Heat Seeker IDs Unusual Action in White Metal

Once again, Pete Najarian’s proprietary heat seeker has identified unusual options action, and he thinks the activity could forecast a future advance.

As a result Najarian has silver on his radar – specifically the ETF that tracks silver . “In the SLV, calls are trading at a 2 to 1 ratio over puts," he says.

Looking at the action a little more closely he says, “The Jan 32 and Jan 33 were extremely active. Also, “Feb 31 thru Feb 35’s are also active."

Najarian takes the action as a sign that although the SLV has already made sharp gains, institutional investors think the metal has more room to run.

But this is a trade, not an investment. "They're looking short term those institutional buyers, but they're expecting more."

* You can find our full conversation with Najarian at the beginning of this video clip.

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Trader disclosure: On Jan. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long SU; Terranova is long SJM; Terranova is long BRCM; Terranova is long MUB; Terranova is long EMC; Terranova is long F; Terranova is long SBUX; Terranova is long V; Terranova is long AXP; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long JNPR; Terranova is long CSCO; Terranova is long WFM; Terranova is long XOM; Terranova is long UNG April $5 puts; Finerman is long (JPM); Finerman is long (BAC); Finerman is long (PLCM); Finerman is long (IBM); Nathan is long AAPL Jan puts; Nathan is long BAC Jan puts; Nathan is long MS Jan puts; Nathan is long NFLX Jan calls; Nathan is long INTC Jan put spreads; Nathan is long MSFT puts; P. Najarian is long AAPL; P. Najarian is long BAC calls; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long MSFT; P. Najarian is long INTC; P. Najarian is long JCP

For Karen Finerman
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Finerman's fund is long (JPM)
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CNBC.com with wires.