Najarian Brothers See Unusual Options Activity In Encana And Cabot Oil & Gas

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On CNBC's Fast Money Halftime Report, Pete Najarian spoke about unusually high bullish options activity in Encana Corp (USA) ECA.

He explained that a week and a half ago options traders bought 10,000 contracts of the October 10 calls and now they are buying the January 10 calls. Around 12,000 contracts of the January 10 calls were traded at $0.95. The breakeven for the trade is at $10.95 or 15.5 percent from the current stock price.

Jon Najarian spoke about unusual options activity in Cabot Oil & Gas Corporation COG. He noticed that traders were buying the January 25 calls and the January 27 calls. He explained that the normal volume for the January 25 calls is 1,600 contracts per day and on Thursday 4,000 contracts were traded in the morning session. Najarian added that this is a pretty big bet that the stock is going to move considerably higher over the next three months.

Posted In: CNBCOptionsMarketsMediaFast Money Halftime ReportJon NajarianPete Najarian
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