Jon Najarian Is Waiting For Another Opportunity To Trade AMC, Other Reddit Stocks

The enormous volatility in AMC Entertainment Holdings Inc AMC and other so-called meme stocks creates trading opportunities, Jon Najarian, the co-founder of Market Rebellion, said Thursday on CNBC's "Fast Money Halftime Report."

The stocks have seen an increase in trading volume because of hype on Reddit and other social media platforms.

What Happened: AMC Entertainment entered into an agreement Thursday with B. Riley Securities and Citigroup Global Markets to sell up to 11.55 million shares of its stock.

AMC and most of the other related stocks traded significantly lower on the announcement.

Najarian's Take: Based on the volumes that he has seen, it's not just Reddit traders, Najarian said, adding that hedge funds are involved in these names as well. 

4.6 million options contracts were traded Wednesday in AMC Entertainment, which represents eight times the options volume of all of the FAANG stocks combined, he said. 

Najarian said he's selling calls against his existing positions and taking profits Thursday.  

When the volume surges, Najarian is looking to re-enter trades in AMC Entertainment, BlackBerry Ltd BB and Koss Corp KOSS, he said.

Related Link: BlackBerry Overtakes AMC To Become Top WallStreetBets Interest

AMC, BB, KOSS Price Action: At last check Thursday, AMC Entertainment was up 8.43% at $7.82, BlackBerry was up 9.97% at $16.77 and Koss was down 12.99% at $35.43.