Unusual Options Activity: Pete Buys The Dip

Pete Najarian joined CNBC’s Halftime Report today to talk Unusual Options Activity and what dips he’s been buying this week. Wall Street has turned decidedly lower since Black Friday. That’s when news broke that a new variant of Covid-19 was proliferating from South Africa.

Since then, there have been reports that the variant, delegated “Omicron” by the World Health Organization, has appeared in the United States. Wall Street saw a similar sell off when the Delta variant was first discovered earlier in the year. 

Investors bought that dip and lead the S&P 500 ($SPX) to new highs. Those dip buyers are back with a vengeance today, picking up huge orders of calls in Apple ($AAPL), $MGM, Viatris ($VTRS), Opendoor ($OPEN) and others, as the battle between Bear and Bull intensifies.

Market sell off? Pete’s taking out his shopping list

Pete inserted himself into that fray today, buying the dip in quite a few names. He bought shares in Paypal ($PYPL), and he plans to take advantage of the high implied volatility by selling covered calls against his position. Covered calls are a staple in Pete’s Pete’s Covered Calls. Listen to Pete make his case for PayPal below.

Pete also bought call options in several other names today, including Ford ($F), MGM Casinos ($MGM), Vistra ($VST), Underarmor ($UAA) and Starbucks ($SBUX), citing unusual options activity as his main catalyst for these purchases.

But he wasn’t done — listen to him break down unusual options activity in Opendoor ($OPEN) and Viatris ($VTRS) below!

For his Final Trade, Pete channeled his inner Steve Jobs after uncovering the unusual options activity in $AAPL!

My Final Trade on @HalftimeReport was $AAPL, we were tight on time, but here is why $AAPL:
From @MarketRebels
12/02/2021 11:22:55 am
– $AAPLBullish Call Buying of 80,000 31December 160 calls
– Stock was $161.80 pic.twitter.com/0RoaZS5ind

— Pete Najarian (@petenajarian) December 2, 2021