Virgin Media (VMED, news, chart, volatility) shares are up 12% to $5.02 and call volume is 18x normal as a seller appears to be liquidating March 10 calls for 15 cents. Total open interest at the strike is just over 10,000 contracts. 2700 contracts have traded so far, priced at 15cents. Data shows the position was put on for 65cents in early October when share were at $6 and the seller may have decided to realize the loss on at least part of the position for year-end tax purposes.

Flow in the iShares Real Estate ETF is relatively bullish, with a block of Jan-09 calls bought to open, and a vertical put spread sold, likely to close. The ETF is currently trading near 37.00 and 5000 Jan 37 calls were bought for $1.80 tied to a $36 hedge, followed by a sale of 4700 Jan 28-35 put spreads for 1.80. The calls open a new position, and the put spread may lock in a loss on the same trade, bought last week for 2.45 when shares were slightly higher.

Petroleo Brasileiro (PBR, news, chart, volatility) calls are seeing an uptick in activity. Recent trades include a multi-exchange sweep of 4,200 Jan 25 calls on the offer for $1.30. 5,000 have traded total and call volume is outpacing put activity by a ratio of four-to-1. Shares are up 58 cents to $24.31 after crude oil gained $3.00 to $42.03.

Puts on the iShares Long-Term Bond Fund (TLT) are active, as bonds get sacked during a shortened trading session Wednesday. The benchmark ten-year fell an impressive 1 22/32nd, as a strong jobs report, light volume, and long-awaited profit taking conspired to send prices lower and yields higher. TLT, which holds a basket of long-term Treasurys, is down $2.67 to $119.23 and 9,100 puts traded, compared to 2,400 TLT calls. Jan 120 and 115 puts saw the most action.

Integra Life Sciences (IART, news, chart, volatility) long-term calls are active. Shares are up 60 cents to $35.06 and 3,700 January 2010 calls at the $65 strike have traded. The days volume has come in trades of 250 contracts or less, with most of the action hitting on the offer for $1.70. With existing open interest of only 21, it looks like some ambitious traders are opening new bullish positions in the Plainsboro, NJ medical instruments company. The contract is more than 85 percent out-of-the-money.

Market Vectors Russia (RSX) January puts are active, after 10,000 traded at the 14 and 11 lines. The 14s hit bid-side for $1.50 while the 11s hit on the offer for 45 cents. Looks like closing of a vertical spread opened on 12/19 for $1.20. RSX is down 6.5 percent since that time, but that was not enough of a move to produce a profit–the spread showed a 15-cent loss instead.

Penn Virginia (PVA, news, chart, volatility) is up 86 cents to $25.94 and options volume is running at 20 times the normal levels. June 50 calls are seeing the bulk of the action. 3,700 traded, compared to open interest of 105. The volume has come in fewer than 400 contracts and 89 percent have traded on the bid. Some investors might be selling calls, perhaps against shares, on the view that a move beyond $50, or 91.6 percent, over the next six months is unlikely.

Unusual action in Charming Shoppes (CHRS, news, chart, volatility) calls today, as shares sit near $2.36, 66% below the 52w high of $7 (but nearly 4x the 52w low of 57cents). One trader appears to be making a relatively long-term bullish play, with a buy of more than 5000 10 strike calls that expire in Jan-2010 for 65cents, lifting implied vol at the strike nearly 27 points to 157%. Data shows at least a portion of the buying was opening for a customer account, but professionals appear to be confortable selling into the demand, with 65cent offers showing despite shares lifting a few pennies.

The CBOE Volatility Index (.VIX) is down 1.73 to 39.90 and making a run below 40 for the first time in almost three months (since Oct 2).

Liberty Media (LINTA, news, chart, volatility) is down 10 cents to $2.94 and options volume is running at 45 times the average daily levels. Most of the action is in the April 5 calls after a series of trades on the CBOE and the PHLX totaling 5,000 contracts recently hit on the offer for 30 cents. Existing interest is 1,143.