Option volume in Massey Energy is running nearly 2x normal levels today, as shares trade 8% lower near 16.73. Premium buyers lead the flow, with a strangle buyer legging into the Aug 16 – 19 Strangle a moment ago for $2.80. Earnings expected July 28, and current near-term atm IV near 83% is up nearly 15points from last weeks close.

Aetna (AET) is up 37 cents to $24.42 and 25,000 Januuary 2010 calls at the $40 strike traded. Recent trades include 19.6K bought for 40 cents per contract. No news today. Implied volatility up to 56.5, from about 55.5 the day before.

Penn Nationa Gaming (PENN) are down 4.7% to $26.90 and option volume is running 3x daily average. Largest trade comes in the July $25 put which saw 1,200 contracts trade at the bid. Prior open interest was 3,350 so sufficient to cover. But worth noting that on Friday afternoon someone exercised about 1,500 of the July $35 puts, the early assignment reduced OI in the $35s to just 82 contracts. That exercise and today’s selling in the $25s might have been a way for someone to roll down a sell-write as the b/a ITM options tend to be wider than simply taking a haircut on intrinsic value.

Charles Schwab (SCHW) is up 22 cents to $17 and the July/Aug 18 call spread trades 10000X. Looks like buying-to-close July and selling-to-open August, perhaps part of a buy-write strategy as 400K Schwab shares also traded at 10:12. Implied volatility is moving up, to 41.5 from about 40 late Thursday. No news today. Earnings due out July 13, before the July expiration.

32,000 puts traded on Merck (MRK) already today. Shares are down 14 cents to $26.86 and the top trades of the day include nearly 10,000 Oct 24 – 26 put spreads bought for 75 cents, according to a floor contact. Looks like either a bearish spread or a roll up in strikes, from 24 to 26. Either way, looks bearish, as does the rest of today’s action in MRK. Implied volatility is moving beyond 36, from about 34 late last week. No news today. Earnings due out July 21.

Alkermes (ALKS), a Cambridge, MA biotechnology company, is down 35 cents to $10.11 and options volume is running 2X the usual, with 2,360 calls and zero puts traded. On the ISE, where more than three-quarters of the calls changed hands, sentiment data point to 74 percent opening customer buys. No news on the stock today. Implied volatility is near 60, up about 1.5 from late Thursday.

Fronteir Oil (FTO) is down 28 cents to $12.70 after crude oil fell $1.17 to $64.46 a barrel. In the options market, 5,400 puts traded, compared to 30 calls. One of the top trades is 1,100 Aug 10 puts on the ISE for 35 cents, an opening customer put buyer, according to sentiment data. 5,300 Aug 10 puts now traded, compared to open interest of 1,500. Implied volatility is up to 65, from about 62.5 late Thursday.

Polamar Technologies (PMTI) is seeing bullish order flow. Shares are down 11 cents to $13.88 and players are showing interest in July and August 15 calls, with a combined 2,600 traded and about 95 percent hitting ask-side. ISEE sentiment data also consistent with opening customer call buying. Implied vols moving up to 78, from about 75 late Thursday. No news on the Burlingon, MA medical equipment company…yet.

Spectrum Pharmaceuticals (SPPI) is down 84 cents to $5.66 and options volume is running 26X the expected for the first 45 minutes of trading.The increased volume is in reaction to news the company has received an FDA response letter related to Zevalin in the first-line consolidatoin setting for non-Hodgkin’s Lympoma patients. FDA requested more data. While shares took a hit on the news, Morgan Joseph analysts say the delay might be due limited resources at the agency. Sentiment in the options market seems mixed, with 4,800 calls and 4,800 puts traded. Implied volatility is down sharply, to 115 from about 171 late last week.

LDK Solar (LDK) is down 61 cents to $10.30 and puts are active after the company guided estimates higher for solar shipments (range of 200 to 220 MW), but guided second quarter revenues to $215 to $225 mln. Shares are down and it looks like sellers are dominating the flow in Aug 10 and 7.5 puts, with a combined 3,600 traded and about 90 percent hitting bid-side.