Jon Najarian’s heat seeker is at it again. And whether you’re an options pro or a regular Joe, you need to hear about the activity it's identified.
According to Najarian, big money institutional investors are starting to make massive bets that the market is sharply higher by year’s end.
In one case, “They bought the December 152 SPY call– that’s a lot of upside,” he says.
Essentially, that’s a bet that the S&P trades at least 1520 by the third week in December.
And the volume associated with the bet is substantial.
“60,000 of the options traded,” he adds. “That’s the equivalent of 6 million shares.”
“And that was with the SPY around 141. That’s huge. Somebody sees a lot of upside and they’re putting a significant amount of money on the table,” he says.
Posted by CNBC's Lee Brodie
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Trader disclosure: On August 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long SPLS CALLS; Mike Murphy is long WFC; Mike Murphy is long HTZ; Mike Murphy is long LNG; Simon Baker is long AAPL; Simon Baker is long JPM; Simon Baker is long WMT; Simon Baker is long AMZN; Simon Baker is long ADSK; Simon Baker is long LNKD; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long C CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT
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