Options Recap: Bullish on Acorda, Lloyds

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

By David Russell, reporter at OptionMonster

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

Drop expected in Express Scripts(ESRX Quote): A large investor is betting that the pharmacy-benefits company will drop at least 11% in the next two months.

Beware of quad witching: This week marks "quadruple witching," which means that equity options, index options, futures, and future options are all expiring as the quarter comes to a close.

Bearish bet on Ventas(VTR Quote) options: The nursing-home company has fallen, and at least one big trader is betting it can't get up.

Lloyds(LYG Quote) draws bullish trade: A large trader apparently thinks the London bank is headed higher and is taking a one-way bullish bet using options.

Utilities draw bullish trade: The utility sector continues to attract the attention of options traders, including some very large players. On Monday, the Utilities Select Sector SPDR (XLU Quote) exchange-traded fund drew more action.

Options bullish on Acorda(ACOR Quote): Options action turned bullish in Acorda Therapeutics as traders bet the drugmaker would keep rallying this week.

Microsoft (MSFT Quote) chart gives bullish signals: The software giant is outperforming the rest of the Nasdaq 100, following price action back in early May that indicated some bullish price potential with a possible break to the $20 area.

Monday premarket:

Measuring volatility for value: Chris McKhann explains a simple way traders determine whether a stock's volatility is cheap or dear.