Some less actively traded names seeing bullish order flow: Mirant (MIR), Align Tech (ALGN), The Pantry (PTRY) Bearish order flow: Avnet (AVT), Allegiant Travel (ALGT), AMAG Pharmaceuticals (AMAG). Post Earnings: Fastenal (FAST), IIVI, New Orient Ed (EDU), Parker Hannifan (PH), Ameritrade (AMTD) Pre-Earnings: IBM, CSX, CREE, Asmel (ASML), Coach (COH) Ex-Div: P&G (PG)

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

Rambus (RMBS) saw a morning spike, to $21.66, on heavy volume amid market chatter about a legal settlement — Briefing. However, the early advance didn’t last and RMBS is now extending the losses suffered last week, when shares tumbled on news the company’s $4.3 bln memory chip trial was being delayed. RMBS is down 6 cents to $20.71 and 14K calls traded today. Front month calls with strike prices ranging from 21 to 35 are seeing the bulk of the flow and, while there was some evidence of premium buying early, looks like an increasing percentage of today’s action in RMBS calls is now trading on the bid. Implied volatility in the Feb 22.5 and 25 calls, today’s most actives, is down about 2 percent to 85.

From Steve Smith. Ciena (CIEN) shares are up $1.10 to $12.75 following an analyst upgrade and there is active trading in the February $12, $13 & $14 calls with a total of 7,859 contracts traded. Most of the volume is coming in small lots, largest trade was 800 of the $13 calls, at the Ask, 65 cents on the PHLX.

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

Teva Pharmaceutical sees the June $60 and Sep. $62.50 calls trade 4,400 times each in a spread in which it looks like purchase of June and sale of Sep for 20c debit.

Apollo Group (APOL) is down $1.20 to $59.17 amid relative weakness in the education stocks (ESI, COCO, DV, CECO). However, APOL options saw noteworthy trading activity late Friday when a strategist bought-to-open large blocks of August and Jan 2011 call options. According to a floor contract, they bought 7000 Aug 70s, 10K Aug 75s, 13K Jan 80s, and 17.5K Jan 85s — all tied to 1.315 mln shares at $60.082. The combined activity created 51K contracts of new open interest in APOL call options. According to Option Hawk’s Joe Kunkle, “The bullish bets [in APOL] could be looking for an eventual takeover, a change in legislation, or an end to the companies legal issues with accounting methods.”

Cadbury (CBY) is up $2.75 to $54.65 after Kraft (KFT) sweetened its bid for the company to $19.5 billion, a move that won support from UK’s chocolate company. A noteworthy spread traded late Friday ahead of the announcement after a strategist apparently bought 20K Feb 45 – 55 put spreads and sold 20K Mar 55 calls. If so, they paid about 12 cents for this three-way and were possibly hedging a position in CBY should a deal fail to materialize between the two food companies.