Bull Call Spread! The top two trades in Amazon.com (AMZN, news, chart, volatility) Thursday seem to reflect some optimism about the online broker. Just before 11:00 ET, 10,000 April 65 calls traded for $4.50 per contract while 10,000 April 80 calls traded for $1.34. Both traded on the AMEX, where an exchange-floor contract tells us an investor paid $3.16 for this spread. Since volume easily exceeds existing open interest, the trade looks like a new position.

Ciena (CIEN, news, chart, volatility) is seeing unusual trading. Shares are down 45 cents to $8.59 and put volume is outpacing call volume by a ratio of 5-to-1. 7,670 puts traded on the network equipment maker. Feb 5 puts are the most actives. 5,000 traded, including two blocks (1,538 and 1,166) at the offer for 15 cents at Noon ET. No news today. Earnings due out late Feb/early-March, probably after the Feb options ex.

Accused of undermining financial markets with doom-mongering

Dish Network (DISH, news, chart, volatility) is up $1.13 to $13.15 and 7,800 calls have traded on the company, compared to only 250 puts. Jan 12.5 and Feb 15 calls are seeing active trading, perhaps in reaction to the company’s new ’sling loaded’ TV recorder. The device can send signals to cell phones and computers.

Speculative call buying is being seen in Eastman Chemical (EMN, news, chart, volatility). Shares are up 48 cents to $32.64 and 3,200 Jan 35 calls have traded, all in orders of fewer than 110 contracts. Feb 40 calls are also seeing action, with another 1,100 traded.

Updated With Link. MF Global (MF, news, chart, volatility) January 5 calls, which are 51.5 percent out of the money with 8 days of life remaining, are seeing some action. Shares are up 41 cents to $3.30 after The Independent, a UK newspaper, reported vague speculation that ICAP might be considering a bid for MF Global. Market sources played down the talk.

Three Flaws You Should Know

A block of short-dated downside Puts on the Materials Sector ETF were bought this morning, illustrating one customer’s hedge against a dramatic move within the next 9 days. When the ETF was trading near 23.53, the buyer paid 10 cents for 8000 Jan 20 puts to open a new position, an outlay of $80,000 that would require a 15% move lower just to break even. With expiration next week, this buyer may be protecting an existing short-put position in a nearby strike, or possibly worried about Alcoa earnings, due Jan 12.

Elan (ELN) hit session highs of $9.13 and total options volume is running at 15 times the average daily levels on takeover chatter. Pfizer (PFE) is being mentioned and follows a FT report Monday that PFE might be looking for a large acquisition to improve its financial health. January 2010s are the most actives, with a strategist apparently buying the 10/17.5 call spread while selling 5 puts, 15,000X. It could be closing.

Oracle (ORCL, news, chart, volatility) is seeing bearish order flow. Shares are down 18 cents to $17.47 and recent trades include a multi-exchange sweep of 13,300 Jan 17.5 puts at the offer for 50 cents a contract. 19,000 ORCL puts have traded, compared to 51,60 calls and directional sentiment based on the total flow is 83 percent bearish.