SanDisk (SNDK) is up $1.45 to $11.05 and Jan calls with strike prices ranging from 10 to 14 have been actively traded today. Bloomberg is reporting shares “rose the most in a month on renewed takeover speculation.” Sentiment in the options market is mixed, however, as the January calls had already developed significant open interest and some traders might be closing out positions on the heels of today’s 15 percent gain.

Options volume in AU Optronics (AUO, news, chart, volatility) is running at 16 times the average daily levels, amid active buying of Jan 7.5 call options. More than 3,000 have traded, with 99 percent trading ask-side. ISEE Sentiment Data suggests opening customer call buy orders in the Taiwan-based computer company. Shares are up 4.7 percent to $8.04.

1,500 MetLife (MET, news, chart, volatility) February 30 puts and 40 calls recently traded at about the same time as a block of 100K MET shares for $35. With calls hitting bidside $2.60 and puts offerside for $2.75, looks like a substantial collar on the insurance company.

Seeing a spike in Cavium Networks (CAVM, news, chart, volatility) put activity today, with what looks like a reloading buyer of at-the-money June 10 Puts. By noon a total of 1335 have traded, 10x the normal volume at the hour, with most priced for $1.50 as shares trade near flat at 10.57. A seller of these puts was seen on Dec 15th, collecting $2 for 1000 contracts when shares were at the same level and may be closing his position.

Cameco (CCJ, news, chart, volatility) is seeing unusual action. Shares are up $1.75 to $19 and total options volume is running four times the average daily levels. 6,500 calls 1,750 puts traded. Jan 20, Jan 22.5, and Feb 20 calls are the most actives. Looks like speculative call buying, as directional sentiment based on today’s flow is 81 percent bullish.

The CBOE Volatility Index (.VIX) is down 2.31 to 37.69 and hit three-month lows of 37.57 after the S&P 500 (SPX) moved to 919.07, just above its mid-December highs (918.57 on 12/8 and 918.85 on 12/17). SPX briefly broke above its 50-day (exponential) moving average after this week’s 5.85 percent run higher. VIX is at its lowest levels since Sept 29 and not far from SPX 20-day Historical Volatility of 36.8 percent.

JA Solar (JASO, news, chart, volatility) call options are active, as the stock continues its recent run higher. JASO is up 63 cents to $5.00 and up 53.8 percent on the week amid renewed interest in solar energy stocks. February 5 calls are the most actives, with almost 2,000 traded and 100 percent trading at the offer. Jan 5 calls are also active.

Corning (GLW, news, chart, volatility) is down a nickel to $9.48 and February 10 puts are actively traded. Almost 4,000 has traded, all in 950 contracts or less. Most of the day’s trades are hitting on the offer for $1.15. Implied volatility has lifted 5 points to 63. No news on the day. Earnings due out in late Jan, probably within the Feb expiration cycle.

A block of 5000 CIT (CIT, news, chart, volatility) Jan 5 calls were crossed on the ISE this morning for 25cents when shares were near 4.48. Data shows customer account as the buyer, possibly continuing flow seen Wednesday when the strike led the flow in CIT with 939 contracts. CIT earnings are expected after Jan expiry.

Radioshack (RSH, news, chart, volatility) shares are up a nickel to $11.99 and February 12.5 calls are active after a block of 4,000 recently traded bidside for 87.5 cents a contract. A block of 175K RSH shares traded two minutes later for $11.85, suggesting a possible buy-write strategy on the electronics retailer.