Lee shifted to the options space and the heavy activity today in Electronic Arts (ERTS). Najarian said the company has underperformed and struggled to show growth and profits. Still, he said 250,000 options contracts traded today versus 16,000 on a normal day. He said the bullish sentiment might be coming from rumors that Microsoft(MSFT) might be interested in acquiring it.

Pete Najarian says keep an eye on Smith International (STI) due to unusual options action. "That one looks awfully interesting!"

Options volume in Palm has been explosive, explains Pete Najarian. But if you trade this stock keep in mind there’s about 30% short interest in the name.

Pete Najarian also saw heavy activity in RealNetworks (RNWK).

Jon Najarian has spotted unusual options activity in AIG (AIG). The volume of calls suggests the stock is worth watching. The bullish sentiment appears to be driven by retail investors and day traders, with triple the normal volume making bets that the shares could trade as high as $65 by next month, explains Najarian. Najarian also says there were no signs that big institutions were involved in the surge in activity in the shares on Monday. The unusual activity happened in conjunction with a government report that said AIG’s once-desperate financial state has started to stabilize. And it also coincided with word that an influential lawmaker will consider easing the terms of the insurer's federal bailout once more.

I’m seeing a lot of options activity in General Electric (GE), adds OptionMonster Jon Najarian.

Scott Nations of NationShares suggests that investors are bullish on Procter & Gamble’s (PG) decision to expand market share. An unusual volume of $60 call buying suggests to him the stock could go higher. “I like being long calls here,” he says.

I’ve noticed that options traders are buying S&P 500 downside puts, muses Brian Stutland of Stutland Equities. I interpret that as a bullish protection play and expect the market to rally further.