Options flow in GS ahead of earnings is nearly triple normal volume and dominated by calls, with 117,000 on the tape vs 71,000 puts. Typical put/call in GS has been closer to 1.09 over the past month, suggesting much of today’s activity is short-term earnings speculation. Shares are up 5% near 149.27, and most actives include nearly 30,000 July 150 calls and 20,000 July 155 callss trading as implied vols lift to the 60% range, putting the implied gap-move based on the iv difference from July to Aug at approximately $5. Flow is primarily smaller size trades, with nothing over 1000 contracts.

Panera Bread (PNRA) shares are up 75c or 1.5% to $51.10 and option volume is 3x the daily average. The name popped up at midday as sporadic call buying in the July $50c surpassed the strike’s open interest. Some 1,200 contracts have now traded against prior OI of 657 contracts. Implied vol has ticked up 5.5% to 39% on the day.

Pepsico (PEP) is up 78 cents to $55.49 and 17,000 calls traded, or about 7X the expected for midday trading. The increased volume in Pepsico comes just a few days after Barron’s Online featured the stock, saying PEP is trading at historically low valuations and offers a 3.2 percent dividend yeild. Not all of the flow is bullish today, however. In fact, 65 percent of today’s calls have traded on the ISE where sentiment data indicate that only 13 percent are opening customer call buys. The top two trades: 2500 Aug 55 – 57.5 call spreads (looks like bought 2500 55s and sold 5000 57.5s).

McAfee (MFE) shares are up fractionally, 10c to $40.80, but there is big call buying. The August $45 calls have traded 6,458 contracts against prior OI of 1,134. The bulk of volume came in two blocks of 2,300 and 1,600 both at the ask from 75c to 65c. Implied vol. has been pushed up from 38% to $39.3% on the day.

Eastman Kodak (EK) is unchanged at $2.84 and 3,400 calls traded, compared to only 6 put options. Buyers are active in Aug 3, Aug 4, Oct 4, and Oct 5 calls. No news on the stock today, but the action seems to reflect expectations for a move higher in EK shares in the weeks and months ahead. Implied vols are elevated, at 118, compared to 109 late Friday.

CIT implied volatility is off the charts. Shares fell 21 percent to $1.21 after the Wall Street Journal reported the company hired advisors about a possible bankruptcy since it has been able to secure government funds. The stock is down to a new 52-week low and implied volatility rallied from about 245 late Friday to 324 and to new record highs.