On CNBC's "Fast Money Halftime Report," Pete Najarian spoke about Alibaba Group Holding Ltd - ADR (NYSE: BABA). He said the stock traded 20% higher in a very short time frame and yet traders are buying the July $275 calls. They're expecting even more upside.

Around 6,000 contracts were traded in the first half of the trading session and traders were paying around $2.75 for them. Najarian added that buyers of these calls are hedging their positions by selling the July $290 calls. This trade is short term as calls expire next Friday.

See Also: 4 Reasons Alibaba's Stock Is A Buy Right Now

Najarian also noticed some bullish options activity in Cleveland-Cliffs Inc (NYSE: CLF). Around 30,000 contracts of the July $6 calls were traded early in the session. Traders paid around 20 cents for these calls.

Najarian likes both trades and he decided to follow them.

Image: Andy Mitchell, Flickr

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