Options flow in TJX is 7x normal today with significant put trading as shares trade near $19.90, down 1.04 . Briefing notes a downgrade from Jefferies this morning, and most of the put volume is due to a bearish ratio spread in which a customer bought 3000 Dec 20 puts for 1.45 against a sale of 6000 Dec 17.5 puts for 35cents. For the net debit of 75cents, maximum gains are realized if shares are at 17.5 in 15 days on December expiration.

UST (UST, news, chart, volatility) is up 28 cents to $68.95 and volume in the options market is running 21 times the usual on heavy selling of January 65 puts. Several large blocks traded for 45 cents a contract this afternoon and, with Altria (MO) expected to close the deal on its acquisition of UST within the next two months at $69.50 per share, some writers might be taking in the premium on the view the deal is very likely to go through. The acquisition passed US regulatory review on October 16. Moreover, “UST Inc. said Thursday (December 4) its shareholders approved the acquisition of the smokeless tobacco company by Altria Group Inc. for $10.4 billion,” according to the Associated Press.

US Airways (LCC, news, chart, volatility) and some of the airlines are getting a lift from falling crude oil prices Thursday (see 1:30 Comment). The AMEX Airline Index (.XAL), a cash settled index of 13 airline stocks, is up .90 to a three-week high of 21.23. Shares of US Airways are up 86 cents to $7.03 and options volume is running at two times the average level. 5,765 calls and 1,040 puts have traded. The December 7.5 calls are leading the order flow, with 4,600 traded and almost 80 percent trading on the offer. ISE Sentiment data confirms opening customer orders. AMR (AMR) Jan 10s are seeing similar activity and action has been picking up in Delta (DAL) December 10s as well.

Dreary Month of November

Magna International (MGA, news, chart, volatility) is up 42 cents to $27.71 the day after being mentioned in a CNN Money piece titled, Buy American? Betting on a Big Three Bounce. According to Paul La Monica, “Ed Maraccini, a portfolio manager with Optique Capital Management in Milwaukee, said his firm owns auto-parts manufacturer Magna International and would be comfortable buying more at current levels…” In addition, MGA, “has a healthy balance sheet — $2.4 billion in cash and just $685 million in debt”.

Some options traders seem to agree. Volume is running at 42 times the average daily. Large blocks of in-the-money December puts traded bidside around 11:00 ET, which appear to be closing trades. Meanwhile, the January 30 calls are the most actives. 17,600 have traded, compared to open interest of only 38. Most traded on the CBOE and hit offerside, suggesting opening call buying on the auto parts maker.

Juniper Networks (JNPR, news, chart, volatility) options are trading 4 times their normal pace, with 22,000 contracts on the tape at midafternoon. Shares are trading off 5.8%, near 15.70 and flow shows buyers of Dec 16 calls and puts in an aggressively legged straddle bought for 2.65 6000x just after 10am when shares were near 16.06. ISE data shows account type was a non-customer firm or broker-dealer account and may indicated a play for relatively cheap 70% implied volality versus recent realized near 90%.

The US Oil Fund (USO) is breaking to new record lows, as crude oil gets that sinking feeling once again Thursday. Crude is down $2.65 to $44.14 a barrel and recently hit four-year lows of $43.79. Volume in the US Oil Fund is runing twice (200 percent) of the expected for this time of day, with 29,000 calls and 28,000 puts traded.

Volume in electric utility NRG Energy (NRG, news, chart, volatility) is running at three times the normal levels, with 6,700 puts and 1,275 calls traded. The top trade of the day is a block of 6,000 January 25 puts traded on the AMEX at 11:30. It hit on the offer for $4.00 and is possibly tied to a block of 450,000 NRG shares that traded for $23.50 about six minutes later.

Business Software Developer Macrovision (MVSN, news, chart, volatility) implied volatility is moving higher. Shares are down 8 cents to $10.54 and implied vols in the December 12.5 calls, the day’s most actives, is 115 percent, up from about 85 the day before. 1,100 contracts have traded and today’s total volume of 1,200 contracts represents three times the average daily activity for MVSN options. Directional sentiment based on the order flow is 85 percent bullish.

Starbuck’s (SBUX, news, chart, volatility) shares are up 27 cents to $8.91 after the company’s CFO Alstead said at an investor meeting in New York that he found a way to save another $200 million through cost cuts. The lookie-what-I-found news sparked a rally in shares, which hit $9.41 in morning trading. It also triggered a flurry of activity in the December 10 calls. Almost 20,000 have now traded, compared to open interest of 3,833. About 61 percent has traded offerside, with recent trades including two blocks (1,425 ea.) traded for 19 and 20 cents with the stock at $8.80 and down 6.5 percent from best levels of the day.