Rebound continues with help from GM and better-than-expected retail sales numbers. Read More.

Bullish traders resurfaced in AU Optronics (AU). Shares are up 19 cents to $7.54 and 4,300 calls have traded today, about 4X the normal levels. March 7.5 calls, which expire next week, are the most actives. 4000 contracts traded and almost all hit ask-side. ISE sentiment data confirms buyers are opening new positions in the contract.

Pfizer (PFE) and Merck (MRK) are giving the Dow a boost and options are actively traded in both pharmaceutical companies late Thursday. Pfizer (PFE) is up 9.5 percent after the co. announced that trials of its Sutent were stopped early after the treatment showed significant benefit in pancreatic islet cell tumor patients. PFE options volume is running at 2X the typical levels, with 114K contracts traded and 78 percent hitting on the call side of the options chain. MRK is up 8.4 percent and volume is running at 2X the normal, with 32K contracts traded and call volume representing 74 percent of the activity.

SPDR Gold Trust ETF is trading near 90.86, up 1.8%, and option flow is relatively bullish, with 138,000 calls and 81,000 puts on the tape with about an hour to go. Buyers appear focused on the 100 strike calls in April and May, in a view that the ETF may break through the $100.44 52w high a year ago. Near noon today a buyer paid 1.30 for 20,000 April 100s, and serveral minutes ago a buyer paid 2.55 for 10,000 May 100s. Both trades will open new positions.

Data Domain (DDUP) puts are active as the stock displays relative weakness Thursday. Shares are down 32 cents to $12.98 and 9,171 puts traded, 11X (1100 percent) the normal levels. April 12.5 puts are the most actives. 5,800 traded and 68 percent traded ask-side. Similarly, ISE Sentiment is consistent with 60 percent opening customer put buys. Implied volatility is up to 68.4 from about 65.7 yesterday.

iShares Biotech Fund (IBB) came under pressure yesterday on concerns over legislation that could potentially hurt companies in the sector. IBB fell 3.4 percent in midday action. Today, however, biotech stocks are seeing relative strength after Roche finalized its bid for Genentech (DNA) and Gilead (GILD) said it was buying CV Therapeutics (CVTX) . The exchange-traded fund made up all Wednesday’s losses and more. IBB is up $3.10, or 5.2 percent, to $63.33 and trading is brisk in IBB April and June calls at the $70 strike.

US Oil Fund (USO) is up $1.87 to $28.17 after crude oil rallies to new highs. Crude is up $4.25 to $46.58. In the options, 45,000 USO calls and 38,000 puts traded so far.

Household net worth falls by records in fourth quarter. Read More.

Bullish Vertical Spread. Fluor (FLR), an Irving, TX-based heavy construction equipment company, is up $1.29 to $38.41 and one strategist appears to be positioning for a substantial move higher in the share price between now and the July options expiration (99 days). About 45 minutes ago, 5000 FLR July 45 calls traded at the offer for $3.40 while 5000 FLR July 55 calls traded on the bid for $1.20. Both traded on the PHLX and appear to be part of an opening bullish spread (vs. $37.90), where the strategist paid $2.20 to create new positions in both contracts. If so, they have a bullish view on the stock and stand to make $7.0 if FLR rallies to $55 or more at the expiration. The breaken is $47.20 with the debit at risk if the stock fails to move above $45.

Applied Materials (AMAT) is up 37 cents to $9.97 and 26.4K Mar 10 calls traded, compared to open interest of 15K. Today’s trades include a multi-exchange sweep of 25.7K at the offer for 35 cents.