foreclosed properties should be converted into rental units.)

That's a positive development  for the housing market, broadly, Najarian tells us. Back in November Najarian told us he expected the housing market to bottom. Click here to check out that post.



Najarian says his heat seeker has identified big call buying in the Feb 15 strike in Inhibitex .

Najarian tells us this may simply be a bet that Inhibitex is about to draw a great deal of investor interest as the JPMorgan Health Care conference gets underway next week.  The event is sometimes called the Super Bowl of Health Care conferences with more than 400 companies attending.


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 Jan 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns APC; Terranova owns OXY; Terranova owns XOM; Terranova owns VRTS; Terranova owns IBM; Terranova owns CSCO; Terranova owns AXP; Terranova owns SBUX; Terranova owns CSX; Terranova owns SWN; Terranova owns AXP; J. Najarian owns AAPL; J. Najarian owns AKS; J. Najarian owns BAC; J. Najarian owns PNC; J. Najarian owns GS; J. Najarian owns NFLX; J. Najarian owns MSFT; J. Najarian owns AA; P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long WFC calls; P. Najarian is long NFLX calls; P. Najarian is long MSFT ; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long INTC; Weiss is long EUO; Weiss is short FXA; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Weiss is long EUO; Weiss is short FXA

For Steve Grasso
Stuart Frankel & Co and its partners own CSCO
Stuart Frankel & Co and its partners own CUBA
Stuart Frankel & Co and its partners own GERN
Stuart Frankel & Co and its partners own HPQ
Stuart Frankel & Co and its partners own HSPO
Stuart Frankel & Co and its partners own MU
Stuart Frankel & Co and its partners own NYX
Stuart Frankel & Co and its partners own PRST
Stuart Frankel & Co and its partners own XRX

For Doug Sipkin
Ticonderoga Securities LLC makes a market in (MS) security. Ticonderoga Securities LLC, in its market making capacity, sells to or buys from customers the securities of this company on a principal basis.

For Willie Williams
No disclosures

For Justin Patterson
There are NO disclosures.
Morgan Keegan does not allow its analysts or their immediate family members to hold a position of any kind in the securities of the companies they follow.

For Jason Gursky
Citigroup Global Markets Inc. and/or its affiliates has a significant financial interest in relation to Boeing Co., Goodrich Corp., Lockheed Martin Corp., Northrop Grumman Corp., Precision Castparts Corp., Raytheon Co., Textron Inc.

Citigroup Global Markets Inc. or its affiliates beneficially owns 2% or more of any class of common equity securities of Goodrich Corp.

For securities recommended in the Product in which the Firm is not a market maker, the Firm is a liquidity provider in the issuers' financial instruments and may act as principal in connection with such transactions. The Firm is a regular issuer of traded financial instruments linked to securities that may have been recommended in the Product. The Firm regularly trades in the securities of the issuer(s) discussed in the Product. The Firm may engage in securities transactions in a manner inconsistent with the Product and, with respect to securities covered by the Product, will buy or sell from customers on a principal basis.

CNBC.com with wires.

Related Tags