Las Vegas Sands (LVS) is down $1.64 to $14.42 and falling in sympathy with Wynn Resorts (WYNN). Wynn shares sank after the company’s third quarter results easily beat Street estimates, but the results at its Macau operations were apparently not as strong as some investors had hoped. WYNN is down $6.89 to $56.22. LVS, which releases results Thursday after market, is taking a hit as well and recent trades include 5000 Dec 12 put – Dec 17.5 call risk-reversals. It looks like the strategist came out even to buy puts, sell calls. 58K calls and 40K puts traded total. Meanwhile, implied volatility (average) is heading up to 78, from about 70.3 late Monday, as investors brace for the casino operator’s earnings release.

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

Wynn Resorts (WYNN) is taking a 10 percent hit even after the company reported better-than-expected third quarter results and saying in the post-earnings conference call that the casino operator’s results in 2009 are likely “to equal or beat” its 2008 results in both Macau and Las Vegas. Some investors might have been disappointed with results in Macua, the only place in China were gambling is legal. The market is considered an important one for WYNN and other casino operators and earnings from Macau operations only beat Street expectations by 2 percent. Some investors might have been expecting more.

In the options, trading in WYNN is brisk, with 29K calls and 16K puts traded midday. Most of the action is in the front-month, with heavy trading in Nov puts and calls with strike prices ranging from 55 to 70. Implied volatility is down to 57, from 62, as some investors exit positions as shares falter.

Carter’s (CRI) shares tumbled $6.30 to $22.14 and options volume surged to 227X the average daily after the co. delayed the release of its third quarter earnings, which was scheduled for this evening. The co. says it is completing a review of accounting for margin support to whoelsale customers. A matter arose late in the preparation of the release and more time is required. It expects to report by Nov 12. Shares are getting slammed and 16K options traded so far. The action is scattered across Nov and Dec puts and calls with strike prices ranging from 12.5 to 25. Implied volatility (average) rallied to 86.6, from 47.5 late yesterday.

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

PCX Patriot Coal (PCX) is up $2.18 to $13.37 after reporting third quarter earnings that met Street estimates, but then said that the fourth quarter is shaping up nicely. Customer demand has stabilized heading into 2010, according to the coal company. Shares are up and 6,235 calls traded, compared to 2,993 puts. Nov 12.5 and 14 calls are the most actives, as some investors position for additional upside in PCX.

CIT is down 6 cents to $1.01 and Nov 1 puts are seeing interest. 5371 traded in the first ten minutes and about 55 percent traded ask-side. The stock is down and puts are being bought, even as Carl Icahn attempts to provide downside protection for smaller note holders by offering a 30-day tender offer at 60 percent of par value. Icahn is trying to build opposition to CIT’s pre-packaged bankruptcy plan (Link to Story). The company is due to report earnings Thursday, before market.

Sun Micro (JAVA) continues to have bearish sentiment with 16,500 puts trading Monday, as compared to 6,400 calls, and implied volatility rose 14% to 56% on continued worries the EU will block Oracle’s attempted takeover, also possibly the reason for Oracle’s recent bullish call activity. The largest trade of the day was a buyer of 3,000 January $7.50 puts at the 42 cent offer. 52% of call volume was sold at the bid while 45% of put volume was bought at the offer. Shares have fallen from $9.15 to $8.30 in a weeks time, almost unheard of declines for a Company with a deal on the table.

Stocks are set to trade mixed, as investors react to the latest round of earnings news and await a report on consumer confidence Tuesday. Fifteen minutes before the opening bell on Wall Street, stock index futures indicate point to a flat open for the stock market averages.

The tone of trading remains cautious after a sell-off on Wall Street Monday was followed by a round of selling in overseas markets. Japan’s Nikkei lost 1.5 percent and Hong Kong’s Hang Seng slid 1.9 percent. Major averages are mixed in Europe.

The day’s earnings news is mixed. BP is up 5 percent after reporting earnings that missed Street estimates, but revenues that beat expectations. US Steel (X) is flat after reporting a quarterly loss of $2.11 per share, which as not as bad as the $2.87 loss analyst had expected. Baidu.com (BIDU) sank 19 percent after the internet company reported strong results for the third quarter, but guided fourth quarter estimates sharply lower.

In economic news, the latest Case Shiller Home Price Index fell a bit less than expected. The index fell 11.32 percent, which was better than the 13.26 percent in July and slightly less than the 11.9 percent economists had expected.

A report on Consumer Confidence is due out at 10:00. Economists expect to see modest improvement in October, to 53.5 from 53.1 in September.

Bonds are flat ahead of the news. The benchmark ten-year Treasury is up 1/32nd and now yields 3.548 percent.

The dollar slipped .20 to 92.01 against the yen. The euro is up .0011 to 1.4872 against the buck.

Meanwhile, trading is quiet in the commodities market. Crude oil added .53 to $79.21 a barrel. Gold lost $2.30 to $1040.40 an ounce.