More massive VIX call spreads on the tape with a late seller of 140,000 feb 22.5-25 call spreads to open for $1.45. GS also executed this trade, and if the same initiator is short both spreads the premium collected is nearly $37million, with potential risk of $43 million if VIX returns to levels above 25 in Jan and Feb of next year.

A massive call spread traded in VIX options on the CBOE today, as a customer sold 130,000 Jan 22.5 – 25 call spreads for a 1.30 credit to open a new position. With Vix currently trading near 22, this seller appears to be positioning for index (and implied volatilities in general) to hold steady or decline in the short term. VIX touched a 52wk low of 19.77 on 11/20, and this spread has helped set a new 2009 record of 415,000 contracts in the product. Sources tell us GS executed the trade.

Some less actively traded names seeing bullish order flow: Maiden Holdings (MHLD), Martin Marietta (MLM), Parr Pharmaceuticals (PRX). Bearish order flow: Lincare Holdings (LNCR), Xilinx (XLNX), Kilroy Realty (KRC). Post Earnings Activity: Collective Brands (PSS), Aeropostale (ARO), A-Power Energy (APWR). Pre-Earnings Activity: Marvell Technology (MRVL). Ex-Div Activity: Ship Finance (SFL).

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

A-Power Energy looks like a bit of a short squeeze today following the China based company’s earnings report. The results were below expectations and shares were lower by about 7% in pre-market, but quickly reversed and are now up some 5% to $16.20. Option volume is 3x the daily average with the Dec $12.50 put as the most active strike, with 3,600 contracts traded and 93% bid-side, suggesting selling. Implied volatility has dropped to the 85% level from 100% yesterday. APWR had a nice run moving from $12 to $18 so shorts probably used today’s lower opening to cover. Since shares are difficult to borrow, bears could not generate selling pressure on the disappointing results.

Shares of Accenture are up 10c to a new 52-week high of $42.12 and option volume 7x the daily average being driven a January $40/$45 risk/reversal in which 7,400 of the $40 puts were sold and 7,400 the $45 calls bought for 20c net credit. Open interest is sufficient to cover.

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

BofA (BAC) bounced back to the top of the list of most active options after the bank announced plans to repay $45 billion in TARP funds. BAC is up 2.6 percent to $16.06 (but 4 percent off its best levels) and the best gainer in the Dow Jones Industrial Average mid-morning Thursday. In the options market, volume is already 658,000 contracts, or roughly 2X the average daily. The top trades of the day include two blocks (15,380 and 12,446 contracts) of Dec 17 puts at $1 and 95 cents on the ISE. The block of 12,446 contracts is an opening customer buyer, according to ISEE data — perhaps a hedge. 97.5K Dec 17 puts now traded vs. 37K in open interest. Dec 16 puts, Dec 16 calls, and Dec 17 calls are seeing heavy trading as well. Meanwhile, implied volatility (average) is at 53.3, and not much changed today, as players in the options market brace for BofA’s next move.

Alcoa (AA) traded 43,000 calls and 15,000 puts Wednesday, 1.2X average call volume, but with every large block trading at the offer, aggressively bullish plays. Shares quietly gained 6.6% on the day and IV rose 2%. Most of the action was short term buyers of December $14 calls, as shares broke out of a triangle on 49.4M shares, nearly twice the prior day. There has not been a lot of coverage of Alcoa lately, and it could be ripe for an upgrade.