Bulls Target XL Capital, Wyeth: 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) -- XL Capital(XL Quote) draws long-term bets: Option traders make long-term bullish plays on XL Capital at the same time the insurance company sees a wave of stock buying.

Options see volatility in America Movil(AMX Quote): The Mexican wireless carrier is stalling after failing to rally through its pre-crisis support levels, and one volatility trader is betting on a sharp move in either direction.

Volatility index drops along with S&P 500: The VIX's spot value, which is down 1.% to 25.30, is clearly feeling the pull of realized volatility, to which it is closely tied.

Ciena(CIEN Quote) draws range-bound trade: The telecom gear maker started today down 19% in the previous two weeks, and now one volatility seller apparently thinks that it will stop moving in either direction.

S&P 500 on cusp of earnings: Unless the bottom of its large channel gets broken--which would require a sharp move below 1020 on a sustained basis--the uptrend will remain intact.

Moderately bullish play in Symantec(SYMC Quote): Symantec stock has been trading in an increasingly narrow band and today sees moderately bullish option trading.

Wednesday Pre-Market:

Levels could revisit recent highs: Yesterday's rally combined with higher futures and a generally positive tone from earnings so far suggest that we will break back into the upper half of the previous range today.

Gold rush on mining companies: Options action surged in several gold-mining companies yesterday as the precious metal broke into record territory.

Large trade is bullish on Wyeth(WYE Quote): Pfizer's purchase of WYE will close any day before the end of the year, and one trader is using options to wring out profits.

Long-term bullish bet on Dean Foods(DF Quote): The dairy and beverage company has been range-bound all year, but at least one trader is making a long-term bet that the stock will rise by next spring.