5000 of the Cicso (CSCO, news, chart, volatility) Jan 14-15 put spreads were sold for a 9 cent credit this morning on the CBOE. Shares are currently near 16.36 and with 87,000 contracts of open interest at the 15 strike, the seller may be closing a long put position. Data shows 5000 traded for 44cents Dec 17th when shares were slightly higher.

Iron Mountain (IRM, news, chart, volatility) puts are actively traded. Shares of the Boston-based business services company are down 50 cents to $24.23 and 4,000 puts have already traded, compared to 394 calls. Jan 22.5 and 20 puts are seeing most of the action. It appears to be primarily put buying, perhaps on concerns about the company’s short-term outlook.

Rackable (RACK, news, chart, volatility) might be worth watching in 09. The last day of 2008 saw options activity jump to 31 times the average levels along with increasing open interest in the March and June 5 calls. Shares rose 12 cents to $3.94 and data suggests that most of the flow was non-customer buyers. Meanwhile, implied vols have lifted neary 40% despite rangebound trading in the stock for more than a month. For whatever reason, it looks like some players are positioning for a move higher and hoping to RACK up profits with calls at the $5 strike.

Noteworthy buyer of puts in Advanced Medical Optics (EYE, news, chart, volatility) this morning, as shares trade near flat at $6.62. , 20 minutes into the day a sweep router was used to buy 1039 Jan 5 puts for 15cents to open a new position and lift implied 25points from Wednesdays closing level.

Calls on Cooper Companies (COO, news, chart, volatility) are actively traded early Friday. Shares of the medical device company are up 55 cents to $16.95 and total options volume has picked up to double the average daily. 2,340 calls and zero puts have traded. Action is scattered in the Jan, Feb, and May calls.

ArvinMeritor (ARM, news, chart, volatility) saw bullish order flow Wednesday. Shares closed at just $2.85 and total options volume jumped to 11 times typical levels, with 3,900 calls and only 30 puts traded. Most of the activity was in the Jan and Feb 5 calls: trading on the offer in blocks of 850 contracts or less. The activity created new open interest in these deep out-of-the-money calls of about 3,600 contracts.

Talisman Energy (TLM, news, chart, volatility) calls at the 12.5 strike saw increasing activity Wednesday after 3,500 April 12.5s traded on the offer for 80 cents and two blocks of January 12.5s traded bidside for an average of 7.5 cents. All traded about 15 min. before the close. Open interest increased by about 3,500 in both contracts, which seems to suggest an opening calendar spread. With shares near $10, this spread generates its best profits if TLM trends towards $12.5, but not beyond, over the next two weeks and then rallies from there.

Falling crude oil prices and a report on manufacturing activity might guide some of the early action. Read More.