Ventas, Mirant Attract Bears: 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) -- Ventas(VTR) up but draws downside trade: The health care real-estate trust is hitting 52-week highs, but at least some option traders remain bearish.

Bears play long-term drop in Mirant(MIR): The electricity utility has been a poor performer in a bad sector, and now the bears are looking for lower prices in long-term trades.

Bullish pattern activated in Microsoft(MSFT): The pattern was triggered well after the software giant announced its earnings results on Oct. 23 before markets opened, when the stock gapped up dramatically.

Low probability trade in DirecTV Group(DTV): Buying out-of-the money options with only five days until expiration is a low-probability trade that most institutions avoid, but today we are seeing this bearish trade in DirecTV.

Monday Pre-Market:

Indexes remain at important juncture: The NDX remains the technical leader, with the SPX very close behind. All that is required for that to happen is for resistance to be taken out to the upside.

Calls surge in Lowe's(LOW) before earnings: Lowe's saw heavy upside option trading Friday ahead of its quarterly earnings release before the market opens today.

Alcon(ACL) bull hopes patience will pay off: One big investor apparently expects the contact-lens maker to keep climbing for the next 13 months and is using options to leverage the move.

Trader sees strength in Hercules Offshore(HERO): The debt-heavy oil drilling stock has been consolidating above $5 for the last two months, and one investor is wagering that it will stay there.

Steelmaker Gerdau(GGB) gets bullish trade: The Brazilian steel producer finished the week higher, but only with a surge on Friday, and the one option strategy dominated the trade.

Will CommVault(CVLT) stay locked in a range: CommVault has doubled in the last year, and now one investor is betting that the data-management stock will stay in a range.