Options Recap: Nexen, KLA-Tencor, S&P 500

OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.

By David Russell, a reporter at OptionMonster .

Options point to volatility in Nexen (NXY): One big trader sees volatility in the future for the Canadian energy company and is buying puts and shares.

Trader bets against consumer staples: At least one big investor is positioning for a pullback in consumer staples shares by early next year, buying puts in the Consumer Staples Select Sector SPDR ( XLP).

Trader upbeat on Japanese stocks: One investor apparently thinks Japan's equities will rise next month and is using options in the iShares MSCI Japan Index ( EWJ) to maximize profits from the move.

Large trade is bullish on KLA-Tencor (KLAC): Options trading turned bullish on the chip-equipment maker as at least one investor positioned for a near-term pop in the shares.

Import lessons in SPX patterns: The S&P 500 Index has presented a number of "head and shoulders" patterns over different scales and time frames, which has created a rare "nesting" effect in the index.

Wednesday Pre-Market:

Constellation Brands (STZ) up on outlook: The positive guidance for fiscal 2010 is an indication that the liquor company is ready to play catch-up with rival Diageo.

Traders mining calls in Arch Coal (ACI): Options traders were buying calls Tuesday as they looked for the coal producer's stock to return to recent highs.

Jobs, housing, oil data lead calendar: The calendar is packed for the day, with everything from employment to energy in the mix. The chances for strong crosscurrents and noisy trading are high, especially early.

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