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) -- Bearish signs in Constellation Brands (STZ - Get Report) chart: Ahead of tomorrow's earnings report there is a large-scale potential bearish "head and shoulders" pattern on the daily chart of the alcoholic beverage company.

Bulls boosts bet on Indian bank: One big investor has been waiting for ICICI Bank ( IBN) to break through $40 and ups the ante by rolling forward a position by two months.

Abercrombie & Fitch (ANF - Get Report) trade looks for drop: The clothing retailer has been trapped in a tight range in the last month, but a large option order indicates that at least one trader apparently expects the stock to fall soon.

Subtle bullish pattern in Caterpillar (CAT - Get Report): Price patterns can often emerge when we least expect them to, even in the relative absence of immediate catalysts. A case in point is showing now on Caterpillar's chart.

CIT Group (CIT - Get Report) attracts bullish trade: Options action is turning bullish less than a month after the business lender emerged from bankruptcy protection.

Smith & Wesson (SWHC) bulls gun for rally: The gun maker has been languishing since making a big surge last spring, and now the bulls think it will shoot higher again.

VIX hits new 16-month closing low: The S&P 500 has kicked off the New Year in style, which has driven its volatility index to its lowest level since August 2008.

Allos Therapeutics (ALTH) receives vote of confidence: The biopharmaceutical company has been pushing higher for the last month, and one investor is confident it will hold its hold its ground.

El Paso (EP) draws large volatility trade: Put buying in El Paso caught our attention this morning, but on further inspection it wasn't as bearish as it first appeared.

Wednesday Pre-Market:

Options set another record in 2009: Aided by an explosion of option trading in December, annual volume for 2009 hit a record for the seventh straight year, according the Options Industry Council.

Why bears are playing Mindray Medical International (MR): The Chinese medical-device stock has ripped to levels where it traded before last year's market crash, and one trader called the top.

How trade "straddles" Tempur-Pedic International (TPX): Shares of the mattress company gapped higher yesterday, prompting one investor to write both calls and puts with a straddle trade.

Mexico ETF attracts huge trade: The iShares MSCI Mexico Investable Market Index ( EWW) exchange-traded fund pulled back slightly from a 52-week closing high as the options volume spiked yesterday.

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