Sepracor, BofA, Take-Two: 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) - The following stories ran Wednesday on OptionMonster.com.

Sepracor surges on takeover report: Stock and options volumes are exploding in Sepracor(SEPR Quote) on a report the drugmaker would be acquired by a Japanese company for $2.7 billion.

Bulls deposit in Bank of America: A call spread is the largest options trade on Bank of America (BAC Quote) Wednesday and will earn a maximum profit of 198% if the stock closes at or above $21 by expiration.

'Straddle' trade in Take-Two: The videogame maker Take-Two (TTWO Quote) snaps higher on a good earnings report, but one investor is positioning for the stock to stay put.

Oracle draws heavy put buying: Traders are turning bearish on Oracle(ORCL Quote) Wednesday after antitrust concerns arose about its acquisition of Sun Microsystems(JAVA Quote), which is also losing market share according to a new report.

Traders betting Goldcorp will fall: Investors are aggressively positioning for a potential decline in the mining company Goldcorp(GG Quote), purchasing September puts in large volume.

Options expect Virgin Mobile to hold: Shares of Virgin Mobile (VM Quote) are pulling back again, but one large trade is looking for levels to hold through the end of the year.

Large spread on Russell 2000: The Russell 2000 topped out Friday, and one institutional trader is placing a large spread bet in small-cap index over the short term.

Bulls target Intrepid Potash: Options action is turning bullish on Intrepid Potash(IPI Quote) as investors look for the fertilizer company to rally over the next three weeks.

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