Bulls Buy Cephalon, WebMD: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) -- Utility AES(AES Quote) sees spate of call selling: The electric utility has been dead money for the last three months, and now one investor may be throwing in the towel.

Trader sticks with bullish Cephalon(CEPH Quote) trade: The biopharmaceutical company continues its rally of the last two weeks, and the options action tops our list of unusual volume so far in today's session.

Bulls feast on Smithfield Foods(SFD Quote) calls: The meat processor gapped higher at the open today, and traders are positioning for the stock to keep running into next year.

Puts anticipate drop in regional banks: Even as the market continues its rally, one trader is looking for a drop in the regional banks using options and the IAT exchange-traded fund.

South Korean ETF faces bearish trade: The country's equities have been lagging over the last month, and now one trader is positioning for a potential selloff.

Monday Pre-Market:

Bulls have edge in technical picture: Price is back above the all-important 50-day moving averages in the S&P 500 and the Nasdaq 100, and that gives the bulls the technical advantage.

Biotech is longer a roll of the dice: Companies in the sector have become more than just one-trick ponies that stake their entire businesses on the fate of a single drug.

WebMD Health(WBMD Quote) receives vote of confidence: The medical-information company is fighting to reach its highest levels in 18 months, and one big investor has confidence the stock will hold its ground or move higher.

Bright spring forecast for Qualcomm(QCOM Quote): One big investor is positioning for the wireless-chip maker to rally into the spring by purchasing April call contracts.

Put selling shows support for Citrix Systems(CTXS Quote): The technology infrastructure company drew a show of support Friday when traders sold puts in large numbers before the second of two conference appearances in as many weeks.