Apple, Sybase Options Lure Bulls

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.

Bears think VeriFone Holdings(PAY) is at the end of line: The maker of credit-card readers has rallied to a key resistance level at $21, and now the bears are stepping in. The maker of credit-card readers has rallied to a key resistance level at $21, and now the bears are stepping in.

Trader sees Sybase(SY) over $50: The database software company hasn't traded for $50 since October 1995, but one big trader apparently thinks that it will hit that level by late spring.

Cemex(CX) faces range bound strategy: The cement producer has climbed back to a key resistance level, but one trader is betting that the stock can go no further.

Potentially bearish Apple(AAPL) pattern dies: Traders piled into the stock, taking it well away from the potential pattern's trigger point, initially on some rumor of a potential stock split that turned out to be bogus. The digital video-recording company is breaking higher ahead of its next earnings report Monday, and one trader is extending a bullish bet on the stock.

Look before jumping into LEAPS: As if we need more confusion to the already-perplexing lexicon of the options world, we must also contend with the Long Term Equity Anticipation Security.

Wednesday Pre-Market:

All indexes break above resistance: The intermediate-term downtrend is broken after the NDX, SPX, and RUT all managed breakouts above their 50-day averages that held.

Trade looks for pullback in Ross Stores(ROST): The discount chain came within less than $1 of making a new all-time high yesterday, prompting one trader to position for a modest pullback.

What's behind put activity in Pinnacle Entertainment(PNK): Shares of the casino operator have rallied sharply for the last two days, but the latest option action appears to be bearish.

Call seller takes profits in Omnicom Group(OMC): Shares of the advertising company are rebounding from a selloff earlier this year, and one trader is taking profits.

Options jump as TRW Automotive(TRW) faces stock sale: Options volume surged to in the auto-parts maker yesterday as the company's biggest investor prepares to cut its stake.

-- Reported by David Russell of OptionMonster in New York.

>To order reprints of this article, click here: Reprints