Story Stocks (LEN, TASR, GILD). Solar Stocks Shine. A closer look at VIX. Bearish trading in the small caps.

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Some less actively traded names seeing bullish order flow: Sonus (SONS), NGAS, Interpublic Group (IPG). Bearish order flow: The Limited (LTD), Lincare (LNCR). Stage Stores (SSI) Post Earnings: Mosaic (MOS), Monsanto (MON), Family Dollar Stores (FDO). Pre-Earnings: Lennar (LEN), Bed Bath and Beyond (BBBY), Immucor (BLUD), Standard Microsysems (SMSC), Constellation Brands (STZ), Texas Industries (TXI). Ex-Div Activity: American Express (AXP), Progress Energy (PGN), General Mills (GIS), Universal Corp. (UVV),

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

JA Solar (JASO) is up 39 cents to $6.72 and call volume is outpacing put activity by a ratio of roughly 10-to-1. 8,060 calls traded so far, with Jan, Feb, Mar and Jun 7.5 calls among the most actives. Looks like speculative call buying after Oppenheimer raised earnings estimates on JASO and a number of other Chinese solar stocks, saying fourth and first quarter guidance will prove stronger than seasonal.

From the Options Clearing Corp.:

CHICAGO (January 5, 2010) The Options Clearing Corporation (OCC) announced today that 2009 was the busiest year in the 36-year history of the clearinghouse with record levels of options trading and major expansions of its futures and stock loan services.

Options: Exchange-listed options trading in the U.S., OCC’s core business, achieved its seventh consecutive record year in 2009. Investors returning to the marketplace looked to options to manage their risk after the financial crisis, lifting trading 0.8 percent than 2008, despite earlier predictions of declines.

Futures: The addition of two new futures exchanges brought OCC’s futures clearing to its highest volume level, about 140 percent higher than 2008, and 34 percent higher than the previous peak recorded in 2007.

Securities Lending: OCC expanded its stock loan program in 2009 and began operating as the central counterparty for the AQS platform. The year ended with a stock loan contract notional value of $16,046,138,414.


Source: Options Clearing Corp.

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

VIX is down .52 to 18.83 and near session lows, as the S&P 500 Index (.SPX) trades in a very narrow 4 point range and adds 1 point midday Wednesday. After a relatively large move Monday (SPX up 18 points), overall levels of market volatility have subsided again and the 20-day statistical volatility of the S&P 500 Index is just 12.25 percent. So, relative to actual volatility, VIX is still high and that helps explain why it is falling to its lowest levels since August 25, 2008. A close below 18.81 would represent the lowest close in the volatility index since June 5, 2008, when it finished the day at 18.63.

Origin Agritech (SEED) is up 22 cents to $13.18 and Jan calls are seeing interest amid renewed takeover chatter. SEED action saw similar activity on Dec 16. Today’s twist mentions Monsanto (MON) as a possible bidder. It’s unsubstantiated, but has triggered a reaction in the options market, with some players buying Jan 14 and 15 calls, lifting implied vols about 10.5 percent towards 104.