Options Recap: Bears Bet Against AutoNation

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

David Russell, reporter for OptionMonster.

Below is a compilation of some important stories that ran yesterday on OptionMonster.com.

Trader sells Intel calls as volatility falls: As shares of Intel(INTC Quote) see declining volatility, one trader is taking the opportunity to sell calls. The short position was likely matched against holdings of the stock and will profit from the shares remaining close to $17.

Large trade is bearish on AutoNation: One large options trader is using a bearish put spread to bet against AutoNation(AN Quote) after the car retailer rose to an 18-month high.

Hotel, casino options heat up: Options activity is taking off in some hotel and casino operators as traders bet on a takeover of Boyd Gaming(BYD Quote) and hedge positions in Wyndham Worldwide(WYN Quote).

Chico's FAS gets bullish call spread: Options traders are buying call spreads on Chico's FAS(CHS Quote), betting the fashion retailer has more room to run.

Boyd forming bullish triangle pattern: As shares of Boyd Gaming rise with heavy options activity, a chart of the casino company's stock is showing a bullish pattern in play.

Corporate credit leaps 93%: Healthcare leads a surge in corporate bond sales as the debt market improves.

Vertex calls jump on takeover rumors: Shares of Vertex Pharmaceuticals(VRTX Quote) jumped 10% Tuesday along with heavy options activity amid rumors that Johnson & Johnson(JNJ Quote) may be interested in acquiring the company.

Bulls charge into Shaw Group: Traders are bullish on the Shaw Group(SGR Quote), buying both stock and options contracts after the engineering company announced a strategic deal to help build nuclear power plants in China. The average daily options volume for the engineering company is just over 5,000 contracts, but more than 32,000 changed hands Tuesday.

Traders bet PepsiCo will hold: Options traders are willing to stand behind PepsiCo(PEP Quote). In one of the market's largest transactions Tuesday, OptionMonster's Depth Charge monitoring system spotted the sale of more than 35,000 October 50 puts, reflecting confidence by some traders that the shares won't fall considerably from their current levels.