Adobe shares are nearly flat at $35.83 this afternoon, with call volume of 11,000 contracts, more than twice the typical daily level, led by buyers of short term Jan and Feb upside strikes. While 10cent Jan 36 buyers may be closing, the Feb 37 and 38 calls are trading briskly, with nearly 1500 of each on the tape, including a buyer paying 65 cents for 1000 Feb 37s just after 2pm that the ISE reports as an opening customer purchase.

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

ATP Oil and Gas shares are down 50c to $17.67 and option volume is 3x the daily average being driven by a roll out of the January $12.50 calls and into the February $12.50 calls 5,600 times for a 15c.

PALM saw a morning spike, hitting a high of $14.14, and is now up 64 cents to $13.48 in active trading Friday. Briefing attributes the move to positive comments out of a Tier 1 firm and one savvy trader says the firm is Morgan Stanley. They also note that PALM, which has high open interest, is getting squeezed today after the Wall Street Journal reported that Verizon Wireless plans to offer lower wireless pricing plans. They note that Qualcomm (QCOM) is also benefitting from the idea that lower pricing plans from VZ will produce higher smart phone sales. In PALM options, trading is brisk — 30K calls and 21K puts traded so far. While some of the activity is in the front-month and likely due to the expiration, only 33 percent of today’s volume is in January. A lot of activity is being seen in Feb and May puts and calls as well.

Correction to the 10:35 color on Pfizer (PFE). The Jan 19 – Feb 20 call spread, which was sold 54000X at 15 cents, was sell-to-close Jan, buy-to-open Feb. It was incorrectly stated that this might roll a short call position, part of an over-write.

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

Pfizer shares are up 8c to $19.50,touching a new 52-week high and option volume is 3x the daily average. Driving the activity looks to be a roll out of the Jan. $19 calls into the Feb $20 calls 53,000 times for 15c. This could be a roll of an overwrite rather than extending outright bullish position. Pfizer has received several positive analyst reports regarding strong balance sheet and little real litigation risk on the horizon.

Put volume in Bare Escentuals spiked Thursday to 16x recent average levels, led by Feb 12.5 Puts trading for 60cents as shares traded near $13.00. A total of 2735 contracts traded and nearly all were opening. Today’s news of a cash deal with Shiseido has shares up 42% near $18.13, and these puts will likely open near zero. Clearing data confirms one side of the trade was customer and traded IV declined from 53% to 47% over the course of the day, indicating the (well informed or very lucky) seller was driving the volume.