GFI Group (CFIG, news, chart) is seeing four times its normal trading volume on call buying. With shares up 10 cents to $8.85, most of the day’s action is in the December 7.5 calls. 7,000 contracts traded askside. Open interest is 152 contracts. There is no company specific news on the day and the activity appears to be bottom fishing. Shares of the inter-dealer derivatives broker sit not far from four year lows and have been under pressure amid concerns about revenue growth. However, last week, William Blaire said GFIG is well positioned to benefit from long-term growth in OTC derivatives and boasts a strong balance sheet with minimal credit and market risk. Some options traders seem to share that bullish view.

Seeing strength in Bunge (BG, news, chart) as corn prices fall limit down. BG was recently trading up $2.83 to $108.35. Corn futures are limit down, or off 30 cents to $7.38 after the lastest USDA’s acreage report showed planted corn above expectations. BG and other ethanol producers (ADM, VSE, CPO) have been under pressure lately, as flooding in the midwest pushed corn prices higher on supply concerns. Today, however, ethanol producers are mostly higher. In the options market, BG call volume is outpacing puts by a margin of almost 10-to-1. Interest is picking up in the July 115 to 120 bull call spread, with recent blocks of 115s trading offerside or $1.92 a contract, while the same size of 120s traded bidside or for 92 cents. While possibly closing trades, it seems more likely that these are bullish spreads or bets that BG will continue rallying from here. However, after today, the July options only have 13 trading days of life remaining.

Look for a possible increase in King Pharmaceuticals (KG, news, chart) options volume after Briefing said the stock was moving higher on takeover chatter According to the chatter, Pfizer (PFE) is eyeing KG. This is the first time we’ve heard this particular chatter and have no idea if there is any substance to it. (One player notes: you’d have to be dumber than a range cow to buy on a chatter on the last trading day of the quarter.) KG hit a morning high of $10.56 and was recently up 21 cents to $10.47.

Tyson (TSN, news, chart) is seeing active trading on put selling. Total volume is running 7 times the normal, with 34,000 TSN puts and only 840 calls trading on the day. The stock is up 44 cents to $15.08 on news the company has acquired majority ownership of the leading poultry processing company in India. Initial annual sales from the venture estimated to be $50 million with anticipated growth as operations expand. In the options market, the October 12.5 and January 12.5 puts are the most actives. 36,000 contracts have traded, with two large blocks (17,910 of the Octs and 7,959 of the Jans) recently trading bidside.

Anheuser Busch (BUD, news, chart) is up 49 cents to $62.75 and hit a morning high of $62.94 amid chatter that InBev might raise its bid for the St. Louis-based brewer. In the options market, traders are leading on the bullish side. A total of 6,300 BUD calls traded, compared to 2,200 put options. The July 65 calls are the most actives, with 3,200 contracts traded and 70 percent hitting offerside. Directional sentiment based on today’s early order flow is 54 percent bullish.

Myriad Genetics (MYGN, news, chart) is seeing two times its normal trading volume after the biotech company reported results from its Phase III trial of Flurizan for Alzheimer’s. The study didn’t achieve statistical significance. The news sent MYGN down $2.42 to $45.51. In the options market, players are selling premiums now that some event risk has passed. 23,000 MYGN puts and 33,000 calls have traded and implied volatility in the at the money puts and calls is falling back to the mid 30s, down 60 percent from Friday’s levels.

XL Capital (XL, news, chart) implied volatility is higher as the stock sinks to a new 52-week low. Shares of the insurance company have been pummeled in 2008, down 56.3 percent year to date. Today, XL is down $1.79 to $21.98 and, in the options market, 3,000 XL puts have traded, compared to 500 call options. Implied volatility of the at the money puts is moving towards 100 percent, up 20 percent on the day. No news on the stock. Earnings due out mid to late July.

General Motors (GM, news, chart) implied volatility has gapped higher amid ongoing selling in shares. The stock is down another 82 cents, or 7.1 percent, to $10.73 amid ongoing concerns about auto sales, energy prices, and the automaker’s financial problems. Monthly auto and truck sale figures due out tomorrow. In the options market, 27,000 GM puts have already traded today, more than three times the number of calls. Implied volatility of the at the money is moving above 110 percent, up 20 percent from Friday’s levels.

Wachovia (WB, news, chart) is seeing active trading early Monday after the NY Post reported that Prudential might soon sell its stake in a brokerage partnership. Under terms of a five year old agreement, which created a joint venture of Prudential’s retail brokerage with Wachovia’s brokerage platform, Prudential can force Wachovia to buy its 23 percent stake in the partnership starting today. The is another potential headache for WB, according to the report. The pace of the selling picked up in morning trading on chatter that a sale of the company could happen at a discounted price. Shares are trading down $1.15 to $15.05. In the options market, 6,600 WB puts and 3,614 calls traded in the first 30 minutes. The July 15 puts are the most actives. 4,080 contracts traded, with 80 percent hitting askside.

Unimpressed. Record high crude oil prices, more fallout from the financials, and another week of sluggish economic data failed to move the CBOE Volatility Index (.VIX) much. With 15 minutes left in the day’s trade, the fear gauge is down .33 points on the day and up less than a point on the week. The lack of movement in the VIX seems to reflect the fact that, while Thursday was a volatile trading session, it was the exception rather than the rule. Taking out Thursday’s tumble, the average daily move in the S&P 500 Index (.SPX) was just 3 points this week. Today, the index is sits near unchanged heading into the close. So, it might take more than a one-day tumble to significantly drive up risk perceptions and push the VIX back above 30, where it was the last time the S&P 500 was trading at these levels in March.