Najarian Brothers See Unusual Option Activity in $EBAY, $ED, & $MGM

On today’s CNBC Halftime Report, Jon and Pete Najarian are seeing unusual option activity in $EBAY, $ED and $MGM.

Jon is seeing unusual activity in $EBAY, as traders purchased 2,200 of the 05July $39 calls for $0.65 to $0.70. The trade breaks even when EBAY reaches $39.70 or so, and Jon bought these calls.

Jon is also seeing unusual activity in $ED, as traders purchased around 2,000 of the 14June $87 calls for $0.62 to $0.80, which expire this Friday. Jon bought these calls, noting other buying at both the $88 and $89 strikes for the same expiry. He plans to be in the trade for one to two days.

Jon then updated a trade in $JD, from last Friday, noting that those calls have nearly doubled, and that he is taking half of his position off.

Pete is seeing unusual activity in $MGM, as traders purchased 5,000 of the August $30 calls for $1.14, as part of a bullish roll. The trade breaks even with the stock around $31.14. Pete bought these calls and will be in them for at least a month or so.

Lastly, Pete updated a trade in $KWEB from June 3, noting that those calls have returned 70%, while the shares have risen 5% over the course of the past week!