Follow-up to yesterday’s MYL story: From AP, “Mylan said FDA investigators found that claims in a lengthy investigative piece by the Pittsburgh Post-Gazette were unfounded. The agency, though, said that was not the case &. “The investigation is ongoing and the agency has formed no conclusions at this time. Statements to the contrary are untrue,” said Steven Solomon, the agency’s assistant commissioner for compliance policy. He said the investigation involves “allegations of compliance violations that the FDA takes very seriously.” Link to article.

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

Hewlett-Packard (HPQ) saw sweep of sale of 10k of the November $37.50 calls at the $5.60 bid. Prior open interest of 24,250 is sufficient to cover and this may be partial liquidation of a trade that was made just last week when 15,000 contracts were added to the OI. The stock has moved up some 25% over the past two months but seems to be into resistance at $42 level. The company does not report earnings until August 18 and IV levels are new 52 week lows of 32%.

Cigna (CI) is heading higher and calls are active amid relative strength in the health insurance names Tuesday. The sector is stronger after AP reported that a bipartisan group in the Senate held secretive talks and is working on a health care compromise that omits a public insurance option that the Obama adminstration favors. This might be viewed as a positive for CI, AET, CVH and private health plan providers. CI is up $2 to $28.44 and 17K options traded. Call volume accounts for 90%. Implied vols edging down to 47.5, from about 50.5. Earnings due out Thursday (before market).

First Solar (FSLR) is down $3.65 to $167.85 and the Aug 125 – 150 put spread was bought this morning for $4.40, 5000X. No news on FSLR today. Implied vols edging up to 72. Earnings due out Thursday, after market.

Stocks are set to open lower, as investors digest the latest round of earnings news and wait for a report on consumer confidence. Thirty minutes before the opening bell on Wall Street, stock index futures indicate that the Dow Jones Industrial Average might lose 40 or 50 points at the open.

Dow component IBM is trading down 1 percent after announcing plans to buy SPSS for $1.2 billion, or $50 per share. SPSS rallied more than 40 percent.

Meanwhile, the earnings news is mixed. Oil giant BP is down 1.8 percent after reporting quarterly earnings of $1.01 per share on $54.8 billion in revenues. Analysts were looking for 92 cents on $64 billion.

Valero (VLO) slid after reporting a 48-cent per share loss for the most recent quarter. Amgen (AMGN) gained on better-than-expected profit results and after announcing a partnership with GlaxoSmithKline to market a bone drug.

Commodity-related stocks might see relatively weakness after crude oil slid 43 cents to $67.95 a barrel. Gold fell $5 to $951.30 an ounce.

In economic news, the latest S&P/Case Shiller Home Price Index fell -17.06 percent in May, which was better than the -18.12 percent the month before and also ahead of economist estimates (-17.9 percent).

A report on consumer confidence is due out at 10:00 a.m. eastern time. Economists expect the index to edge down to 49 in July, down from 49.3 in June.

Bonds are seeing modest gains ahead of the news. The benchmark ten-year Treasury is up 6/32nd and yields 3.69 percent.

The dollar gained .61 to 94.57 on the yen. The euro slipped .0014 to 1.4228 on the buck.

Stocks trade in narrow range, finished modestly higher. Read More.

29K calls traded on Sequenom (SQNM) Monday, compared to 6,200 puts. Shares are up 77 cents to $6.35 and August 4, 5, 6, and 7 calls are seeing active trading. Seems like a mix of buying and selling, perhaps some rolling up in strike prices. Implied volatility is up to 134 (+3) ahead of earnings (expected around July 29, but date not yet posted).