Anadarko PetE (APC) is down $3.45 to $31.50, as oil and gas sector gets hit along with crude. Crude oil slipped $4.51 to $40.25 on fears of dwindling demand. APC Mar 30 puts are actively traded. The top trade is 2530 contracts at the offer for $1.10 on the CBOE. ISEE Sentiment data suggests that 77 pecent of the puts traded on the ISE (1800 contracts) are opening customer buys. Looks like some investors are scrambling to buy puts in anticipation of further weakness in APC.

Active trading in the financial ETF this morning, with shares down more than 5% to 7.18. Relatively bearish flow in March 7 puts leads the volume, with 25000 trading in the first 90minutes, 56% on the offer and IV up 6 points to 92%. A contrarian view may be seen in the upside June 10 calls, with two blocks of 12,500 trading for 45cents on the Amex (which moved today to the NYSE floor).

iShares Dow Jones Transport Fund (IYT), an ETF that tracks the Dow Jones Transports, is down $2.07 to $42.74 and 16,000 puts traded, compared to 120 call options. Most the action is in the March 50/45 and June 40/35 put spreads. It appears to be a roll of a position in the Mar spreads opened on Jan 30 for $2.75 (tied) to lower strikes in June.

Talisman Energy (TLM) is down 76 cents to $8.60. Looks Like March and April puts at the 7.5 strike being bought ahead of earnings, March 5 (before market).

DirectTV (DTV) is down 25 cents to $19.69, perhaps in sympathy with Dish Networks (DISH), which is getting dissed on disappointing earnings. DTV Mar 20 and 22.5 calls saw increases in open interest following a day of active trading Friday. Some of those positions are perhaps being closed. Recent trades include a sweep of 3,651 DTV Mar 22.5 puts on the bid for 25 cents. The activity comes ahead of a presentation at the Deutsche Bank Securities Media and Telecom Conference Tuesday.

KLA Tencor (KLAC) is down 21 cents to $17.04 and April/Mar 17.5 call spread trades 2500X. Looks like buyer pays 75 cents, possibly a roll of long calls from Mar to April.

Suncor shares are seeing the first down day in a week, off nearly 8%, near 19.14, and option flow is well above normal, with put buyers leading the action. June 17.5 Puts are the most active, with 3500 trading, most for $2.50, and IV lifting 3 points to 82.3%. June 15 puts also seeing ask-side volume, with 1530 on the tape trading at 1.50.

Cliffs Natural Resources (CLF) is down $1.85 to $13.58 and has fallen nearly 30 percent since reporting earnings on the 26th. In the options market, sentiment seems somewhat bullish, as 2,200 Mar 17.5 calls have traded. With open interest of 663 and 91 percent of today’s 2,200 contracts hitting ask-side, looks like opening call buyers hoping for a substantial bounce in the near future.

Interesting activity in two of the biotech ETFs. The iShares Biotech Fund (IBB) is down $1.11 to $61.96 and 5000 Mar 70 calls traded. The Biotech HOLDRS (BBH) fell $2.76 to $160.90 and 7,000 March 180 calls traded. Most of the volume is hitting at the offer and might be closing of short OTM calls as today’s volume doesn’t exceed existing open interest.

Call buying in WYNN Resorts this morning, as shares trade near $19.71 after touching a new 52w low low of 19.25. Action started with a block of 2500 March 25s bought for 35cents on the PHLX, followed by 1000 March 22.5 calls for 85cents. May be closing short positions.