Options Recap: Trader Sweet on Smucker

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.

Trader is sweet on J.M. Smucker (SJM Quote): Someone is bullish on jam and peanut-butter company, buying July calls and selling puts in a so-called risk reversal trade.

China ETF draws bullish put trade: The iShares FTSE/Xinhua China 25 Index Fund(FXI Quote) is seeing heavy put activity, which appears to result from stock purchases.

Traders snap up calls in industrials: Call volume surged in the Industrial SPDR ETF(XLI Quote), reflecting bullish expectations for the sector.

Long-term options bullish on CBS (CBS Quote): Options action turned bullish on CBS today as traders bet that the media giant will rally at least 30 percent by early next year.

Investors cautiously buy into Gilead Sciences (GILD Quote): The biopharmaceutical company is rallying after announcing appearances at two upcoming conferences, and investors are using options to hedge downside risk.

Chart shows S&P 500's overbought condition: There have only been two occasions when the S&P was as overbought as it was on Monday: in March 2000 and March 2002.

Traders reverse course on Mosaic (MOS Quote): Mosaic fell nearly 7 percent, accompanied by strong downside options activity.

Wednesday Pre-Market:

Feed company draws calls: AgFeed Industries(FEED Quote) is hardly a household name, but call volume rose to five times average in the China-based livestock feed company on Tuesday after its earnings exceeded estimates.

Traders bullish on Kinetic Concepts (KCI Quote): Options trading was bullish in Kinetic Concepts on Tuesday as investors gobbled up calls in the medical-technology firm.