Data Domain (DDUP, news, chart, volatility) is suffering a 25 percent post-earnings slide. The stock was also whacked with its second Sell rating this week. Amtech initiated with Sell on the 26th and Calyon cut it to Sell today. Investors are indeed selling and trading in the options market is brisk, with more than 30K already traded. The top two trades: 2500 Feb 15 puts bid-side for $1.70 and 2500 March 15 puts ask-side for $2.25, which is possibly a roll of bearish puts from February to March.

A massive 6 leg spread put spread traded in Spider options on the ISE this morning for a total of 100,000 contracts less than 5 minutes into the trading day. Data shows the package involved three vertical put spreads. Customer appears to have sold 25,000 Feb 89-90 put spreads for 73cents, possibly to close a position, and bought 12,500 March 76-85 put spreads for $2.88, and 12,500 April 76-82 put spreads for 1.83. If so, the customer appears to be rolling a bearish view down and out, committing over $4million in premium to do so.

Newmont Mining (P/C Chart, news, chart, volatility) is up 15 cents to $39.59 and January 2010 45/65 call spread is seeing some interest, with 5000 traded as part of a split-ticket for $4.75. Gold now up $15 to $921.50.

Genentech (DNA, news, chart, volatility) is active, as investors react to Roche’s new cash tender offer at $86.50. Shares are down $2.80 to $81.29 and Feb 80 and March 75 puts are the most actives. Looks like sellers dominating the action, perhaps on the view the new offier puts a floor under the stock price.

2500 lots of M&T Bank (P/C Chart, news, chart, volatility) April 50, 40 and 35 puts traded early. 50s sold, while 40s and 35s bought, according to a floor contact. It could be roll down from 50 to the lower strikes. MTB is up 70 cents to $40.68.

Barrick Gold (P/C Chart, news, chart, volatility) is up 28 cents to $38.85 after gold gained another $19.5 to $926 an ounce. Barrick Gold (ABX) shares gained 28 cents to $38.85 and large blocks of ABX March 40 and 50 calls traded early in the day. 5000 March 40s traded for $3.50 per contract while two blocks (2,500 ea.) March 50 calls traded for 75 and 80 cents per contract. With 5000 traded in both out-of-the-money calls, the activity looked like a substantial bull call spread.

Sources on the PHLX, where the trades took place, confirm to WhatsTrading.com that the activity was part of a bull call spread, where the strategist paid $2.725. It was tied to a position in ABX shares at $38.90 per share. The best payoff from the spread is $7.275 and happens if ABX rallies to $50 or more by the March options expiration.

Consol Energy (P/C Chart, news, chart, volatility) March 30/35 call spread seeing action early. Shares up 8 cents to $28.71 and looks like a buyer, with the 30s hitting ask-side and the 35s near the bid. If so, they paid $1.80. It could also be closing, as volume doesn’t exceed open interest. If this is a stock you follow, you might want to check the open interest Monday morning. If you want a follow-up, post a comment and let me know. I will take a look Monday.

PowerShares QQQ (QQQQ) Feb 29 puts are the most actives in the first 15 min Friday. Shares are up 24 cents to $29.82 and 33,600 traded. Looks like buyers dominating the flow, with large blocks hitting ask-side early.

iShares Dow Jones Transport Fund (IYT), an ETF that tracks the Dow Jones Transports, fell $1.65 to $54.48 Thursday and total options volume jumped to 18 times the usual. Most of the volume was due to a March 55/45 put spread, bought 4000X for $2.75 and tied to shares at $55 on 32.5 delta. Open interest data confirms it’s a new postion.

Lincoln National (LNC, news, chart, volatility) Feb 17.5 and 22.5 calls saw increasing open interest after a spread traded on the PHLX Thursday morning. At 10:16 ET, 1600 17.5s traded ask-side for $2.25 while 1600 22.5s traded bid-side for 45 cents. Looks like a new position and comes ahead of earnings on Feb. 10.