Some less actively traded names seeing bullish order flow: Affymetrix (AFFX), Finistar (FNSR), Harman (HAR). Bearish order flow: AAR (AIR), William’s Companies (WMB), Red Hat (RHT). Post Earnings Activity: SAIC (SAI), Men’s Wearhouse (MW), Jackson Hewitt (JTX). Pre-Earnings Activity: Lululemon Athletica (LULU), Costco (COST), Dollar General (DG). Ex-Div Activity: Disney (DIS), Burlington Northern (BNI), Eastman Chemical (EMN), Becton Dickinson (BDX).

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

Pepsico (PEP) gapped lower and is off $2.45 to $61.03 after the company trimmed its 2009 earnings outlook and, separately, said it was dropping its Gatorade drink named after golfer Tiger Woods. Shares are down and options volume is about 4x the expected for midday, with 11K calls and 7330 puts traded. Dec and Jan10 calls at the $62.5 strike are the most actives, as some investors might be selling to close positions on the news. Dec 60 and Jan10 57.5 puts are seeing some action as well. Implied volatility (average) is up to 19.5, from about 18.8 late yesterday.

Sun Micro (JAVA) is off 2 cents to $8.47 and the Jan – Apr 9 call spread is bought at 12 cents, 12500X on PHLX. In fact, it has traded several times today and volume in both contracts now exceeds 21,500. This is possibly a roll or a time spread. Recall that Oracle has made a $9.50 per share cash bid for JAVA and is awaiting EU clearance. The EU hearing begins tomorrow and CNBC’s David Saber today notes that European Commisioner Kroes said that she “is still optimistic that we can reach a satisfactory outcome that will ensure that there is no adverse impact on effective competition in the European market.” Today’s time spread or roll from Jan to Apr might be on the view that, while a deal might indeed happen at $9.50 per share, it’s more likely to happen by April rather than mid-January.

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

Dryships (DRYS) is up 3 cents to $6.14 and the Jan10 7.5 – 9 call spread trades at 8 cents, 24716X. This looks like a closing sale. If so, it probably exits a position opened on Nov 11, when the spread traded 20000X, including 10000 bought at 30 cents. Shares were at $6.44 then and a decline in the share price along with time decay have conspired to make this spread a 73 percent loser.

Big prints in JP Morgan as the Dec. $39 call trades 20,000 contracts and the June $44 call also trades 20,000 contracts. Both appear to sales with the Dec. likely closing while the June will translate into fresh positioning.

Lexmark (LXK) saw around 3X average call volume Tuesday, with shares 1.5% lower, due to a few large block buys. One trader bought 2,600 April $30 calls, another bought 1,500 July $30 calls, and even a buyer of 80 July $35 calls with shares at $24.75. Shares are currently holding gap support at $24.75 that coincides with the 50 day EMA. $27.50 is a key breakout level. Shares are trading 10.3X earnings and just 2.16X cash with a 14.8% short float.