Options Recap: Pulte, Ford, Palm

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) -- Options show confidence in National Semiconductor(NSM Quote): The company rallied to a new 2009 high, and options action seems to reflects a belief the stock will hold its ground.

Pulte Homes(PHM Quote) chart at key juncture: The homebuilder reports after the close today and will be a test of just how well -- or if -- a recovery is underway in new housing.

Bulls drilling for upside in Unit(UNT Quote): Trading is bullish in August options one day before the natural-gas driller releases second-quarter earnings.

Trader makes bullish bet on Jabil Circuit(JBL Quote): A large options trader is betting that the electronics manufacturer is ready to break higher by September.

Ford Motor(F Quote) spikes after strong call action: The automaker gaps up to a 15-month high, following bullish options activity last week that saw heavy call buying.

What is going on with the VIX?: Last week the VIX and the S&P 500 both rose for the whole week, a rare occurrence, and today they are continuing this supposedly odd behavior.

Monday Pre-Market:

Banks show strength in Europe: Barclays(BCS Quote) and HSBC Holdings(HBC Quote) report first-half results and give statements indicating that the Euro-banking giants are past the toughest part of the downturn.

Secondary support becomes crucial: The key for the bulls now is maintaining momentum. It is up to the companies reporting this week to provide more steam or a brake on the rally.

Trading heats up in Amedisys(AMED Quote): Stock and options trading in Amedisys surged to more than four times average Friday after the government said it may increase payments to home-healthcare companies.

Bullish traders feast on Tyson Foods(TSN Quote): Options action surges in Tyson Foods as investors bet that the poultry company will snap higher over the next two months.

Options bullish on United Rentals(URI Quote): Investors are betting that the rental company will rally more by September after its shares broke above $7 last week to a six-month high.