By Pete Najarian, co-founder of OptionMonster

NEW YORK -- Lowe's ( LOW)has been rising with the recovery in the housing market, and Monday the home-improvement chain saw some bullish option activity.

OptionMonster's tracking systems show that a trader sold the October 29 calls for an average of $2.54 and bought the November 32 calls for about 72 cents, with about 10,000 contracts in each leg. Volume was below open interest in the October calls but not in the Novembers, indicating that the trader was rolling a long position forward by a month and to a higher strike price.

Owning calls locks in the price where investors can buy the stock, so they rise when shares go higher. The October 29 calls had already performed well, so Monday's trader is closing that position before it expires at the end of next week and is repositioning them in the November contracts in hopes of further gains, collecting a credit of about $1.82 in the process.

The stock fell 0.69% to $31.55 Monday. Lowe's shares have trailed those of larger rival Home Depot but have a very similar trading pattern, and on Monday R.W. Baird raised its price target for HD.

Calls outpaced puts in Lowe's by 24,000 to about 1,900. Total option volume was more than five times greater than average.

Najarian has no positions in LOW.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.