Players have been sizing up Cisco (CSCO) ahead of earnings. Shares are up one penny to $23.03 and 271,000 options traded so far (178K calls). Feb 24 calls are the busiest. 36K changed hands. Meanwhile, more than 25K April 21 puts traded. The action includes a bullish April 21 – 24 risk reversal (bought April 24 calls, sold April 21 puts), bought at 25 cents, 10000X. Another large spread, a three way, involved the April 24 – 46 call spread and April 21 puts, at four cents, 10400X. It was crossed and tied to shares on a 30 delta. The overall tone of trading seems to reflect expectations for a good report. Meanwhile, a volatility skew between Feb (30.5) and Mar (26.3) hints at a possible 4.1 percent earnings gap move when Cisco reports after the closing bell.

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

Big Prints in DR Horton (DHI) today after an investor sells the Aug 13 straddle, 12000X. They collected $3.4 to sell both puts and calls. The action comes as shares drift down 31 cents to $12.90, the day after the homebuilder rallied 10.9 percent on earnings. This strategist might now expect shares to hold around these levels in the months ahead and is selling-to-open a new position in the at-the-money August straddle.

CH Robinson Worldwide (CHRW) is down $3.42 to $54 per share, the biggest percentage loser in the NASDAQ 100, after the company missed on earnings and BB&T analysts cut the stock to Hold from Buy. In the options market, volume is 9x the average daily. One trader bought 12K Aug 65 calls and bought 150K shares. They also sold 2000 Aug 45 puts, sold 4000 Aug 55 calls and sold 4000 Aug 60 calls. Overall, looks like a bullish play, but it might be closing out or adjusting positions after today’s slide. Open interest is sufficient to cover in all four contracts.

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

PowerShares Bullish Dollar Fund (UUP) is up 12 cents to $23.39 after the buck made strides against some of the other major currencies Tuesday. In the options market, UUP Mar 24 calls are among today’s most actives. The action includes a block of 23K bought at 14 cents per contract and is probably a big premium purchase in anticipation of further gains for the buck. March options expire in 44 days. Shares are trading for $23.40 and the cost is 14 cents. So, it would take a move to $24.14 (3.2 percent) to break-even at expiration. It’s not a large percentage move, but keep in mind, the fund tracks the dollar against a basket of different currencies — not just the euro or the yen. Therefore, it is not known for its volatility. In fact, the 20-day actual volatility of the UUP (which is based on the price action over the past 20 days) is only 7 percent. By way of comparison, the actual volatility of the S&P 500 is now 15.6 percent.

Toyota Motors (TM) is off another $5.26 to $72.92 and options volume is 5X the average daily after Bloomberg reports the US recommends that Toyota owners should stop driving recalled vehicles — dealing yet another blow to the Japanese automaker. 20K puts and 8,700 calls traded so far. Feb 70 puts and 80 calls are the most actives and implied volatility is up another 7 percent, to 42, as investors brace for TM’s next move.

Genzyme (GENZ) trader takes a bullish bet as shares trade for $55 Tuesday, and the trade was done twice, 2,500 contracts each. In this trade, the strategist sold April $47.50 puts at 65 cents and bought the April $60 calls at $1.05 in bullish risk reversals. Shares were hanging around the 200 day EMA and are breaking out of a bullish flag today, and also out of a longer term downtrend. Earnings are scheduled for 2/17 and large cap Biotech stocks have done well so far this earnings season with Gilead (GILD) and Amgen (AMGN) reporting solid forecasts. Genzyme has a PDUFA date set for June 17th for Lumizyme in Pompe disease. This trader may be looking for an early response from the FDA or is just playing the technical strength.