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Big Call Buying in Popular Health Care Stock: Najarian

Pete Najarian is always looking for unusual options action. And when he finds something, he can’t keep it to himself.

This time Najarian’s proprietary heat seeker has identified bullish call buying in Pfizer .

“All the way out to December I’m seeing a seller of the December 20 puts and a buyer of the December 24 calls,” he says. “And the volume was quite strong, 33,000.”

That suggests that by the third week in December, institutional investors expect the stock to trade above 24. Also during the same time horizon, they're betting the stock won't break below 20.

“Health care has already run but this trade suggests the run in Pfizer isn’t over yet,” he says.


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Posted by CNBC's Lee Brodie

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Trader disclosure: On July 12, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long SBUX; Mike Murphy is long FB; Mike Murphy is long NAV CALLS; Mike Murphy is long CMI; Mike Murphy is long CHK; Mike Murphy is long CSX; Mike Murphy is long FDX; Brian Kelly is long TLY; Brian Kelly is long SPY PUTS; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long NUE; Guy Adami is long AGU; Guy Adami is long BTU; Guy Adami is long MSFT; Guy’s Wife works at Merck; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MRK; Pete Najarian is long NSC

For Boris Schlossberg
Nothing to disclose

For Eric Jackson
Eric Jacson is long YHOO

For Rick Snyder
Nothing to disclose

For Marci Ryvicker
Wells Fargo Securities, LLC  maintains a market in the common stock of DIS
Wells Fargo Securities, LLC  maintains a market in the common stock of CMST
Wells Fargo Securities, LLC  maintains a market in the common stock of TWC

CNBC.com with wires.