Bulls Are Hoping UPS Will Deliver

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United Parcel Service has pulled back from this year's highs, but some bulls are hoping that it will deliver some profits.

OptionMonster's tracking systems detected a large institutional trade in the transportation and logistics company yesterday. A trading sold about 13,000 April 80 calls for $1.76 and rolled the position to the July 85 calls, which were bought for $0.86.

Calls lock in the purchase price for the stock, so they can generate some nice leverage in the event of a rally. But these options will lose value if the shares don't rise within the designated time frame, so yesterday's trader adjusted his or her position to pick up another three months of upside exposure while looking for the stock to rise an additional $5.

UPS shares were down fractionally yesterday to close at $79.91. It sold off hard in late December after failing to break above its 200-day moving but then ripped to a new January high before easing back from that level in recent days.

Overall calls in the name outnumbered puts by about 29,200 to 3,300 yesterday, a reflection of the session's bullish sentiment. Its total option volume was twice the average amount.

—By CNBC Contributor Pete Najarian

Additional News: UPS Profit Falls Short; Issues Weak 2013 Guidance

Additional Views: Bulls Bank on Regions Financial: Najarian

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian owns UPS calls.

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