Bulls Shop Best Buy, Macy's Stuck: Options Recap

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) -- Freddie Mac(FRE Quote) options explode after profit report: Options volume surged in FRE after the government-backed mortgage lender reported a profit and said it doesn't need more aid at this time.

Caterpillar(CAT Quote) faces bearish trade: One investor is betting on a limited pullback after CAT rocketed 56% in the past month.

Options see Macy's(M Quote) rangebound: At least one big investor sold options on Macy's, hoping for a rangebound trade.

VIX shows the fear in the market: The VIX is up 3%, back above 25 as fear appears to be jumping back into the market.

Options bullish on Energy Conversion Devices(ENER Quote): Options are bullish on Energy Conversion as traders bet on a rally during the next six weeks.

When confidence is a liability: The ego can present problems both in winning and losing. Overconfident traders often take on too much risk and end up blowing up.

Monday Pre-Market:

Tech index resistance building: Friday's employment report didn't help the Nasdaq very much.

Interpublic Group(IPG Quote) races higher amid call action: Interpublic group tore higher by more than 10% on Friday, and the bulls were betting the run isn't done.

Options bullish on Micron Technology(MU Quote): Micron Technology is up 45% in the past month, and at least one trader is betting on further gains.

Bucyrus International(BUCY Quote) receives volatility trade: One big investor implemented a delta-neutral trade on Bucyrus, betting on a move.

Best Buy(BBY Quote) has a big day: Best Buy has run close to 30% in the last month, and the options trading remains bullish.

-- Reported by David Russell of OptionMonster in New York.