Najarian Brothers See Unusual Option Activity in $CLF, $XOM and $EWZ

On today’s CNBC Halftime Report, Jon and Pete Najarian are seeing unusual option activity in $CLF, $XOM and $EWZ.

Jon sees unusual activity in CLF, in the June $7 calls, as almost 14,000 were bought for 1.75. Jon bought these calls and says that he will likely write the $9 calls against them if this rally continues.

Jon also provided an update on TEVA, where last Monday he cited the call buying in the June $20 strike. Today those calls traded as high as 1.82, just over 5 times their original purchase price, as Warren Buffett doubled his stake in the company. Jon said that he rang the register and closed out of his position.

Pete is seeing unusual option activity in XOM, where 10,200 of the August $90 calls were bought from 0.45-0.50. Pete bought these calls and also owns XOM stock.

Pete also provided an update on EWZ, which he cited last Wednesday, stating the trade performed over the past week and he trimmed some of his position but then today he saw unusual activity in the June $42 calls as 23,000 were bought for 0.73 as part of a complex spread. Pete bought these calls and plans to be in them for about a month.