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Hot Stock: Jon Najarian’s Heat Seeker Signals Buy


OptionMonster Jon Najarian is always looking for opportunity. And his heat seeker has just signaled a buy.

Najarian tells us he’s seeing a big block of calls trading in Ultra-Petroleum . “The September 26 calls,” he says, “have been extremely active.”

That’s a bet that the stock trades above $26 by the third week in September.

And after the broadcast he tells us he sees every reason to follow the options action into the stock. “I do think it could push into the mid-20’s, at least,” he says.

Trader Steve Grasso confirms the thesis.

“Many pros are underweight energy,” he explains. If the economy is even slightly better than expected, PMs many find themselves chasing energy names such as this one.

Posted by CNBC's Lee Brodie

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Trader disclosure: On August 10, 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 YHOO; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long FIO; Pete Najarian is long UPL CALLS; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TG; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU

For Brian Nagel
A member of the household of an Oppenheimer & Co. Inc. research analyst who covers this company has a long position in JCP.

For Matt Fruhan
Nothing to Disclose

For Brian Wieser
Pivotal Research Group LLC is an independent equity research company and is neither a broker dealer nor offers investment banking services. Pivotal Research Group LLC is not a market maker for any securities, does not hold any securities positions, and does not seek compensation for investment banking services. The analyst preparing this report does not own any securities of the subject company and does not receive any compensation directly or indirectly from investment banking services

For Steve Weiss
Steve Weiss is short JCP

For Mike Murphy
Mike Murphy is long MANU

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