Dresser Rand Group is an oil-equipment name, and it was discovered by the energy bulls yesterday.

OptionMonster's tracking programs detected the purchase of more than 2,000 September 70 calls, most of which priced for $1.80. Volume was more than 30 times open interest at the strike, indicating that new money was put to work on the long side.

Long calls lock in the price where shares can be purchased, so they have the potential to generate significant leverage from even a modest rally. A 20 percent gain in the stock price, for instance, would result in a profit of almost 100 percent. The contracts also spare the investor the difficulty of timing an entry.

The most popular short positions of the year are causing pain for hedge funds and bearish investors alike, after many of these heavily shorted names have rallied this quarter. This is a "worst nightmare" situation for short sellers, CNBC's Jim Cramer said on "Squawk on the Street" Tuesday.

Shares of American International Group are up more than 25 percent year to date. Where the stock goes from here may depend on how quickly AIG starts returning capital to shareholders, analysts say.

After earnings in early May, AIG CEO Robert Benmosche told CNBC that the company's priority was to deal with its debt in order to ensure it maintains a strong credit rating. After that, it will look at a dividend and then potentially a stock buyback.

"As we continue to work on our capital plan and work with the Federal Reserve, our next priority would be to put a dividend on the stock, because we think that will increase the potential buyers," Benmosche told CNBC. "We're also looking at potential stock buybacks, as we progress through the year."

Virgin America said its losses are declining and it could stage an initial public offering as early as next year.

The San Francisco-based carrier, which is adding two new routes this month, has reduced losses after restructuring debt owed to the British company Virgin Group, and could stage an IPO in late 2014 or 2015, CEO David Cush said in an interview with The Associated Press.

In a filing with the U.S. Transportation Department, Virgin America said its 2012 net loss widened 45 percent to $145.4 million. However, its fourth-quarter loss narrowed to $25 million from $30.8 million in the same quarter a year earlier. In the first quarter of 2013, the loss narrowed to $46.4 million from $76 million.

Netflix is the year's best-performing stock in the S&P 500, but some analysts couldn't disagree more about the company's valuation. Two top analysts squared off Monday on CNBC on where they think the stock is headed.

"Our thesis on Netflix is that this company is a television network company, and if you believe that, their margins are going way up over the balance of this decade, the earnings per share will be going way up. The market is starting to understand that," said Barton Crockett, analyst at Lazard Capital Markets. Crockett holds a $325 price target on the stock with a "buy" rating.

Frontline has been falling for the last three years, but the bulls took the helm on Friday.

OptionMonster's monitoring systems detected heavy call volume in the oil-tanker company, with some 2,700 of the June 2 contracts purchased against previous open interest of just 205. Premiums started at $0.15 and then doubled to $0.30 as the shares advanced.

Calls lock in the price where investors can buy stock, and they can deliver significant leverage because they're so cheap to buy. Traders often uses them to keep a trade from running away from them while reducing the amount of capital at risk.

Big media stocks have been riding high this year as companies have been able to find ways to get paid for content despite a weak economy. But with the sector sporting a nearly 30 percent gain in 2013, it may be time to change the channel on some.

"What makes great dominant media companies good investments and good businesses is their ability to implement price increases given their competitive advantages," said Jaison Blair, an analyst at Telsey Advisory Group. "Our view has been in a slow-growth environment these companies can still implement price increases."

During the week of May 13, Applied Materials, Brocade and Cisco report. All three are dividend payers, they each possess market-moving potential, but not all three are buys. In a high-unemployment economy, Cisco continues to benefit from business' investment in efficiency. Applied Materials struggles under the weight of cheap energy. Analysts expect little change in Brocade's year-over-year results.

Don't forget that as the reporting date nears, option premium typically increases, making it difficult to profit from buying options. Instead, look to sell premium through covered calls and credit spreads. All else being equal, credit spreads can provide hedging opportunities while also allowing investors to benefit from the increased option premium.

Springtime means the official start of wedding season, that glorious spell extending roughly from April to October when beaming brides-to-be get a shine in their eye for all things wedding-related.

Market research specialist IBISWorld puts the size of the wedding industry and related services at a whopping $50.6 billion. As consumers expand their disposable incomes again, the wedding industry is expected to grow by 2.3 percent over the next five years, IBISWorld forecasts.

From dresses to engagement rings, to household registries and honeymoon vacations, this means big business for the companies that cater to this industry, fostered by shows like Say Yes to the Dress on Discovery Communications' TLC channel and Pinterest wedding boards (a growing number of single females are even creating "secret" boards dedicated to weddings and baby).

Materials have lagged all year, but one option trader is betting that the sector will go from worst to first.

OptionMonster's monitoring programs detected unusual activity in the Materials Select Sector SPDR Fund yesterday, with some 14,000 June 42 calls bought for $0.20 and $0.21. Volume surpassed the strike's previous open interest of 9,730 contracts, indicating that new positions were initiated.

Calls lock in the price where shares can be purchased in the exchange-traded fund, whose big members include Monsanto and DuPont. Because they are relatively inexpensive, the options can generate significant leverage on a small move in the stock. For instance, those June 42s will return more than 800 percent if shares advance just 10 percent in the next 7-1/2 weeks.