Pete Najarian always watches options trading to determine what’s on the move. And the latest action suggests an airline could take off.
Although he says airlines are not an investment, they’re a trade – if you’re nimble he thinks you can play Delta for upside.
“Institutional investors have been rolling out of the Dec 8 calls and into the Jan 9 calls and March 11 calls,” he says. “Considering oil is coming down and capacity is strong, an upside bet makes sense.”
And it’s not the first time that Najarian has spotted this kind of predictive options trading. He says before United Continental and Jetblue moved higher he spotted similar call buying.
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Trader disclosure: On Dec 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; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MH; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Kinahan is long C; Kinahan is long MSFT and short calls; Kinahan has INTC short puts; Kinahan is long YHOO
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