'It Went To $134 In 11 Days': Why Jon Najarian Is Buying Short-Term Roblox Call Options Ahead Of Earnings

Roblox Corp RBLX is set to announce its fourth-quarter earnings results after the bell. With the stock down more than 30% since the start of the year, Market Rebellion co-founder Jon Najarian noticed some call buying activity, looking for massive moves following the report. 

A large move wouldn't come as a complete surprise when considering the outsized gains the stock turned in on the back of its last earnings report, Najarian recalled Tuesday on CNBC's "Fast Money Halftime Report."

"Last time in November when they reported earnings, the stock was under $80," Najarian said. "It went to $134 in 11 days."

He noted that the move to the upside was extremely fast, therefore traders can expect some volatility in the name after the report. 

Related Link: Why Roblox Will Start Heating Up If Shares Cross This Resistance Line

Najarian said he noticed options buyers purchasing anything from the $70 strike all the way up to the $100 strike calls. 

"People are willing to bet that perhaps those numbers ... are going to be better than expected," he said. "Especially after this wicked selloff that it has experienced."

Najarian told CNBC that he bought Roblox calls ahead of the report, but noted that his time frame is "very short term."

RBLX Price Action: Roblox has traded as low as $53.63 and as high as $141.59 over a 52-week period.

The stock was up 4.81% at $71.65 Tuesday afternoon ahead of the close. 

Photo: courtesy of Roblox.