Options Recap: Heavy Trading on Wells Fargo

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 stories that ran today on OptionMonster.com, which uses advanced monitoring systems to detect trading patterns by large institutional traders and retail investors.

Options bullish on Cavium Networks: Cavium Networks(CAVM Quote) is up more than 7% today, and traders are selling puts on a bet it won't go back down.

Traders piling into MEMC calls: Options activity surged in MEMC Electronic Materials(WFR Quote) as takeover rumors circulate.

"Ultrashort" puts are bullish on stocks: There are a number of ways to play this rally, and one trader is using put spreads on an "ultrashort" S&P 500 exchange traded fund.

Forest Oil gets bullish trades: Forest Oil(FST Quote) is down, but options traders are betting that it's not out.

Wells Fargo gets huge put trade: Wells Fargo(WFC Quote) is falling today ahead of the government's bank "stress test" results, and put sellers have stepped in to insure against further declines.

Trader aims high in American Tower: In a so-called risk-reversal trade, one large investor is betting that shares of cellular-tower company American Tower(AMT Quote) are headed higher.

Inverness sees heavy call volume pre-market: Options activity surged in Inverness Medical Innovations(IMA Quote) yesterday as traders positioned for the diagnostics company to keep rising.