Bulls see bright picture in Arris

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Arris Group has been on a rocky ride since purchasing Motorola Home from Google last December, but the bulls tuned into the consumer-tech company yesterday.

OptionMonster's tracking systems detected the purchase of more than 5,000 February 15 calls, first for $2.05 and then $2.20 for the largest block of 4,274 contracts. The volume was almost 21 times the previous open interest in the strike, indicating that new positions were initiated.

These calls lock in the price where shares can be purchased in the maker of cable TV set-top boxes and broadband systems. They can generate significant leverage if the stock continues to advance while limiting the amount of capital at risk but will quickly lose value if the shares don't rise.

Arris rose 1.26 percent to $16.13 yesterday. It spiked above $17 after reporting second-quarter results on Aug. 7 but then gave up all of those gains in the rest of the month. Shares found support at their 50-day moving average coming into September and have been rising with it since then.

The company unveiled a new set-top box at the IBC 2013 industry conference in Amsterdam yesterday, seeking to combine various wireless functions in one device. Barclays initiated coverage on the name with an "overweight" rating on Wednesday.

Total option volume in the name was seven times greater than average yesterday. Only five puts traded in the session, a reflection of the day's bullish sentiment.

—By CNBC Contributor Mike Yamamoto

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Mike Yamamoto is managing editor for OptionMonster. Yamamoto has no positions in ARRS.