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Unusual Call Activity Is Buy Signal: Najarian


Pete Najarian’s proprietary heat seeker is at it again. And the call activity it’s identified he sees as an opportunity.

Najarian tells us he’s seeing big volumes of August calls trading in Sprint, especially at the 5-strike.

That’s a bullish bet that Sprint will be trading higher by the third week of August.

And after the broadcast Najarian tells us although he prefers playing the thesis with options, if you’re a retail investor who only trades stocks, he'd consider the activity a buy signal.

“In the first half hour they traded over 34,000,” he says. “That’s huge volume.” You can't ignore something like that.

The bet may be technical - the stock is trading at 52-week highs and options investors may be expecting a break out.

The enthusiasm may also have something to do with an executive departure. The head of strategic planning, Keith Cowan, is leaving the wireless carrier by the end of next month.

According to reports, his tough dealmaking style in recent years had ruffled feathers on Wall Street and in the telecommunications industry.

FMHR Top Three Trades

Whatever the catalyst, Najarian says if you're a trader it doesn't matter. What does matter is that the path of least resistance appears to be higher.

Posted by CNBC's Lee Brodie

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Trader disclosure: On August 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long M; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long EMR; Stephanie Link is long DD; Stephanie Link is long BRCM

For Darren Chervitz
Darren Chervitz is funds long AAPL
Darren Chervitz is funds long YHOO
Darren Chervitz is funds long SINA
Darren Chervitz is funds long LOGM
Darren Chervitz is funds long EXPE

CNBC.com with wires.