Options action in the SPDR S&P Homebuilders (XHB) suggests to me the homebuilders could be going higher, says Pete Najarian.

Pete Najarian points out the Industrial SPDR (XLI), with potentially profitable up-side call activity. He’s looking at some interesting options action surrounding the industrial sector.

Pete Najarian looks at how the stocks have been priced in, and has seen selling of the $95 calls in the options market. He's seen pressure for quite some time on $95 calls, and that's what we saw more of today.

The April calls in Capital One (COF) suggests to me this stock could climb higher, adds Pete Najarian.

Pete Najarian suggests long the Semiconductor ETF (SMH) “because the options activity has been incredible.”

Guy Adami prefers long Transocean (RIG) because recent options action appears bullish.