General Mills (GIS, news, chart, volatility) calls are active. 3,480 contracts have traded, which represents 8 times (838 percent) the expected volume for this time of day. December 65 and December 70 calls are seeing the lionshare of today’s activity. 3,000 contracts have traded, with roughly 90 percent trading on the offerside. Directional sentiment based on total order flow is 76 percent bullish. ISEE sentiment data confirms customer opening buy orders. Shares are trading up 11 cents to $62.40. No news today. Earnings expected around December 17th, perhaps falling within life of the December options.

Activity is picking up in Clorox (CLX, news, chart, volatility). Shares are down 25 cents to $57.16 and volume in the options market is running three times the usual. Recent trades include 1,000 January 55 puts traded offerside for $2.44 a contract, 2,000 January 50 puts traded bidside for $1.14, and 1,000 January 45 puts traded offerside for 64 cents. All traded at 10:50 ET on the ISE and appear to be part of a directional butterfly, where the strategist paid 80 cents for potential payoff of $4.20 if CLX settles at $50 per share at the January options expiration.

Synopsys (SNPS, news, chart, volatility) is seeing cautious trading ahead of its earnings report due out after the closing bell. Total options volume is running 15 times the usual, with put options dominating the order flow. 3,200 contracts have traded, compared to only 50 calls. The day’s trades have all been in fewer than 440 contracts and, with shares down 75 cents to $14.77, the January 10 puts are the most actives. 1,637 have traded, with 96 percent trading offerside. Since there is no existing open interest in the contract, some investors seem to be opening new positions in anticipation of some post-earnings volatility in shares of the system software maker.

Sandisk (SNDK, news, chart, volatility) is seeing bullish order flow early on renewed takeover chatter. Toshiba is being mentioned as a possible suitor. Shares are up 66 cents to $7.87 and 13,000 calls have traded, compared to 84 puts. Action is scattered in the December and January calls with strike prices between 8 and 10. However, the April 10s are the most actives, with 6,000 traded and 100 percent hitting at or near the offer.

Freeport McMoran (FCX, news, chart, volatility) is down $4.69 to $17.13 and put volume is running 14 times (1418 percent) the expected volume for this time of day. Trading is active on news of the company’s revised operating plan to deal with weak market conditions. FCX is suspending its dividend. Trading is volatile and today’s top trades includ 1,250 Jan-10 22.5 puts traded offerside for $10.60 and 1,250 Jan-10 15 puts traded bidside for $5.50, which is possibly a roll or an in-the-money vertical spread.

Progressive (PGR, news, chart, volatility) options order flow is decidedly bearish this morning. Total volume has jumped to six times the typical levels, with 5,300 puts and only 3 calls have traded. The Jan-09 puts at the 10 line are seeing the bulk of the action, with 99 percent trading on the offer. Open interest is 366, suggesting opening put buying. No news on the Ohio-based property and casualty insurance company today, but with shares down 74 cents to $12.90, it hints at bearish trading in anticipation of further share price weakness.

Some bears appear to be circling United Technologies (UTX, news, chart, volatility), as shares slipped 36 cents to $45.26 Tuesday. 3,000 UTX December 45 puts traded on the offer for $2.60 while 3,000 December 40 puts traded on the bid for 90 cents in afternoon trading. Open interest in the 45s increased by 2,951 and in the 40s, by 3,320. It looks like an opening bear put spread, where the strategist paid $1.70 and now stands to make $3.30 if UTX falls to $40 or less by December options expiration (16 days).

HCP Inc (HCP, news, chart, volatility), a REIT focused on healthcare facilities, saw 9 times average daily volume Tuesday, with increasing interest in December 17.5 puts. Shares were trading for $19.11 when an investor sold 4,800 contracts for $1.10. Total volume in the contract rose to 5,551, with 94 percent trading at or near the bid. Open interest increased by 5,471 contracts. With these contracts 8.4 percent out-of-the-money and 17 days left until expiration, some investors might be selling the rich premium (iv = 110 percent) and or willing to buy HCP shares if they dip to $17.50 or less.

Kohl’s (KSS, news, chart, volatility) December puts saw increases in open interest after a player bought the December 30/25 put spread for $1.60 and sold 1,500 December 22.5 puts for 40 cents Tuesday. Open interest increased in all three contracts, suggesting an opening position and one with a bearish bias that begins to yield profits if shares of the retailer fall to $28.80 or less at expiration. The max profits are in a range between $22.5 and $25, with the trade turning sour below $15.

Axis Capital Holdings (AXS, news, chart, volatility), a Bermuda-based property and casualty insurance company, saw increasing activity Tuesday. Volume rose to 38 times the normal levels, with most of the activity focused on the December 25 calls. It appeared to be mostly writing as a series or orders hit at or near the bid for $1.05 and $1.10 in afternoon trading. Open interest increased by more than 10,600 and seems to be opening call writes, perhaps against shares. AXS was trading near $23.60 at the time and therefore the contract was 5.9 percent out-of-the-money with 17 days left until expiration.