Options Recap: Nexen, KLA-Tencor, S&P 500

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, a reporter at OptionMonster .

Options point to volatility in Nexen (NXY Quote): One big trader sees volatility in the future for the Canadian energy company and is buying puts and shares.

Trader bets against consumer staples: At least one big investor is positioning for a pullback in consumer staples shares by early next year, buying puts in the Consumer Staples Select Sector SPDR(XLP Quote).

Trader upbeat on Japanese stocks: One investor apparently thinks Japan's equities will rise next month and is using options in the iShares MSCI Japan Index(EWJ Quote) to maximize profits from the move.

Large trade is bullish on KLA-Tencor (KLAC Quote): Options trading turned bullish on the chip-equipment maker as at least one investor positioned for a near-term pop in the shares.

Import lessons in SPX patterns: The S&P 500 Index has presented a number of "head and shoulders" patterns over different scales and time frames, which has created a rare "nesting" effect in the index.

Wednesday Pre-Market:

Constellation Brands (STZ Quote) up on outlook: The positive guidance for fiscal 2010 is an indication that the liquor company is ready to play catch-up with rival Diageo.

Traders mining calls in Arch Coal (ACI Quote): Options traders were buying calls Tuesday as they looked for the coal producer's stock to return to recent highs.

Jobs, housing, oil data lead calendar: The calendar is packed for the day, with everything from employment to energy in the mix. The chances for strong crosscurrents and noisy trading are high, especially early.