Alaska Communications options average a very thin 32 contracts per day, but have seen nearly 1500x that number today, with 48,000 calls on the tape as part of a strategy to capture the 21.5cent dividend on some of the 5550 outstanding October 7.5 calls. If the long-call holders fail to exercise their positions, a total of $120k could be ‘up for grabs’ to traders on the short side. Typically about 85% of the calls are exercised, in this case leaving about $18K in the pool– most of which will go to the traders putting up today’s blocks.

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

Symantec (SYMC) is up 32 cents to $15.61 and one player seems to expect increasing volatility in the software maker — bought the Jan10 15 straddle 2500X for $2.70. It was tied to stock at $15.54. Implied volatility in SYMC is 39 (+.3) , compared to a 52-week high and low of 105 and 35.

Wyeth (WYE) saw a block of 12,000 of the Oct $45 puts purchased at the 40c asking price. Potentially closing out a position ahead of the pending merger with Pfizer (PFE) which looks set to close by end of month.

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

Hologic (HOLX) puts were active into the close Thursday with most of the action coming on a 2,500 contract calendar put spread, with the trader shedding 2,500 December $15 puts for $0.80 and purchasing 2,500 March $15 puts for $1.45, a $0.65 debit. The strategy is bearish volatility, and neutral to bearish on price with HOLX shares at $16.15. Implied volatility is currently elevated at 53%,, well above historical volatility of 28%. The strategy intends for shares of the medical device maker to be between $13.40 and $17.10 through December expiration, and then with the best case scenario of shares being at 415 and the puts expiring worthless, the trader will own the March $15 puts at a $0.60 cost, and will be profitable, but could still hold with profits accumulating on shares moving below $14.40 through March expiration. This 2,500 contract spread was emulated 10 minutes later for another 450 contracts. Hologic has had multiple FDA approvals for its products in recent weeks, and shares are still cheap at 13X forward earnings. However, shares have been trending lower the last week and this trade obviously sees limited upside in shares.

Big Prints in Caterpillar (CAT). Shares are 20 cents to $51.65 and an investor bought Jan 60 calls for 60 cents, 20000X, while selling the Jan 55 – Nov 45 call spread at $4.50 (bot Jan, sold Nov) 15000X. This is possibly a roll of Nov 45s to the Jan 55s along with a new purchase of Jan 60s.

Visa (V) is down $2.07 to $71.46 and Mastercard (MA) is off $5.56 to $209.38 after Senator Dodd made coments about a reduction in fees charged to merchants for credit card transactions. Apparently, talk of changing the “interchange fees” has been heating up for weeks and that possibility is now weighing on V and MA. In Visa, options volume is running 3X the average daily. 34K puts and 16K calls traded, including a block of 6500 Oct 65 puts bot for 75 cents. Oct 67.5s are the most actives, with 9,551 traded and two thirds hitting ask-side.

PG&E (PCG) had a late day 3:16pm trade Thursday hit that is structured as a bullish risk reversal, with a trader unloading 3,000 January $40 puts at $1.50 and buying 3,000 January $45 calls at $0.55, a $0.95 credit. Shares are at $41.86 so this trade is very confident that the diversified utility company that yields a 4% dividend is heading higher, and valuation would suggest that is likely at 12X earnings. Despite market weakness today, shares closed 2% higher and had a rather nice breakout of an ascending triangle that would imply a move to $50 is underway. The size of the trade, and risk taken in this type of trade is a pretty conclusive signal especially when combines with the timing of this technical breakout.