On CNBC’s “Fast Money Halftime Report,” Jon Najarian said traders were buying the next week expiration, $40 strike calls in Bank of America Corp (NYSE:BAC) in the first half of the session on Friday. Around 12,000 contracts were traded, which is 1.2 million shares equivalent. Najarian explained options traders are looking for a move higher because of move higher in rates. He decided to join the trade.
Najarian has also said he closed his long stock position and a cover call position in Robinhood Markets Inc (NASDAQ:HOOD). He is still in the trade with the September $55/$75 call spread. Najarian has also sold the straddle in Robinhood this morning because volatility is compressing. The straddle has come down from $18 to $15 in just three hours.
