Jon Najarian Sees Strong Options Activity In Roblox, Amazon: What You Need To Know

BY Benzinga | TREASURY | 07/05/22 03:39 PM EDT

Growth stocks are catching some bids Tuesday amid falling Treasury yields. Market Rebellion co-founder Jon Najarian highlighted a few of the growth names investors seem to be focused on.

What To Know: Najarian bought Roblox Corp (NYSE:RBLX) call options after seeing strong interest in the call-side contracts. 

"Obviously the stock has been slaughtered. It's down so dramatically that people ... are saying, I'm going to take a shot at this one," Najarian said Tuesday on CNBC's "Fast Money Halftime Report."

Roblox shares are down more than 60% since the start of the year, according to data from Benzinga Pro.

"Some of these stocks have been battered so severely that it's hard to imagine a much worse scenario," Najarian said. Inc (NASDAQ:AMZN) is another name that has given back a lot of its gains. Amazon shares are down more than 32% year-to-date and traders are looking for a short-term pop to the upside, according to Najarian. 

"We have some strong unusual activity. How strong? 15,000 calls," he said. 

Those calls are at the $111 strike and are set to expire this week, he added. Najarian told CNBC he jumped into those contracts with the stock trading around $109 per share. 

See Also: Jeff Bezos Goes To Disneyland: Here's Why Fans Are Mocking Amazon Founder

RBLX, AMZN Price Action: At press time, Roblox was up 12.9% at $39.59 and Amazon was up 3.02% at $112.82.

Photos: courtesy of Roblox and Amazon.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.