Stocks fell amid ongoing uncertainty about the economy and problems in the banking world. Read More.

$7.5 Billion in Investment and Derivatives Losses

Buffet: The Economy is in Shambles

Farm and construction machinery equipment maker Terex (TEX) is up $1.11 to $9 late Friday and options order flow seems bullish. 7000 calls have traded, compared to 1,250 puts. 3900 April 12.5 calls have traded and the actoin appears to be driven by call buyers, as roughly two-thirds has traded ask-side. Recent trades also include April 10/12.5 ratio call spread, bought 500X for 30 cents. The company announced today that it will be presenting at the ISI Industrial Conference at The Waldorf Astoria Hotel in New York, March 3. Morgan Stanley resumed coverage ont the stock with an overweight rating.

The Dow Jones Transport ETF (IYT), an exchange-traded fund that tracks the price action of the Dow Jones Transportation Average, hit a 52-week low of $44.08 after the Dow Jones Transports slid to their worst levels since July 2003 Friday morning. The ETF has since rebounded and is unchanged at $45.34. One options strategist appears to be looking for additional upside over the next few weeks and bought two blocks of 2500 (5000 total) March 50 calls for 50 and 55 cents in morning trading.

OptionsXpress (OXPS) sits near $10 per share and 2.7 percent off the lows of the day after Briefing ran an Insider Watch report that noted Chairman John Gray has been a buyer of shares since late Jan at prices ranging from $10.53 to $11.18, bringing his stake to 10.7 mln shares, or 18 percent of outstanding. The note also rehashed takeover talk, saying that there is a possibility OptionsXrpess could be involved in a merger since it has large cash balance representing $3.4 per share and no debt.

Mosaic (MOS) Mar 45 calls are active, as ag stocks show relative strength Friday. MOS up $3.12 to 442.78 and running to session highs. 6,600 Mar 45 calls traded. POT, MON, AG, BG, and CF also showing relative strength.

General Electric (GE) Mar 7.5 puts are moving up the list of most actives. 47.4K now traded. Recent trades include sweeps of 1684 and 3673 contracts at the offer for 57 and 56 cents. Shares down 53 cents to $8.57. Implied volatility up to 105, from about 94 the day before.

Lazard (LAZ) is down 72 cents to $25.22 and options volume is running at 34X the typical pace after 12.9K Sep 30 calls traded on the bid for $3. Looks like a possible buy-write on the financial advisory and asset management firm, as a block of 624K LAZ shares recently traded for $25.35.

MGM Mirage (MGM) is down 47 cents to $3.98 after disclosing in an 8-K filing that it has tapped $842 mln from a $4.5 bln credit pact. In the options market, 8,300 calls and 925 puts traded, including a lot of 6000 March 5 calls recently traded at the offer for 30 cents. Directional sentiment based on today’s total order flow in MGM is 69 percent bullish despite the negative reaction in the share price.

Medicis (MRX) is seeing action Friday after an investor bought the April 10/7.5 put spread 15000X, short the April 15 calls 15000X and paid .225 for the package. The positis is tied to 650K shares at $11.51.