iShares Japan Fund (EWJ) is down 19 cents to $9.91 and a lot of the options volume surfaced early when one investor sold the Jan10 $8 straddle for an average of $2.075, 27500X. It was tied to a block of shares at $9.95, probably a block of 2.16 million that traded at 11:06. This likely closes out a position opened in late April when the same straddle traded 20000X on the 27th and 28th, also tied to shares.

Two similar spreads in Las Vegas Sands (LVS) and MGM in recent trade. LVS is down 2 cents to $17.72 and a strategist sold the Oct – Nov $20 put spread for 85 cents, 5000X, which appears to be a roll out of the Oct 20s. MGM is down 18 cents to $12.52 and the Oct – Nov 15 put spread is sold for 45 cents, 10000X, which also appears to be a roll. So, in both cases, it appears that the strategist is left holding short ITM puts, possibly betting that LVS will move beyond $20 and MGM above $15 by the Nov expiration.

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

Moody’s (MCO) is up $2.27 to $21.05 and attempting recover after an 8-day 27.6 percent swoon. Options trading remains brisk, with another 27K puts and 21K calls changed hands today. Some players are likely selling puts to close positions as the stock bounces. Looks like calls are being sold. For example, 4,291 Oct 19 calls traded and 79% hitting bid-side. Implied vols (average) easing back to 76, from about 79.1; but still higher than the readings below 50 in mid-September before the WSJ ran a story saying an ex-Moody’s analyst claimed that the credit rating agency is still using inflated ratings.

TCF Financial (TCB) shares are off 4% to $13.30 and big 10,000 contract purchase of the Nov. $12.50 puts at the 95c ask. Prior open interest was just 50 contracts so this should translate into new position (and is probably a roll out of the October 12.5 puts, which also traded 10000X.) Yesterday TCF was received a downgrade after it announced the purchase of a Financial National Capital, a unit of Fidelity National (FNF), for $50 million and assumption of assumption of debt.

Nokia (NOK) is down 40 cents to $14.84 after the threat of Vodaphone’s announced iPhone in Europe raised concerns about competitive pressures for Nokia. Recent options trades include a sweep of 10K Oct 15 calls at the offer for 65 cents. 13.65K now traded, with 86 percent hitting ask-side. Meanwhile, puts are active as well. Shortly after the calls were swept, two sweeps (of 7,453 contacts traded and 3,420) Oct 15 puts traded ask-side for 85 and 90 cents. 18K puts and 18K calls now traded on Nokia, or about 4X the expected for midday.

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

Follow up on Ivanhoe (IVN). Shares are now unchanged at $12.51 and it appears that 2500 March 10 puts were canceled, which leaves 5000 Mar10 10 put – 17.5 call risk reversal. It appear that the calls were bought and puts sold on PHLX, to collect 10 cents. No blocks of IVN shares traded yet.

Call buyers resurfaced in Houston-based electric utility Dynegy Tuesday. DYN saw active trading amid deal chatter Thursday and Friday last week. Today, shares saw a spike on heavy volume to $2.63 and are up 7 cents to $2.47. Total options volume is running 6X the average daily. 12K calls and 260 puts traded. The action includes 3,486 Oct 2.5 calls (66% offerside), 2,785 Nov 2.5 calls (78% offerside), and 2,214 Jan10 5 calls (69% mid-market/25% ask-side). Average implied volatility, meanwhile, is rallying to 128, from about 97.2 late yesterday.