Pete Najarian Spots Option Activity Abroad in $EEM and $FXI

On today’s CNBC Halftime Report, Pete Najarian is seeing unusual option activity in $EEM and $FXI.

Traders were buying 50,000 EEM April $51 calls for $1.57. The trade was financed through selling puts to the downside and calls to the upside. Pete owns these calls and plans to hold 1-2 months.

In FXI, traders were buying the March $53 calls for $1.61. The trade was put on using the same strategy as $EEM ; selling upside calls and downside puts to finance the long calls. Pete is also in these calls and intends to hold for about a month.

The trader is expecting the global growth in world markets to continue with the benevolent economic backdrop.