Calls on Group 1 Automotive (GPI, news, chart, volatility) are unusually active today, with shares about 3% lower, near $10, and sellers of the July 12.5 calls leading the flow, using a sweep router to collect 1.20 to 1.30 for a total of nearly 2700 contracts this morning. Shares have been very volatile through the most recent phase of the economic crisis, from a 52w high of 30.24 in September to a low of 4.34 Oct 23rd. Today’s activity will create the largest block of open interest in the name, and suggests a view that upside will be limited well into 2009.

Ford Motor (F, news, chart, volatility) is seeing action Friday. Shares are up 53 cents, or 26.7 percent, to $2.68 on news General Motors (GM) might be looking to shed Saturn, Saab and Pontiac to win government loans. GM is up 55 cents, or 11. 4 percent, to $5.36 per share. In the options market, trading is brisk in Ford Motors. Recent trades include a block of 10,000 February 5 puts traded offerside for $2.85, which might be tied to a block of 640K shares that traded two minutes later. 14,000 puts have traded in all, compared to 41,000 call options. December 3 and January 2.5 calls are among the most actives, with more than 60 percent trading offerside. Implied volatility is falling towards 160, down from more than 200 Wednesday and more than 300 percent a week ago.

Citigroup (C, news, chart, volatility) December 7.5 and December 10 calls are the most actively traded equity options contracts. Shares are up $1.19 to session highs of $8.24 and recent trades include a multi-exchange sweep of December 10 calls hitting offerside for 40 cents per contract. 33,400 have now traded. Another 21,500 December 7.5s have also traded. Sentiment is bullish on the heels of the $20 billion (no strings attached?) capital injection from the US government. Shares are up 170 percent from the lows one week ago. Judging by the flurry of activity Friday morning, some players seem to be looking for further upside between now and December options expiration (21 days).

A block of puts traded on fast food drive-thru Sonic Corp (SONC, news, chart, volatility) this morning, possibly marking a quick exit to a short-put position established earlier this month. In the first 20mins of trading today, with shares up slightly at $8.27, 3500 Dec 7.5 Puts were crossed for 40cents on the ISE. Trade occurred near mid-market and this could be a liquidation of puts sold on 11/18 for 55cents when shares were about 35cents below today’s level.

Weatherford (WFT, news, chart, volatility) call options are actively traded Friday morning. Shares are down 28 cents to $12.51 after crude oil slipped $2.90 to $51.54 a barrel. In the options market, most of the activity is in the December 17.5 calls, with 3,500 contracts traded. The top trade of the day is 400 contracts traded offerside for 22 cents. Most of the day’s other volume has been in fewer than 300 contracts for 20 cents. Implied volatility is up 19 points to 111 percent.

The top trade in Intel (INTC, news, chart, volatility) today is a block of 3,500 April 13 calls, sold for $2.59 per contract. With open interest of 1,405, it looks opening. In addition, it was tied to INTC shares at $13.95. An investor might be selling these in-the-money calls against shares, bringing the cost of owning INTC to $11.36, with a possible gain of 14.4 percent if the stock is called away at $13 by April options expiration (140 days).

Commercial Mortgage Risks Still Loom

General Cable (BGC, news, chart, volatility) options volume is running double the usual. Shares are outperforming, up $1.38 to $16.29, on no news. Meanwhile, the May 12.5 and May 10 puts are the most actives, after 1,000 of the 12.5s traded mid-market for $2.80 and 1,000 of the 10s on the offer for $1.90. This was part of a spread, crossed by a broker on the PHLX for 90 cents.

General Electric (GE, news, chart, volatility) shares are more than 1% higher today, near $16.38 and a block of 12,000 June 30 calls were crossed on the PHLX for 18cents to open a new position. Buyer may be hedging upside risk in the name, or establishing a new long that needs an 80% climb in shares to pay off.

Chesapeake (CHK, news, chart, volatility) gapped down and is off $2.88, or 14.2 percent, to $17.35 per share after the company issued a regulatory filing to sell 50 million shares at $15.82, a 22 percent discount to its closing price Wednesday. The natural gas producer also registered to sell $1 billion of stock for general corporate purposes. Investors seem to have been blindsided, as shares were up nearly 20 percent on the week before the news. In the options market, bullish sentiment had been building as well. 33,000 CHK calls and 7,600 puts traded Wednesday, including 6,615 December 20 calls.