According to Jon Najarian, Marshall & Ilsley [MI], and Corus Bank Corp [CORS] were both slammed by options traders. That suggests to him, they’re not too big to fail.

According to Jon Najarian, Marshall & Ilsley [MI], and Corus Bank Corp [CORS] were both slammed by options traders. That suggests to him, they’re not too big to fail.

Najarian has noticed “strong out of the money call buying and unusual stock activity.” That stems from market speculation that Johnson & Johnson [JNJ] could be looking at ISRG as a takeover target. According to the speculation, if the deal goes down – the offer could be around $150/share.

“Against very bad news the stock managed to rally.” As you might know UPS reported lower-than-expected profit on Tuesday and said that the economic slowdown had also forced it to cut costs and freeze some wages. However, “Despite horrible earnings the stock runs higher. That suggests the stock is more likely to trade higher than lower in the near-term,” counsels Najarian.

There seems to be consolidation in the space, explains Pete Najarian. There was an incredible amount of call buying in Amgen [AMGN], he adds, though I don’t think it’s a takeover target.

Tim Seymour sees opportunity in energy with Exxon Mobil [XOM] as they have been able to pull profits out of favorable refining margins. Look at their stock buyback which will be around $7 billion, and it is the best-positioned oil company in the world, says Seymour. Pete Najarian suggests buying puts on the stock to protect yourself from any downside.

Najarian noted unusual bullish options activity in Netflix(NFLX), which saw a 25% in subscriptions in the past quarter. "People are staying at home and downloading movies," he said.

Jon Najarian thinks Cisco [CSCO] around $15 could be a buy. He says, "sell puts to buy it lower."