Allergan (AGN) is off 48 cents to $60.44 and options volume is running 2X the average daily, with 3790 calls and 145 puts traded. The bulk of the volume is in the biotech’s January 65 and 70 calls, with 2275 and 1425 traded, respectively. In addition, with more than 95 percent of the volume traded ask-side, looks like buyers are dominating the action after Brean Murray analysts initiated the stock with a Buy rating and $75 price target. Open interest is sufficient to cover in both contracts. So, some of the action might be closing.

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

Rimm options have been very active heading into tonight’s earnings, with 1.2million calls and 650,000 puts trading so far this month, and total open interest growing by 266,000 contracts to current levels of about 1million calls and 550,000 puts. Shares have lifted almost $4 since Dec 1, to current levels near $63.38 and recent volume has been mixed, with large upside blocks of Jan 80 and March 100 strike calls trading in the 30-40cent range, and more conservative trades in strikes closer to spot. Dec open interest has grown by 10,000 calls and 50,000 puts over the month, with 30k Dec 60 puts opened over the period. Last earnings release was a gap lower of nearly 12points and current straddle price suggests a gap move of nearly $5 on tonight’s release.

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

Citi (C) shares are down 25 cents to $3.20 and active trading continues in the options market after the Treasury Department backed out of plans to sell its 34 percent stake in the bank. The unexpected reversal in the government’s pledge to unwind ownership in Citi and other banks, has C trading lower and 441K contracts on the tape in the first 15 minutes. Morning trades include a seller of 10K Jan11 2.5 puts at 37 cents and a seller of 8850 Mar 3 calls at 49 cents.