Whatstrading.com Options Recap: Bullish trading in Chevron and Nexen, commodities market recap, large spreads on the Emerging Markets Fund, a brief comment about the VIX.

MP3 File

Some less actively traded names seeing bullish order flow: Vanda Pharmaceuticals (VNDA), CHINA, Avery Dennison (AVY). Bearish order flow: Clean Energy Fuels (CLNE), Lubrizol (LZ), FMC. Post Earnings: Allscripts (MDRX), Helen of Troy (HELE). Pre-Earnings: Alcoa (AA), KB Homes (KBH). Ex-Div: None.

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

Nexen, a Canadian oil gas extraction company, shares are down 20c to $24.15 but option volume is 20x the daily average. The notable trade was a bullish risk/reversal as someone bought the march $30 calls and sold the March $20 puts 8,100 times for 16c net credit

Cell Therapeutics (CTIC) is unchanged at $1.19 and an investor pays 23 cents for Feb 1.5 calls, 9600X on CBOE. 10.3K now traded. Another, or perhaps the same, apparently bought Feb 1.5 puts at 60 cents, 4,920X on NYSE. 6,000 now traded. Implied volatility (average) is elevated at about 225, as investors await the FDA review of the New Drug Application for pixantrone for the treatment of relapsed/refractory aggressive non-Hodgkin’s lymphoma, due Feb 10, 2010.

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

MannKind (MNKD) shares slipped at the open, falling to $7.48, but have since battled back and are up 38 cents to $8.42. The volatility in MNKD shares comes after the company announced the FDA has informed them that the FDA will not be able to complete its review of Afrezza by the targeted Jan 16 action date. While the early reaction was negative, the stock is back into positive ground and implied volatility is falling, as it doesn’t appear that the delay reflects on the FDA’s view on the data. Options action is brisk, as some premium sellers have surfaced in reaction to the news. Implied volatility (average) is down about 39 percent to about 125.

Dow component Chevron shares are up $1.50 to $81.05, a new 52-week high, and notable trade was 2,300 contract block of the June $80 puts traded that appears tied to stock. Trading is active in the first hour, with 9,980 puts and 7,740 calls traded so far, about 6X the expected. (Note: Citi upgraded CVX, BP, PBR) after raising their price assumption on oil to $80 from $65).