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Boyd Gaming (BYD) is busy amid relative strength in the gaming stocks Tuesday (WYNN, LVS, MGM). BYD is up $1.26 to $11.20 and options volume is running 15X the average daily, with 7,765 calls and 1,800 puts traded so far. Oct 12.5 calls are the most actives. 4,580 traded, 68 percent hit ask-side, and open interest is 528. ISEE data (70 percent = 1752 calls on ISE) confirm that investors are buying to open calls in Boyd. Implied volatility (average) is up to 70, from about 68.5 late Monday.

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

The day after the Caterpillar (CAT) Jan10 30 – 40 (2X1) put ratio spread trades 25000X, the CAT Jan10 33 – 43 (2X1) put ratio spread trades 15000X for $1.04 on ISE. Like yesterday, looks like a buyer bracing for a fall in CAT between now and Jan. However, shares are up $3 to $51.77 and the second best gainer in the Dow today following a midday surge. Company is presenting at a JP Morgan Diversified Industries conference today.

Huntington Bancshares (HBAN) is up 18 cents to $4.27 and recent trades include a multi-exchange sweep of 5,173 Oct 4 calls at the offer for 60 cents. 12.3K traded. Looks like opening buyers (OI = 3,660).

A buyer just lifted nearly 5000 Tiffany October 37 puts in an opening trade suggesting a view that the 10% rally seen since earnings on 8/27 may be set to fade. As shares traded near $37.60 a buyer used a sweep router to pay $1.70 for 4997 Oct 37 puts, nearly $850,000 premium committed to a position that pays off if shares are below $35.30 by October expiry. Data shows the buyer was a firm or broker-dealer account.

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

19K calls traded on Eastman Kodak (EK) in the first two hours, which represents 14X the expected volume and more than 15X the number of puts. The activity includes the purchase of 7,700 Sep 7 calls for 15 cents. 9,540 now traded, compared to open interest of 5,712. Sep 5 and 6 calls are active as well. No headlines on EK today. Implied volatility (average) is 102 and elevated, but not much changed since yesterday.