Bullish options activity in

Cendant

(CD)

suggests investors are checking in to the hotel franchiser, hoping the company has finally put its accounting woes behind it.

The price on Cendant's May 12.50 calls was up $1.25 ($125) to $3.50 ($350) on volume of 250 contracts Wednesday, following strong action on Tuesday, when almost 3,300 of the company's April 15 calls changed hands.

Investors abandoned Cendant in April 1998, after revelations of accounting fraud emerged from the company's breakneck merger and acquisition activity. Recently, though, its shares have been on the rebound, rising more than 60% year-to-date. Shares slipped today, falling 40 cents to $15.31 around midday.

"Investors think it's cleaning up its act," says Lillian Seidman, options trader at

Miller Tabak

. The company is due to report earnings next Wednesday before the market opens, and Seidman says despite the fact that the options premium is a "little high," she thinks it's a good way to play the stock right now.

Options investors are also showing some old tech favorites -- and semiconductors in particular -- a little kindness today, for a change. A bullish

Salomon Smith Barney

call including a

group upgrade from outperform to neutral sparked confidence in a range of tech names, not just those mentioned in the report.

More than 2,600

Micron Technology

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April $47.50 calls traded with the price running up 40 cents ($40) to 90 cents ($90). Micron stock jumped $3.98, or 10.4% to $42.10.

Nearly 8,300

TheStreet Recommends

Microsoft

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May 60 calls traded, with the price rising 10 cents ($10) to $4.10 ($410). Microsoft is up 92 cents to $60.60.

Semiconductors were on fire following the Salomon note, with the

Philadelphia Stock Exchange Semiconductor Index

jumping 10% at midday.

And more than 16,000

Intel

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April 27.50 calls traded, with the price up 75 cents ($75) to $1.25 ($125). Intel stock is up $2.87, or 11.6%, to $27.64.

The price of

Applied Materials

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July 45 calls was up $3.10 ($310) to $9.50 ($950) with about 4,100 contracts changing hands. The stock was up $4.10 to $46.76 at midday.

Seidman expressed confidence in today's tech stock upside. She sees 1735 in the

Nasdaq 100

as "a good support level." It is currently sitting at about 1655.

"It may not be a bear market rally," she says of today's action.