Morgan Stanley (MS) is up 32 cents to $24.5 and Mar 24 puts are active. 14.9K traded, compared to open interest of 3,304. It appears that some investors are buying premium (the day’s trades include 3000 March 24/22 put spreads bought for 70 cents). The activity seems to reflect some underlying concerns about the outlook for MS shares ahead of next week’s expiration. Some sources have Mar 19 as an earnings release date. However, the exact date is not yet provided by their investor relations department or on their web site.

EMC (EMC) April 10 puts are active. 10.4K calls traded, compared to open interest of 16.1K. Today’s trades includes a block of 6000K for 37 cents on the ISE, where data indicate an opening customer purchase.

Humana short-term upside calls are very active on takeover chatter as shares spiked more than $3 to 26.75 about an hour into the day. From 10:22 to 10:40 more than 12,000 March 30 calls traded from a dime to 85cents in relatively small speculative lots. Last May chatter that Aetna may have interest sparked call buyers and boosted shares from $45 to $50.

Sandisk (SNDK) is up 60 cents to $10.55 and March 11 and 12 calls are actively traded. Looks like buyers dominating the order flow after EE Times reported that Toshiba is looking to make a bid for SNDK.

Compass Minerals (CMP) is down $8.63 to $53 and not far from session lows on news German fertilizer company H+S has scrapped plans to acquire the company. The recent rally in the share price is one reason the decision was postponed, according to Financial Times Deutschland. In the options market, CMP volume is running at 2X the average daily levels, but sentiment is mixed. Mar 50 puts are the most actives, with 3,700 traded on a mix of buying and selling. 6,500 calls have traded and, of those that traded on the ISE (48 percent of total), sentiment data suggest that nearly half is opening customer buys.

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AMAG Pharmaceuticals (AMAT) is up $1.39 and March/April 25 put spread trades 1600X (top trade is 600 contracts). Looks like buyers paying $2.05. Possibly closing.

Options on Bank of America lead the single stock flow this morning, running about 5x normal pace as shares trade up 6.6% near 6.24. Calls lead the flow, with 115,000 contracts on the tape, including a bullish customer buy of the April 6-8-10 call butterfly 2500x on the ISE for 40cents. Also seeing activity in May 7.5 puts, with buyers paying $2.44-2.50 for a total of 10,000 contracts.

Citi (C) Mar 2.5 calls are the most actives early Friday. 17.8K contracts traded and about two-thirds trading ask-side. Looks like some buyers might be taking positions as the stock moves up 13 cents to $1.80, perhaps on hopes the stock will move beyond $2.50 (38.9 percent) before the contracts come off the board a week from today.

Newell Rubbermaid (NWL) calls are seeing action early. Shares are up 13 cents to $5.34 and the focus is on the June 5 calls, with 4000 traded, compared to oen interest of 1,407. Looks like buyers paying $1.05 to open new positions.