A big week for Chicago Bridge and Iron but options expert Jon Najarian saw the drop coming from a mile away.
The construction and engineering firm saw its stock (CBI) jump after a judge ruled potential liabilities against the company could not exceed $100 million dollars. Westinghouse was suing Chicago Bridge and Iron for $2 billion.
(as of Monday's close)
Shortly after that news, an analyst at Wells Fargo upgraded the stock to outperform.
The stock started the week at $14 a share, by Thursday it had surged to $21.50.
That's when Jon Najarian started to see some unusual activity in the stock. He called at least a short-term top. Today the stock tanked almost seven percent.
"Doctor J" started to see some warning signs for the fast run-up on Wednesday. He said on the Halftime Report, "somebody's probably getting nervous about the big run the stock has had and is getting into calls right here."
He was right.
That was near the top for the stock.
Today it tumbled, down seven percent into the close trading in the $20 range.