Pete Najarian said on CNBC's "Fast Money Halftime Report" that traders were buying the September $83 calls in Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) on Tuesday. Around 5,000 contracts were traded for approximately 50 cents. The trade breaks even at $83.50 or around 2.5% above the current stock price.
There was also some short-term activity in Netflix Inc (NASDAQ:NFLX). Traders were buying the September $550 calls on Monday and they bought the September $560 calls on Tuesday, explained Najarian. He added that these options expire on Friday.