The put buying suggests Morgan Stanley (MS) is going lower. - Pete Najarian.

Also keep your eye on the regional banks, Najarian adds. Options action in KeyCorp (KEY) looks bearish to me.

Najarian said Regions Financial (RF) July $12 puts traded 10 times the open intrest on Tuesday. He feels the stock is heading lower as investors speculate the company wont be able to pay its dividend.

Options traders are buying 21 calls, explains Najarian, out to November. I’d keep an eye on this stock over the next several months.

The traders observed that Goldman Sachs (GS) has risen 7% since last Friday. Najarian said there has been heavy call activity in Goldman Sachs Group (GS).

And I also like Marvell Technologies (MRVL) Options action suggests to me that this stock could go higher. - Jon Najarian.

Even with its stock volatility, Najarian believes you should keep an eye on Lehman's Put options, as they continue to hold onto previous levels. Even as the stock drop, the July 15 Puts expand. "You might want to have some puts to protect, if you decide to go for the bottom."

I see a lot of put buying in regional banks, reveals Pete Najarian. I don’t think the trouble is over in this space. Keep you eye on Fifth Third Bancorp (FITB).