Crucell (CRXL), which saw a noticable uptick in options action last Monday on talk Sanofi (SNY) might bid for the company, is down $1.39 to $22.31 today, even after J&J (JNJ) unveiled plans to take an 18 percent stake in CRXL (Link to Story). The action in the options pits seems to reflect some disappointment as well, with volume hitting 3X the usual. Sellers are active in Dec 20, Oct 20, Nov 25, and Oct 22.5 calls. Meanwhile, implied volatility (average) in CRXL is crashing down below 50, from about 61 late Friday.

Green Mountain Coffee Roasters (GMCR) rallied in morning trading Monday and hit a new 52-week high. Shares are up $4.19 to $73.12 and GMCR October calls are seeing heavy trading. October 80s are the most actives, with 1,925 traded and 84 percent hitting ask-side. With volume exceeding open interest, it looks like call buyers are looking for additional upside. Two-sided trading seen in the Oct 70s and 75s. Implied volatility (average) is up to 57.3, from about 53 late Friday. Still checking for possible catalysts behind today’s relative strength and speculative call activity in GMCR.

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

Research in Motion options are the second most active single stock today, continuing action from last week when the stock shed more than $15 on disappointing earnings. With shares down about 2% near $67.37, the Oct 65p and 70c lead the flow, with nearly 12,000 of each on the tape and bid-side flow suggesting sellers leading the activity, possibly with a view that shares will settle into a range over the next few weeks.

Acorda Therapeutics (ACOR) had a trader buy the November $25/$30 call spread for 1,000 contracts at $1.90 with shares at just $23.54 Friday, betting on positive FDA announcement. The spread also neutralizes some of the impact of the 123% implied volatility. Acorda has one of the leading Multiple Schelrosis drugs and recently released safety data for Fampridine-SR as well as positive study data for the drugs effectiveness. The FDA PDUFA date is set for October 22nd, and this trade is betting on a positive outcome.

Big Prints in the iShares MSCI Austrailia Fund (EWA) Monday morning after an investor bought 36K Jan10 puts at the 20 line for 90 cents and sold 12K Jan10 24 puts for $3, apparently collecting 30 cents to open a 1X3 put ratio backspread. Shares are up 27 cents to $22.27.

Applied Materials (AMAT) is up 51 cents to $13.61 after Citi upgraded the chip equipment maker to Buy. 7,700 AMAT calls traded so far, compared to 630 puts. The volume includes a block of 2,633 Oct 13s mid-market for 80 cents, which might have been sold-to-close now that the stock is moving above the strike. However, 6,550 now traded and about 42 percent hitting ask-side. Looks like some buying interest in Oct 14 and Nov 15 calls as well.

Stocks are indicated modestly higher, as investors react to merger news and await a busy week for economic data. Thirty minutes before the start of trading in New York, stock index futures hint at modest gains for both the Dow Jones Industrial Average and the NASDAQ.

A series of deals were announced. Xerox (XRX) is buying Affiliated Computers Services (ACS), sending ACS up more than 20 percent.

Abbott Labs (ABT) said it is buying the pharmaceutical business of Belgium’s Solvay and Johnson & Johnson (JNJ) is buying 18 percent of Crucell (CRXL).

Among the other stocks to watch, Cisco (CSCO) is up 3 percent after Barclay’s upgraded the stock to Overweight. Applied Materials (AMAT) was upgraded to Buy at Cit. YRC Worldwide (YRCW) rose on financing news. MEMC (WFR) slipped 3 percent after Cit downgraded the stock to Hold. Cal-Maine Foods (CALM) is down on earnings news.

There is no economic data today, but he calendar is chock full of numbers later this week, including manufacturing Wednesday, auto and truck sales Thursday, and key jobs data Friday.


With little news to guide the action, bonds are holding steady in quiet early trading. The benchmark ten-year Treasury is down 3/32nd and yields 3.33 percent.

Crude oil is down 10 cents to $66 a barrel and gold gained $1.6 to $993.20 an ounce.