What Triggered Jon Najarian To Buy Amazon Call Options Today?

Evercore ISI analyst Mark Mahaney named Amazon.com Inc (NASDAQ: AMZN) his top internet stock for 2022 on Tuesday. 

Many are expecting a strong 2022 for the e-commerce giant, but Market Rebellion co-founder Jon Najarian still thinks there is room to the upside before year's end after seeing unusual options activity in the stock.

Someone bought 11,000 of the Amazon $3,450 call options expiring at the end of the week, Najarian said Tuesday on CNBC's "Fast Money Halftime Report."

He told CNBC that he decided to buy Amazon calls following the massive options trade.

"When they buy 11,000 of something as big as that—that's 1.1 million shares of a $3,500 stock—that's why I jumped in there," Najarian said.

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What's Next: He also said that he plans to continue selling options against his stock position. 

"Selling those calls against your long positions in Amazon, you can easily take that into the low 20% returns," he said.

He noted that Amazon's returns have been lackluster in 2021, trading higher by about 5% year-to-date. However, he reiterated the importance of selling calls to boost returns.

"To have one of the absolute stellar stocks out of all the S&P 500 and to be able to then enhance that with another 15% or 20% upside just by selling those upside calls against it, that's why we play this game," Najarian said.

AMZN Price Action: Amazon has traded as high as $3,773 and as low as $2,881 over a 52-week period.

The stock was up 0.73% at $3,418.22 at the time of publication.

Related Link: Is This The Top FANG Stock For 2022?

Photo: courtesy of Amazon.