Some less actively traded names seeing bullish order flow: NuStar Energy (NU), Myriad Genetics (MYGN), PMI. Bearish order flow: Isle of Capri Casinos (ISLE), Cheniere Energy (CQP), GSI Commerce (GSIC). Post Earnings Activity: Jabil Circuits (JBL). Pre-Earnings Activity: Red Hat (RHT). Ex-Div Activity: General Electric (GE), iShares Small Cap Fund (IWM), Phillip Morris (PM).

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

Lennar (LEN), a homebuilder, is up 41 cents to $13.27 on the heels of today’s better-than-expected existing home sales numbers. Options volume is running 2X the average daily, led by sellers of Jan 2010 calls at the 13 line. Some might have been buy-writes, as blocks that hit bid-side for 65 cents midday coincided with blocks of shares around $13.10.

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

Barrick Gold (ABX) is down 10 cents to $38.86 and an investor sells the April 35 – 50 strangle and buys April 40 calls, 2500X. Looks like 10000 now traded and this strategist might be looking for a move towards $50, but not beyond, by the April expiration.

CBOE Volatility Index (.VIX) dips below 20. VIX is down .60 to 19.89 and hit session lows shortly after a report on existing home sales showed improvement to an annual rate of 6.54 million, up from 6.10 million and better than the 6.25 million economists were expecting. S&P 500 Index (SPX) hit a new 52-week high and VIX fell to within striking distance of its Nov 20 intra-day low of 19.77 and falling well below its 1-year closing low of 20.47 set on Nov 24.

Research In Motion (RIMM) is off 20 cents to $69.50 and early trades include a Feb 60 put – Mar 75 call risk reversal, 2100X on AMEX. Looks like they paid $2.25 to buy calls, sell puts (collecting $1.15 on the Feb 60 puts.)

Stocks are indicated modestly higher following gains Monday and strength in overseas markets. Less than thirty minutes before the opening bell on Wall Street, stock index futures hint at a possible 20 or 30 point early advance for the Dow Jones Industrial Average.

Stock index futures continued the advance from Monday, which was driven by end-of-year window dressing and analyst upgrades of Dow components Alcoa (AA) and Intel (INTC).

Benchmarks across Europe and Asia followed. Japan’s Nikkei rallied 1.9 percent and Hong Kong’s Hang Seng rose .7 percent. UK’s FTSE is up .7 percent and pacing a modest advance in Europe.

Stock index futures came off their best levels, however, following a disappointing reading on third quarter GDP, which is estimated to have increased at a 2.2 percent annual rate. Economists were expecting the report to show 2.8 percent growth.

Attention turns to a report on existing home sales at 10:00 eastern time. Economists forecast sales to improve to a 6.25 million annual rate, up from 6.10 million the month before.


Bonds are seeing losses ahead of the news. The benchmark ten-year Treasury is down 8/32nd and yields 3.7 percent.

The dollar is mixed, gaining .28 to 91.40 against the Japanese yen. The euro added .0026 to 1.4308 against the buck.

Metals, mining and energy names might see early weakness after crude oil slipped 49 cents to $73.23 a barrel and gold lost $4.5 to $1091.50 an ounce.

Jabil Circuit (JBL), Amkor (AMKR), and Navistar (NAV) are up on earnings news. YRC Worldwide (YRCW) gained 4.5 percent after receiving regulator approval for a debt-for-equity offering. Ameritrade (AMTD) gained 2 percent after Keefe Bruyette analysts upgraded the stock to Outperform. Commercial Metals (CMC) is down after reporting a quarterly loss of 28 cents per share. Micron Technology (MU) might see action ahead of earnings, due out after the closing bell.