Bulls Bet on Kraft, Sequenom: 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) -- Options see small-cap weakness: One big investor is using puts on the IWM small-cap exchange traded fund to position for a pullback in the market.

Complex trade in health care ETF: A complicated option spread shows that one trader apparently thinks that the health care sector will hold at current levels.

Sallie Mae draws bearish trade: One big investor is apparently concerned about downside at student-loan provider SLM(SLM Quote) and is buying January puts.

Bulls stampede into Sequenom(SQNM Quote): Traders are making bullish bets on Sequenom, expecting positive news about a Down Syndrome test that caused the shares to tank in late April.

VIX jumps but options are muted: The volatility index is popping higher by more than 7%, but the options aren't getting much bang for the buck.

Monday Pre-Market:

Major indexes trapped in a range: As we have seen several times now, when index levels hit resistance but fail to break higher, we quickly move down to support.

Traders snap up puts in Goldcorp(GG Quote): The mining company's shares climbed 2% Friday, but the options traders were buying September and October puts.

Options count on Kraft Foods(KFT Quote) to jump: Somebody apparently thinks that the food giant is ready to resume its earlier run. The stock is little changed in recent weeks after climbing 11% from mid-June.

Puts surge in emerging markets: Emerging market stocks have been bumping up against resistance this month, leading at least one large option trader to position for a decline.

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

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