Pete Najarian buys underperforming drug stock

Bristol-Myers Squibb R&D headquarters.
John Greim | LightRocket | Getty Images

CNBC "Halftime Report" trader Pete Najarian bought shares of Bristol-Myers Squibb for his model portfolio on Wednesday after some unusual options activity caused him to look into the prospects for the drugmaker.

"I love the innovation. I love the strategic partnerships they've made," Najarian said on how the pharmaceutical giant is positioned for the years ahead. "I think it's an incredible pipeline going forward."

Shares in Bristol-Myers are down 9 percent this year. Apart from scooping up the stock for the competition, the trader also bought call options in the portfolio he manages in real life.

Separately on Wednesday, Jon Najarian took profits in Devon Energy and sold half of his position in Energy Transfer Partners. The trader also closed out of his position in Rio Tinto, after the stock failed to move meaningfully, he said.

Watch the video below to find out more about Pete Najarian's buy.