Rackable (RACK, news, chart, volatility) is seeing bullish order flow the day after analysts noted the stock is currently trading below cash. Canaccord Adamson says the stock is trading for $4.49 per share and co. has cash and investments worth $6.25. Some players in the options market are now looking to rack up quick profits with June 5 calls. More than 2,100 have traded, 73 percent offerside. March 7.5, Feb 5, and Feb 7.5 calls also being bought.

Wells Fargo (WFC, news, chart, volatility) puts are actively traded for a third day. Shares are down 23 cents to $25.64 and today’s trades include a substantial time spread in the Jan/Feb 25 puts traded 32000x on the AMEX, possibly a roll ahead of next week’s expiration.

Alliance Data (ADS, news, chart, volatility) is down $1.77 to $45.66 and options volume is running four times the average daily levels, with 6,440 puts and 44 calls traded. Today’s trades includes 1,490 Feb 40 puts at $2.25 and 3,754 Feb 35 puts at $1.25, both traded shortly after 10:00 ET.

Expedia (EXPE) Jan 10 calls are seeing increasing buying interest. Shares are up 23 cents to $9.20 on talk Chairman Barry Diller will take the company private.

Bullish call buying taking place in Expedia this morning, with shares up a dune near 9.07. Buyers have been paying 20 to 30cents for Jan 10 calls, with nearly 3000 trading in the first 45minutes of the day.

President-elect warns of lingering recession, double digit unemployment

Trading activity in OptionsXpress (OXPS, news, chart, volatility) is picking up on news Ameritrade (AMTD) is acquiring ThinkorSwim (SWIM). When asked why SWIM and not OXPS, Ameritrade said ThinkorSwim has blown by Optionsxpress in options trading over the past year. However, this deal doesn’t preclude them from doing another deal. OXPS hit a high of $14.05 early and is up 13 cents to $13.45. Jan 15 puts are the most actives.

Novellus (NVLS, news, chart, volatility) Feb 15 calls saw an increase in open interest of 4,266 following a day of active call buying Wednesday. Today, shares of the chip equipment company are up 8 cents to $13.32. Options volume is running at three times the average daily after 8,000 March 12.5 calls traded at the offer for $1.95.

Family Dollar (FDO, news, chart, volatility) gained 14.4 percent on the heels of its earnings release Wednesday, but trading in the options market seemed to reflect skepticism about the sustainability of the rally. Feb 27.5 and 25 puts were the most actives after a player bought a 1 x 2 ratio spread 2500x for 10 cents. Today’s open interest data suggests a new position. That is, the strategist bought 2,500 28.5s and sold 5,000 25s to create a bearish spread that yields its max gain if FDO falls back to $25 at expiration. Since there are more short puts than long puts, it requires additional margin and exposes the strategist to substantial risk if the stock really tanks before the February options expiration.

Dismal