Options: Traders Bet on Jefferies Rally

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.

Below is a compilation of stories that ran yesterday on OptionMonster.com, which uses advanced monitoring systems to detect trading patterns by large institutional traders and retail investors.

Large trade sees limits on McKesson(MCK Quote): A big trader is using a three-part strategy to leverage a modest rally in the pharmacy-benefits company.

Jefferies Group (JEF Quote) options activity heats up: Retail investors are snapping up calls in the bank, betting it will rally more than 10% by the middle of June.

Humana (HUM Quote) draws bullish spread: An investor employed a ratio spread on the benefits company before two conferences scheduled for next month.

Options bet Cemex (CX Quote) will stall: The Mexican cement giant has been trapped below $11 since October, and options traders are betting that it will stay there in coming weeks.

Trading & Abetting: Examining a calendar spread on Pepsi Bottling(PBG Quote).

Wednesday Pre-Market:

Traders bet Sigma-Aldrich (SIAL Quote) to rise: The biochemical company has risen more than 45% since its March lows, and some options traders believe it has even more room to run.

Gap (GPS Quote) gets bullish long-term trade: A large trade used a complex options strategy that will generate maximum profit if the specialty retailer reaches $20 by December.

Big bearish trade in small wireless firm: TeleCommunication Systems (TSYS Quote) received a massive bearish trade Tuesday as investors snapped up short-term puts.