Alcoa, Safeway Shares Expected to Gain

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) -- Bulls target Micron Technology(MU) before earnings: The chipmaker reports earnings after the bell Tuesday, and one investor is betting on the stock to rally.

Patient bulls shopping at Safeway(SWY): The supermarket chain's shares appear to be putting in a bottom after struggling for most of 2009, and now investors are wagering on the upside.

Level 3 Communications(LVLT) sees enormous put trade: The average daily option volume for the communications name has been fewer than 200 contracts, but today a single trade of 15,800 puts changed hands.

Alcoa(AA) chart shows bullish pattern: A bullish price pattern is active on the aluminum company's daily chart, in addition to an upgrade at Morgan Stanley(MS) and a major joint venture with Saudi firm Ma'aden.

GLG Life Tech(GLG) receives bullish trade: The maker of medical-research tools is consolidating at new highs, and one investor is betting on more upside in the New Year.

Trader bets Hudson City Bancorp(HCBK)will hold: Shares of the regional bank have been in an increasingly tight range, and one trader is betting that the stock will hold at least the bottom of that range.

Monday Premarket:

Late-day bulls target Dish Network(DISH): Dish saw a surge in call buying late Friday as investors positioned for the satellite-television stock to keep climbing in the New Year.

Heavy put buying in Western Digital(WDC): Shares of the hard-drive manufacturer have more than tripled in value in the last year, but it is put buying that dominated Friday's session.

Why bulls see UAL(UAUA) gaining altitude: UAL has been soaring along with the rest of the airline sector, and traders are betting that it still has friendly skies to travel.