Bulls Buy Oshkosh, Alkermes: 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.

Trader counts on Alkermes(ALKS Quote) to bounce: The drugmaker has fallen 23% in less than two months, but one large trader apparently believes that the stock will rebound by mid-January.

Strategy tries to time Sun-Oracle(ORCL Quote) deal: We have seen a number of trades over the last several months that revolve around the Sun Microsystems(JAVA Quote) takeover, and that continues today.

Bearish play on Nordstrom(JWN Quote) earnings: Nordstom reports earnings after the bell tomorrow, and one investor is positioning for a move lower.

Where we stand for the S&P rally: Given the breakout to fresh year-to-date highs today, it seemed like a good moment to revisit the S&P 500 chart we have used for forecasting over the last several months.

Why one trade bets on MetroPCS Communications(PCS Quote): Shares of the communications carrier are hovering just above the low of last week, but large options action is very bullish.

Bulls take the wheel at Oshkosh(OSK Quote): The truckmaker has rallied eightfold since March, and the bulls expect it to keep on trucking through the December contracts.

Wednesday Pre-Market:

Eastman Chemical(EMN Quote) draws bullish bet: The company has broken out of a three-month range this week, and one trader is making a large bet that the stock will continue rising into 2010.

Large bearish trade in Sprint Nextel(S Quote): The telecom stock rallied 20% Monday, but one big investor expects it to make new lows by mid-January.

Intrepid Potash(IPI Quote) faces bearish trade: Bearish traders bought puts in large numbers yesterday in a bet that next spring won't be a bountiful one for the fertilizer producer.

Trades reflect negative tone for CF Industries(CF Quote): The fertilizer company insists that it's worth more than $93 a share, but one big investor doesn't agree, and is using January contracts to back that opinion.