Hershey, Arch Coal Lure Bulls: 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.

BOSTON (TheStreet) -- Long-term bets target Arch Coal(ACI Quote): Options turn bullish turn for the coal producer as investors plow money into long-term bets on the stock.

Traders bullish on Titanium Metals(TIE Quote): The metal producer rose 6% yesterday on no news, but traders still see upside.

Options see strength in dollar: Activity in the PowerShares DB US Dollar Index Bullish Exchange Traded Fund(UUP Quote) surges as investors positioned for a potential rally in the dollar or a pullback in gold.

VIX futures tell volatility story: The VIX is down 2% today, while the iPath S&P 500 VIX Short-Term Futures ETN(VXX Quote), which tracks the futures, hits new lows.

Applied Materials(AMAT Quote) draws calls: Shares of the chip-equipment company are pushing back toward their August highs, and the options action is looking for even more upside in the short term.

Bulls are sweet on Hershey(HSY Quote): Traders are bullish on the candy maker, pushing its shares higher a day after rival Cadbury rejected a takeover bid from Kraft as too low.

Wednesday Pre-Market:

Is materials ETF ready to run?: On a technical basis, the sector looks as if it could be ready to break out as it is nearing a potential bullish "flag" formation.

Pride International(PDE Quote) draw puts after run-up: Shares of the offshore driller have gapped higher the last three sessions but ended yesterday's trading down fractionally after posting their highest level since last September.

Solar firm spikes on buyout rumors: Shares of Energy Conversion Devices(ENER Quote) rocketed some 25% along with heavy options activity yesterday amid rumors that Applied Materials may seek to buy the solar-panel maker.

Nasdaq 100 leads other indexes: The NDX came out on top technically after yesterday's trading, the only index to break above resistance and to change levels.

Options betting on Health Net(HNT Quote): The health insurer, which is already up 18% in the last month, lit up our systems yesterday as investors bet on continued gains over the next five weeks.