Forest Oil (FST, news, chart, volatility) options activity is running seven times the average daily levels. Shares are trading up $1.43 to $21.39 amid renewed investor interest in small cap natural gas stocks (MWE, PXD, LINE, APC). Sentiment in the options market is mixed, with active buying/selling seen in Jan and Feb 20 calls. More than 7,200 contracts have traded and implied volatility is up a few points to 89.

Kimco Realty (KIM, news, chart, volatility) is up 64 cents to $19.44 and options volume is running at 7 times the average daily levels. Most of the action is in the February 20 and 17.5 puts, with 100 percent of today’s 3,800 contracts traded offerside.

Vulcan Materials (VMC, news, chart, volatility) put volume is running at 8 times (823 percent) the typical levels, with increasing activity seen in the February 65/60 put spread. VMC is down 56 cents to $69.39 and the top two trades of the day include 1,500 Feb 65s at the offer for $5.00 and 1,500 Feb 50s mid-market for $1.25. Both traded on the PHLX just before 11:00 and appear to be opening bear put spread, as volume easily exceeds existing open interest.

Mass Exodus Ahead?

Motorola (MOT, news, chart, volatility) February 5 calls are seeing a surge of buying interest this morning. Shares are up 15 cents to $4.63 and 23,300 have already traded, or about 7 times the existing open interest. Looks like heavy speculative call buying. No news…yet.

IntercontinentalContinental Exchange (ICE, news, chart, volatility) options volume is running twice the average daily levels. Shares are down $10.12 to $62.88 and making a run to session lows following multiple broker downgrades. Goldman, UBS, and AmTech all downgraded ICE to Neutral. Jeffries cut estimates. The change in sentiment appears to be based on recently released December trading numbers. 6,800 ICE calls have traded, amid heavy selling of premium Tuesday.

Seeing what is likely a closing buyer of Jan 45 calls in QSII today, as a downgrade has shares nearly 4%lower to 40.05. Last week the Jan 45-50 call spread was sold for $1 in hundreds of tiny tranches for $1, when shares were near 43.60. This morning we see 1700 45s trading for 50cents, as the call spread sellers lock in their gain. QSII is presenting at a healthcare conference today.

Research in Motion (RIMM, news, chart, volatility) is up $2.24 to $45.54 and February 50 calls are the most actives, with 6,575 traded and 96 percent trading offerside. Existing open interest is 1,642, suggesting some possible short-term call buying by momentum players.

Corning (GLW, news, chart, volatility) puts are active for a second time in three days. Friday, nearly 4,000 Feb 10 puts traded. Today, with shares up 64 cents to $11.22, the Jan 10 puts are active. Recent trades include a multi-exchange sweep of 7,879 contracts at the offer for a dime. It could be closing, as existing open interest is more than 12K.

Chesapeake (CHK, news, chart, volatility) is up another $1.30 to $19.43 and Jan 15 and 17.5 calls are busy early. Yesterday, call volume jumped to 42,000 contracts on renewed takeover chatter, with Exxon Mobile (XOM) mentioned as a possible suitor. Some players are possibly banking profits in the in-the-money calls on the heels of today’s rally.