Stocks move broadly higher on hopes for the economy. Read More.

Big Prints in the iShares Emerging Markets Fund (EEM) today. Shares are up 97 cents to $39.17 and the Oct 35 – 38 put spread was noted this morning (see 10:04 color). It traded 10000X. Afternoon trades seemed a bit more bullish, as it looks like one investor bought the Jan10 45 – 48 call spread 10000X for 40 cents around 12:25. About 25 minutes prior to that, the same spread traded 81000X for 37 cents, which also looks like a buyer.


In this call spread, the investor is buying calls at the 45 line and selling the same number of $48 calls. The premium from the short calls helps to pay for the long calls, and also helps to offset some of the negative impact of time decay. In the end, the strategist paid a net debit of 37 cents (56 – 19) and stands to make $2.63 if EEM rallies to $48 (22.6 percent) or more by the January expiration.

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

Some of the leveraged financial funds are seeing action Wednesday. Direxion Daily Financial 3X Shares (FAS) rallied $6.91 to $87.46 and 39K puts and 35K calls traded (2X avg daily). Sep 89 and 90 calls leading the flow. ProShares Ultra Financials (UYG) is up 35 cents to $6.14 and UYG options volume is running 2X the average daily, with buyers of Sep 5, Sep 6 and Oct 6 calls dominating the action. The Proshares Ultra Real Estate Fund (URE) is up 46 cents to $6.61 and options volume running 2X average daily. 24K calls and 6000 puts traded. URE Sep 7, Sep 6, Dec 7, Dec 8, and Oct 7 calls all actively traded.

VIX below 20? One player might think so — they just bought 20K VIX Feb 20 puts for 50 cents. Looks opening.

Apple Computer (AAPL) is seeing heavy trading after CNBC commentator Jim Cramer made upbeat comments about AAPL on the latest episode of Mad Money. Shares are up $7.26 to $182.42 and touched a new 52 week high. An impressive 331K contracts had traded by midday. In a sign that retail is dominating the activity, there have been no big prints in Apple. The top trades of the day the AAPL Oct 135 – 145 – 155 – 160 condor, 1000X on AMEX at 11:03 — probably a closing trade now that Apple shares are flying well above the body of the spread.

Nokia (NOK) is up 35 cents to $15.91 and it looks like at least one investor expects further gains before the weekend. Recent trades include a sweep of more than 10K Sep 16 calls, bought for 20 cents. Existing open interest is 957, suggesting opening buyer driving the order flow. Reuters reports this morning that NOK “is seeing large interest towards its new top-of-the-range model N900.” Next earnings due out Oct 15.

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

Anadarko Petroleum (APC) is up $4.70 to $63.87 and touched a new 52-week high Wednesday after the co. announced a deepwater discovery at its Venus exploration well. In the options market, trading is brisk, with 21K calls traded, or about 3X the number of puts. Trading is scattered across Sep, Oct, and Nov 60 calls and might include some profit taking, as APC call volume saw an unusual spike in activity on Sep 10, or less than one week ago.