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. Trader counts on Alkermes (ALKS - Get Report) to bounce: The drugmaker has fallen 23% in less than two months, but one large trader apparently believes that the stock will rebound by mid-January. Strategy tries to time Sun-Oracle (ORCL) deal: We have seen a number of trades over the last several months that revolve around the Sun Microsystems ( JAVA) takeover, and that continues today. Bearish play on Nordstrom (JWN) earnings: Nordstom reports earnings after the bell tomorrow, and one investor is positioning for a move lower. Where we stand for the S&P rally: Given the breakout to fresh year-to-date highs today, it seemed like a good moment to revisit the S&P 500 chart we have used for forecasting over the last several months. Why one trade bets on MetroPCS Communications (PCS): Shares of the communications carrier are hovering just above the low of last week, but large options action is very bullish. Bulls take the wheel at Oshkosh (OSK): The truckmaker has rallied eightfold since March, and the bulls expect it to keep on trucking through the December contracts. Wednesday Pre-Market: Eastman Chemical (EMN - Get Report) draws bullish bet: The company has broken out of a three-month range this week, and one trader is making a large bet that the stock will continue rising into 2010. Large bearish trade in Sprint Nextel (S - Get Report): The telecom stock rallied 20% Monday, but one big investor expects it to make new lows by mid-January. Intrepid Potash (IPI - Get Report) faces bearish trade: Bearish traders bought puts in large numbers yesterday in a bet that next spring won't be a bountiful one for the fertilizer producer. Trades reflect negative tone for CF Industries (CF - Get Report): The fertilizer company insists that it's worth more than $93 a share, but one big investor doesn't agree, and is using January contracts to back that opinion.
-- Reported by David Russell of OptionMonster in New York.