Bulls Target Comcast, Nike: Options Recap

OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.

David Russell, reporter for OptionMonster.

NEW YORK (TheStreet) -- Applied Materials(AMAT Quote) draws call activity: Shares of the chip equipment maker have jumped more than 3% today, and significant call activity has followed.

Bullish trader tunes into Comcast(CMCSA Quote): The cable giant has risen 8% in the last month, and one large option investor expects the stock to keep moving higher.

Ways to limit the cost of protection: Using protective positions at this stage of the market's rally is probably a good idea, and there are various ways to overcome the costs.

How to use volatility in valuing options: There are several ways of looking at the value of an option, but using a comprehensive approach that incorporates both implied and historical volatility data is usually the most robust.

Liberty Media(LINTA Quote) gets vote of confidence: The owner of QVC and Starz has more than doubled in the last three months, and at least one big investor has confidence it will hold most of those gains.

Is the economic recovery here?: Debate continues over whether the recovery has begun, but Jon says one indication is definitely positive: parking at O'Hare airport.

Monday Pre-Market:

Bullish signs in Applied Materials: With a fresh upgrade from Citigroup(C Quote), the chip equipment maker could see a bullish 'flag' pattern triggered on its weekly chart.

Large call sale in Marathon Oil(MRO Quote): Marathon Oil has been falling for the last week but remains above technical support levels, and that has prompted what is likely a covered call trade.

Bullish traders run alongside Nike(NKE Quote): Options action turned positive for Nike on Friday as traders bought calls and sold puts on the athletic footwear and apparel company.

Calls spike in Alaska Communications Systems Group(ALSK Quote): The telecom carrier has apparently never come up on our screening systems before, but Friday saw large blocks of bullish call buying.