Calls on Petrohawk Energy (HK) are seeing active trading. Total volume is running 7 times the usual, with 25,000 call contracts trading, or roughly five times the number of puts. The stock is up $3.87 to $28.82 in sympathy with Penn Virginia (PVA). Shares of Penn Virginia rallied $10 to $63.00 a share after the company announced that its first well in the Haynesvill Shale produced double the firm’s expectations. The news has positive implications for HK because the company has agreements to buy leasehold intersts in the same area. Comstock Resources (CRK) is also considered a play on the same theme.

Trading is active in the iShares MSCI EAFE fund (EFA). Shares are up 49 cents to $76.77 and total volume in the options market is running three times the usual. Most of the action is on the call side of the chain, which includes an order for 15,950 of the September 79 calls. It appears that these contracts were sold for $1.80 each, perhaps naked or part of a covered write. The EAFE tracks the stocks within the MSCI Europe, Asia, and Far East index, which a market value weighted index including 21 market economies: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

The CBOE Volatility Index (.VIX) is drifting, down .51 to 17.63, and not far from session lows (17.56), as trading thins out and players head home to enjoy the summer weekend. For the week, the volatility index is up .3 points and its lack of movement reflects anticipations for uneventful trading during the summer doldrums. Indeed, volatility has already seen a noticable decline. Today, for example, the S&P 500 Index (.SPX) has traded in a very narrow 6-point range. The 20-day statistical volatility of the index is falling below 15 percent and its lows of the year. Trading in other markets is quiet as well. Crude oil settled up 76 cents to $127.38. Gold finished up $10.00. The benchmark ten-year rose 7/32nd, bringing its yield back down to 4.05 percent. The buck was little changed on both the yen (105.47) and the euro (1.555).

Imclone (IMCL) is seeing four times its normal trading volume. More than 22,000 calls and 8,566 puts have traded on the day. Shares are up 27 cents to $43.27 after Leerink Swann (?) started the stock with an outperform rating and a $55 price target. Firm believes that company’s pipeline will get better recognition and that Erbitux can generate sustained growth in the next few years. ImClone also presents at the five-day ASCO Annual Meeting in Chicago, which started today.

8,500 Micron Technology (MU) October 8 calls recently traded on the offer. Open interest is 3,510 contracts. Stock is down a nickel to $8.04. Earnings due out late June.

Harris (HRS) is seeing increasing volume. The stock is up $3.56 to $65.52 after Dow Jones reported that the company is “fielding expressions of interest from potential buyers”. In the options market, 11,000 HRS calls have traded, compared to 2,554 puts. However, sentiment is neutral, as some of today’s activity reflects closing trades. HRS has been mentioned as a potential acquisition target since May 12. The stock is up 14.3 percent since then and some traders are probably closing out bullish trades and banking some profits.

Energy Conversion Devices (ENER) and a handful of other solar names (FSLR, LDK, SPWR, STP) are showing relative strength Friday after German lawmakers ironed out an agreement to reduce state subsidies. Existing rules obligate utilities to buy electricity from solar companies at above market rates, but the reductions in those subsidies announced today were not as dramatic as many investors feared. A sort of relief rally is pushing the sector higher and shares of Energy Devices are up $6.43 to $61.13. 13,000 ENER calls have traded, compared to 7,186 puts.

Energen (EGN) is seeing four times its normal trading volume on increasing call buying in the January 75s. The stock is up 42 cents to $73.68. In all, 4500 have traded, compared to only 443 put options. Sentiment based on today’s trading activity is 92 percent bullish. There isn’t any news of late, but we note that the open interest in the January 75 calls is 15,632 and 15 times greater than any other EGN options contract.

Union Pacific (UNP) is seeing an increase in buying interest in the January deep out of the money call options following a three-day rally in transportation stocks. The Dow Jones Transport Average added 102 points Tuesday through Thursday. Today, UNP is up 51 cents to $80.86 and calls with strike prices ranging from 90 to 100 are trading on the bid. In all, 11,000 calls have traded, compared to 414 points. Directional sentiment based on Trade Alert data is an overwhelming 95 percent bullish.

Salesforce.com (CRM) calls are seeing heavy trading amid dubious chatter Google (GOOG) might be interested in the company. The stock is reacting, up $1.78 to $73.29 and 9,100 calls have traded, compared to 1,080 puts. Most of the action is in the June 80 calls, where speculators are looking for a cheap way to play the stock for a move higher. Of the 4,000 plus contracts that have traded, 64 percent have traded on the offer. Action also seen in the CRM June 75 and June 85 call options.