Unusual Options Activity Spotted in Major Conglomerate

Pete Najarian has spotted unusual options action in a major conglomerate. What does he make of it?

According to the proprietary heat seeker used by Najarian at his firm, a larger than usual volume of October 19, 20 and 21 calls have recent traded in Textron – a multi-industry company with total revenue of $10.5 billion about 32,000 employees, and a market cap of $5 billion.

Najarian interpets the action as a signal this stock has the potential to make a sharp move higher.

Looking at fundamentals that could drive gains, published reports sayUnited Technologies has been lining up as much as $20 billion in financing and is currently looking to make an acquisition in the US.

Although several companies are rumored to be on UT's radar, on Friday CNBC’s David Faber reported that according to his sources Tyco was not one of them, as many market pundits had thought.

That makes the short list a little shorter.

”I’d keep an eye on TXT over the next few weeks,” Najarian says, “options investors are definitely looking for upside."




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Trader disclosure: On Sep 16, 2011, 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
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Tavis McCourt
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