Some less actively traded names seeing bullish order flow: Commercial Metals (CMC), AsiaInfo (ASIA), North American Palladium (PAL). Bearish order flow: Royal Gold (RGLD), Allegiant Travel (ALGT), Cabot Oil and Gas (COG). Post Earnings Activity: Shanda Interactive (SNDA). Pre-Earnings Activity: Aeropostale (ARO), A-Power (APWR), Collective Brands (PSS). Ex-Div Activity: Nike (NKE), Companhia de Blahblah (ABV).

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

Chesapeake (CHK) is down 85 cents to $23.25 and one strategist sells 24.2K April 35 calls at 13 cents each. It might be tied to a block of 100K shares at $23.25 about ten minutes later. The premium sale might also be a liquidation, as open interest is 30.8K and the contract is 50.5 percent out-of-the-money.

Electronic Arts shares are off 10c to $16.90 notable put buying in the march $17p in which there was a sweep of 4,420 contracts and now a total of 8,850 contracts have traded against prior open interest of 5,300 contracts. The March $17 call traded a block of 1,300 calls in what looks like a purchase that was tied to stock. Video game makers, and especially retailer such as Gamestop (GME) are under pressure today on news that Wal-Mart will be lowering prices on games.

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

UAL Corp. (UAUA) is up 91 cents to $9.17 after Morgan Stanley upgraded the airline sector to Attractive, citing better earnings and liquidity projections for 2010. They upgraded UAL and AMR to Overweight from Equal Weight. In UAUA, options activity is running at 12X the expected for midday, including 12K puts and 15K calls. One player bot 2500 Dec 8 puts at 25 cents each, possibly hedging a position in shares. A block of 3500 Jan11 2.5 puts at 30 cents on PHLX is possibly a hedge or a premium seller (hit mid-market). Dec and Jan10 $9 and $10 calls are seeing action as well. Implied volatility (average) is up to 90, from about 88.5 late Tuesday.

Mosaic (MOS) calls are active, as the company begins a presentation at the Citigroup Basic Materials Conference, which started about 10 minutes ago (10:45). Shares opened higher and are trading up $3 to $60.17 amid relative strength in the fertilizer names (POT, AGU, CF, IPI, TRA). In the options, 31K calls and 10K puts traded on MOS, or about 8X the expected. Jan10 75, Dec 65, Jan10 70, Dec 60, and Dec 55 calls are the most actives. The top trade is a block of 5000 Jan10 75 calls bought at 55 cents (adjusted) against a position in MOS shares at $60.15. The next biggest trades: 2000 Dec 45 – 50 put spreads apparently bot at 20 cents, 2000X. So, while calls are dominating the action, the top trades (long calls/short stock and the put spread) reflect some defensiveness as the presentation gets underway.

Marvell Technology (MRVL) added nearly 4 percent and traded 8,400 calls and 2,700 puts Tuesday ahead of 12/3 earnings. The options action was a mix late in the day of the same strategy emulated a few times in large size amounting for around 2,000 X 4,000 December 16/17 ratio call spreads, the $16’s being bought and the $17’s being sold in a slightly bullish in price, and bearish the 47% implied volatility strategy. Maximum profits are realized on expiration on a move to $17, or 6% higher from here and at a previous double top resistance. Shares are fairly valued at 16.2X earnings, but profitability ratios are worrisome.