Option Bulls Return to Kodiak Oil & Gas

Kodiak Oil & Gas saw upside option trading yesterday amid speculation that the company is a takeover target.

OptionMonster's tracking systems detected bullish call buying on Oct. 19, and not long after the stock began to surge. Yesterday upside option action returned to the name as traders bought about 4,000 Feb 7.50 calls for $2 to $2.25 as the stock has ticked up from $9.40 to $9.63. Open interest was only 271 contracts at that strike, so this was fresh buying.

Kodiak Oil & Gas shares rose 3.55 percent on the day to close at $9.62. The shale company's stock rebounded from a 52-week low of $3.59 in early October and has been off the races ever since.

Overall nearly 9,500 calls traded against just 594 puts, a reflection of the bullish sentiment.

—Najarian has no positions in KOG.

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.