Pete Najarian thinks KLA-Tencor (KLAC) is a buy due to unusual options activity.

Positive sentiment on housing boosted shares of the XHB (XHB) which hit a 10-month high. On the Halftime Report Pete Najarian added that the volume of upside call buying suggested it could go even higher.

Jon Najarian suggests long Novellus (NVLS) due to unusual options activity.

Options activity suggest investors think shares of UnitedHealth (UNH) could soon move higher, likely due to a growing belief that the Obama administration has backed away from a public option to compete with private HMOs.

It seems options traders are bullish on both UnitedHealth and Wellpoint (WLP), explains Mike Khouw.

In the financial space I’m seeing bearish options activity in JPMorgan (JPM), muses Jared Levy.

Options trader Jared Levy has spotted unusual options activity in Human Genome Sciences (HGSI). Call buying suggests to Levy that this stock could move substantially higher. The bet could be linked to speculation that the company may be a takeover candidate with GlaxoSmithKline (GSK) rumored to be a likely buyer.

I like Marvell Technologies (MRVL) in the tech space, says Jared Levy, because their technicals look strong. I’d buy the stock today and sell the September 15 call ahead of earnings.