Why Pete Najarian Just Bought Microsoft Call Options That Expire This Week
Market Rebellion co-founder Pete Najarian bought Microsoft Corp (NASDAQ: MSFT) call options Monday morning.
Najarian told CNBC he noticed a spike in call-buying activity as it relates to short-dated Microsoft call options at the $305 strike.
"They bought 20,000 calls in there today at the $305 strike ... so that absolutely got my attention."
Najarian considered adding to his stock position, but ultimately decided to buy the call options because he is expecting a rapid move higher. He noted the calls expire this Friday.
"I think this is a stock that has plenty of room to the upside still, despite the fact that it's pushing right up against all-time highs," Najarian said.
"They are doing so many things right that I think Microsoft is one of those premier companies that you want to be in, but I think that move is going to be very rapid to the upside that's why I chose to be in the calls."
See Also: BZ Chart Of The Day: Why Microsoft Might Have The Most Important Chart In The Market
Microsoft is set to announce its quarterly financial results after the market closes on Oct. 26.
MSFT Price Action: Microsoft has traded as high as $305.84 and as low as $199.62 over a 52-week period.
The stock was up 0.35% at $305.27 at time of publication.
Photo: courtesy of Microsoft.
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