Option traders appear to be setting up for a bullish move on Cypress Bioscience, Inc. (CYPB). Traders plowed into 1,305 new call option contracts -- 19.19 times the average volume -- on the stock on Friday. And we know that traders were eager to get into this trade because 100% of the trades came in on the ask price.

Cypress has been in a downtrend since hitting a high around $10.00 in July 2009. The stock closed Friday at $3.39, down 10.79% during the past month.

Option traders appear to be setting up for a bullish move on ProLogis (PLD). Traders plowed into 1,067 new call option contracts -- 2.81 times the average volume -- on the stock on Thursday. And we know that traders were eager to get into this trade because 95% of the trades came in on the ask price.

ProLogis looks like it formed a bottom in early July and has since formed a higher low in August. The stock closed Thursday at $10.92, down 0.18% during the past month.

Option traders appear to be setting up for a bullish move on Market Vectors Agribusiness ETF (MOO). Traders plowed into 2,601 new call option contracts -- 20.81 times the average volume -- on the stock on Wednesday. And we know that traders were eager to get into this trade because 89% of the trades came in on the ask price.

The ETF closed Wednesday at $45.60, up 4.35% during the past month.

Options traders appear to be setting up for a bullish move on Host Hotels & Resorts Inc. (HST). Traders plowed into 2,416 new call option contracts -- 5.39 times the average volume -- on the stock on Tuesday. And we know that traders were eager to get into this trade because 96% of the trades came in on the ask price.

Host Hotels has been consolidating in what looks like a bullish pennant for the past few months. The stock closed Tuesday at $13.97, down 3.85% during the past month.

Option traders also look like they are preparing for a bearish move on Leucadia National Corp. (LUK). Traders bought 1,504.00 new put option contracts -- 5.88 times the average volume -- on the stock. A full 100% of these trades also came in on the ask price.

The stock closed Tuesday at $22.69, up 5% during the past month.

Option traders appear to be setting up for a bullish move on Cogent Inc. (COGT). Traders plowed into 1,571 new call option contracts -- 3.27 times the average volume -- on the stock on Friday. And we know that traders were eager to get into this trade because 99% of the trades came in on the ask price.

Recently, 3M Company (MMM) announced that it was going to acquire Cogent for $10.50 per share. The stock closed Friday at $11.01, up 19.53% during the past month.

With the merger war between Dell, Inc. (DELL) and Hewlett-Packard Company (HPQ) at last drawing to a close with the latest $33 a share offer from HP for 3par, Inc. (PAR), tech stocks have really been in focus lately. A spate of merger and acquisition action has prompted a renewed focus on information technology companies, particularly cloud computing stocks.

However, don't be fooled into thinking that a bunch of big spenders in the technology sector means that all tech picks are doing well. In fact, a number of big name blue chips in the industry continue to face very difficult roads ahead. Here are 5 blue chip tech stocks stumbling right now:

Option traders appear to be setting up for a bullish move on TransDigm Group Incorporated (TDG). Traders plowed into 1,865 new call option contracts -- 84.77 times the average volume -- on the stock on Thursday. And we know that traders were eager to get into this trade because 96% of the trades came in on the ask price.

TransDigm has been hitting 52-week highs for a few days in a row now. The stock closed Thursday at $61.25, up 7.65% during the past month.

Option traders appear to be setting up for a bullish move on Rehabcare Group Inc. (RHB). Traders plowed into 2,192 new call option contracts -- 18.9 times the average volume -- on the stock on Tuesday. And we know that traders were eager to get into this trade because 100% of the trades came in on the ask price.

Rehabcare is sitting just above support at $16. The stock closed Tuesday at $16.56, up 23.16% during the past month.

Option traders appear to be setting up for a bullish move on Cobalt International Energy, Inc. (CIE). Traders plowed into 1,553 new call option contracts -- 4.65 times the average volume -- on the stock on Monday. And we know that traders were eager to get into this trade because 98% of the trades came in on the ask price.

Cobalt just bounced up off of support at $7. The stock closed Monday at $8.25, down 1.32% during the past month.

Option traders appear to be setting up for a bullish move on Janus Capital Group (JNS). Traders plowed into 1,010 new call option contracts -- 7.77 times the average volume -- on the stock on Friday. And we know that traders were eager to get into this trade because 99% of the trades came in on the ask price.

Janus Capital closed Thursday at $9.51. The stock has dropped 9.86% during the past month and is currently sitting above support at $9.

Option traders appear to be setting up for a bullish move on CA Technologies (CA). Traders plowed into 4,799 new call option contracts -- 13.87 times the average volume -- on the stock on Thursday. And we know that traders were eager to get into this trade because 98% of the trades came in on the "ask" price.

CA Technologies closed Thursday at $18.13. The stock has dropped 7.64% during the past month, but it is currently sitting at support just above $18.

Investors pushed up call option prices in the medical instruments and supplies industry and pushed up put option prices in the diversified utilities industry Wednesday.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future and they want to take advantage of that movement by buying calls.

The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.

Investors pushed up call option prices in the electric utilities industry, and also pushed up put option prices in the management services industry today.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future, and they want to take advantage of that movement by buying calls.

The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.

Bullish Volatility Skews

Unisource Energy Corp. (UNS)---part of the Electric Utilities industry---came in at the top with a volatility skew of 1.15. This shouldn't be a surprise as UNS is up 7.37 percent for the past month.

The stock market had a pretty good run last week, with the Dow Jones gaining about 3.3%, the S&P 500 adding +3.5% and the Nasdaq tacking on +4.2%. Favorable corporate earnings from some big name stocks helped lead the charge, and gave way to new optimism for many stocks.

But don't think this means that the market is going to be smooth sailing from here on out. The bottom line is that a number of companies are still struggling, after just posting poor earnings or issuing warning signs as they approach their earnings date.


To keep you out of the worst stocks, here are 3 big name blue chips to sell now:

Health care stocks are seen as low-risk investments by many stock market investors. After all – folks will always get sick, right? While that may be the case, it's an oversimplification to say that all health care stocks then have a built in customer base. The fact of the matter is that the health care industry has seen a big shakeup in the wake of Obama's health care reform bill and not all stocks in this sector are adapting well.

To keep your portfolio in perfect health, here are three big-name health care blue chips to sell now.