Skechers, Hershey Options Attract Bears

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) -- Bears bet Skechers USA(SKX) is one slow track: The sneaker company has been losing ground since failing to break resistance at $25, and now the bears are looking for more downside.

Range-bound trade in Royal Caribbean Cruises(RCL): The cruise-line operator has more than quadrupled from its March lows, but now one investor is betting that it has stalled in cross-currents.

Rough ride seen for Broadcom(BRCM): The wireless-chip maker sits squarely in the middle of its recent rollercoaster ride, and the big trade of the day is looking for that volatility to increase.

Bears count on Hershey(HSY) to melt: Bears have already shown a sweet tooth for HSY and are now betting that investors will sour on the candy maker into the New Year.

Two must-read books for traders: There are two books on options that are invaluable to traders for different reasons. Read on to find out why they're so important.

Genco Shipping & Trading(GNK) shipping hits headwinds: The ocean transportation company is attempting to stop the slide from recent highs, but options trading is looking for a top.

Monday Pre-Market:

DRJ says stimulus is economic cortisone: "Cash for Clunkers" and other stimulus measures are akin to athletes using cortisone: Once it wears off, the damage is far worse than enduring the immediate pain.

Gold miners show lukewarm support: Gold bulls were strong enough to push bullion prices back from a big opening drop Friday, but option traders were less enthusiastic about mining companies.

Morgan Stanley(MS) draws bullish activity: The bank fell 2.9% but drew some bullish options activity on the thinly traded half-session a day after Thanksgiving last week.

Volatility sellers target United Rentals(URI): Option sellers are targeting the equipment-rental company, looking to milk premium from the stock's rich level of implied volatility.