Options Recap: Deutsche Telekom, Cubist

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 for OptionMonster.

Options bullish on Deutsche Telekom(DT Quote): Some traders are positioning for upside in the German telecommunications carrier. (The company reported after this recap was compiled that second-quarter earnings rose 32% and it maintained its outlook for the rest of the year).

Bulls dig hooves into Cubist(CBST Quote): The bulls are stampeding into the pharmaceuticals company, snapping up shares and calls ahead of an investor meeting next week.

Consolidating NDX awaits catalyst: The Nasdaq 100 has moved in a wide channel over the last four days. Cisco's(CSCO Quote) earnings report may help the index break out of this range.

Traders cautious on Manulife(MFC Quote): Options traders are positioning for downside in Manulife Financial, just before the insurance company reports second-quarter results.

Options see downside in China ETF: The iShares FTSE/Xinhua China 25 Index(FXI Quote) exchange-traded fund is down sharply, prompting at least one big trader to position for a further pullback.

Wednesday premarket:

Value hunters target Kodak(EK Quote), MBIA(MBI Quote): In another sign that the credit crunch is reversing itself, options traders poured money into the financially challenged Eastman Kodak and MBIA on Tuesday.

Options bullish on Linear Tech(LLTC Quote): The circuit maker has jumped more than 20% in the last month, including its pop on its earnings results, and options traders are looking for more upside.

Comcast(CMCSA Quote) draws large but odd trade: Occasionally we see blocks of options that definitely qualify as unusual trading but have odd timing, and that is what we saw in the cable giant Tuesday.

Bulls buy Alexandria Real Estate(ARE Quote): Trading was bullish in the real-estate investment trust prior to the release of its second-quarter results.