Jon Najarian Sees Unusual Options Activity In Bank Of America

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 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 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.