After rallying 11.8 percent on news the FDA approved United Therapeutics’ (UTHR) lung drug Thursday, UTHR is down $3.10 to $92.49 on disappointing earnings news today. The co. reported a 9 cent per share loss. Analysts were looking for a 55-cent profit. In the options market, trading remains active, with 9,480 calls and 2,450 puts traded so far. The top trade is 1,609 Nov 105 calls on the ISE for $3.40, which is an opening customer buyer. More than 2000 now traded. Looks like buyers of Aug 110 calls as well. Implied volatility is little changed, at 35 percent (not far from a 52-week low of 33.65 and below 30-day actual volatility of 41.3 percent.)

Tyson (TSN) sits unchanged at $11.20 and 13K calls traded in the first 40 minutes, compared to 290 puts. Total volume represents about 12X the average daily. Recent trades include a mult-exchange sweep of 1700 August 12.5 calls at the offer for 35 cents. More than 10K now traded. September 12.5 calls are seeing some action as well. Implied vols are moving as well, up to 57, from about 52.5 late Thursday. The bullish trading comes ahead of the company’s earnings report, Monday, before the bell.

Stocks are trading mixed early Friday after a report on economic growth showed another decline in the second quarter. Shortly after the opening bell on Wall Street, both the Dow Jones Industrial Average and the NASDAQ were little changed.

Second quarter Gross Domestic Product fell at an annual rate of 1 percent, according to data from the Commerce Department Friday morning. The number was slightly better than economist estimates of 1.5 percent.

Stock index futures fell on the news, however, perhaps because first quarter GDP was revised down to show a -6.4 decline, down from an initial reading of 5.5 percent.

Bond prices rose, however, the benchmark ten-year Treasury is up 13/32nd and yields 3.56 percent.

Meanwhile, crude oil is little changed at $67 a barrel. Gold gained $3 to $940.30 an ounce.

The Chicago Purchasing Manager’s Index [PMI] for July is due out at 9:45 eastern time. Economists expect the gauge of regional manufacturing activity to increase to 43, up from 39.9 the month before.

Among the stocks to watch, Dow component Chevron Texaco (CVX) opened lower after the company reported quarterly earnings of 87 cents per share, which was 8 cents below analyst estimates. Synaptics (SYNA), Evergreen Solar (ESLR) and Disney (DIS) are also lower on earnings news. Meanwhile, ITT Industries (ITT), Dryships (DRYS), and Novetel (NVTL) are seeing post-earnings gains.

Finally, end of month window dressing might also be a factor. The Dow Jones Industrial Average is up 8.4 percent heading into the final day of trading in July.

Stocks rally around GE upgrade, earnings news. Read More.

Emerson Electric (EMR) gapped higher and is up $1.42 to $37.45 after the co. announced a global sales alliance with Sun Micro (JAVA) to provide businesses with technologies to increase productivity and energy efficiency at datacenters (link to story). In the options market, EMR volume is running 4X the usual, with 9,400 calls and 5,200 puts traded. Aug 36 calls are the most actives, with 3,900 traded and 80 percent trading ask-side. A floor contact confirms that buyers are driving the action, snapping up 3000 for $2.00 a contract. Looks like buyers of Aug 37 calls, Aug 40 puts and Sep 41 puts as well. Implied vols at 36 (+1)

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Interest in Moody’s (MCO) puts continues. Open interest increased from 79.1K on July 20 to 152.4K today, or 92.7 percent (chart). Open interest in Moody’s puts increased by 19K contracts in the most recent session, compared to a decline of 166 in MCO calls. Shares fell yesterday and are are down $1 to $24.52 today after the company reported (wednesday a.m.) better than expected earnings and revenues, but issued downside guidance for the fiscal year. Another 13K puts traded today, compared to 1,450 calls. While some of the trades are likely closing, ISEE data indicate 45 percent opening customer buyers. Implied volatility is up as well, to 53, from about 51 the day before.

Ivanhoe (IVN) is up 20 cents to $7.53 and it looks like an investor bought the Dec 7.5 – 10 call (1X2) ratio spread 2500X and collected a nickel on the PHLX–possibly a close or a roll.

Update (7/31: 10:20): Open interest data indicate new positions in both contracts. Therefore, this looks like a bullish 1X2 ratio spread, where the strategist bought 7.5 calls and sold 2X as many 10 calls. Most brokers require extra margin on this type of spread because the investor has 2X more short calls compared to long calls and is therefore “naked” on some of those Dec 10s. One way to create a similar risk-reward, without the extra margin, is to also buy the Dec 12.5 calls and create a butterfly instead of a ratio spread.