Bulls Target Shire, Conoco: 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) -- Big volatility play in Brazilian bank: Itau Unibanco(ITUB Quote) has more than doubled in value in the last six months, but there is heavy options trading that shows concern for higher volatility.

Large put trade in emerging markets: Emerging markets haven't provided much in the

way of diversification, but they have provided some interesting options trades.

DRJ says to keep your trading perspective: Perspective is key to all forms of investment, especially trading. Jon underscores this point with an explanation of covered writes and naked puts.

ConocoPhillips(COP Quote) draws bullish trade: The energy company has not broken the $50 mark since the beginning of the year, but one large option trader is betting that it will break that level by mid-January.

What does VIX mean at these levels?: The volatility index is down again this morning, remaining near the lowest levels of the year, but the question remains over what it means.

Use the power of critical thinking: There are several topics not taught in school (most schools, at least) that are fundamental to trading: logic, critical thinking, and basic finance.

Tuesday:

Russell 2000 breaks above resistance: The small-cap index managed to break out and close above resistance yesterday. It gets a new resistance level this morning, with support notching up as well.

Options show support for XL Capital(XL Quote): XL is in the insurance business, but the tables were turned yesterday as one investor wrote a large policy on its stock price.

Large volatility trade in ProShares fund: (SDS Quote) exchange-traded fund has posted a new closing low and, while the calls are very active, the trading isn't necessarily bullish.

Trader positions for SL Green Realty(SLF Quote) pullback: One big investor is positioning for a pullback in the New York real-estate investment trust, which has more than doubled in the last three months.