Options Recap: UBS, Mylan, Zimmer

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.

NEW YORK (TheStreet) -- Below is a compilation of some important stories that ran yesterday on optionMONSTER.com. optionMONSTER was co-founded by Deep in the Money Calls author Pete Najarian and uses advanced monitoring systems to detect trading patterns by large institutional traders and retail investors.

UBS(UBS Quote) attracts bullish trades: The Swiss banking giant will report second-quarter earnings early next month, and the bulls are already jumping on board.

Mylan(MYL Quote) drops as put activity rises: Shares of the generic drug maker are under pressure after a report of possible quality-control issues, and the options activity is focused on August puts.

Bearish trade in IAC/InterActiveCorp(IACI Quote): The media company gaps to a 13-month high, prompting one investor to position for a pullback with the largest options trade of the day.

Masco(MAS Quote) could develop bullish pattern: As a manufacturer of home improvement products of such as paint and faucets, the company was sensitive to slack demand in housing.

Bulls digging into metals, mining: Options action is positive for the metals and mining sector today as investors place bullish trades on the the SPDR S&P Metals and Mining ETF(XME Quote).

Volatility has bearish signals for S&P 500: The S&P 500's volatility relationship has changed once again after the VIX climbed sharply, and it doesn't bode well for the markets.

Options bullish on Zimmer Holdings(ZMH Quote): Options action was bullish on the medical-device company as investors bet it would continue moving higher this year.

What Lance can teach about trading: There are several important things we can learn from the cycling legend's behavior that apply to trading. The first is that people aren't always "rational" in the economic sense.

Monday Pre-Market: