Berkshire Hathaway (BRK/B) is down 94 cents to $75.75, even as the stock is poised to see a flurry of buying interest when it is added to the S&P 500 Index later today. It doesn’t seem that many investors expect much of a boost from the “index effect”, as shares are down and one of the top trades is a seller of 10K Mar 78 calls at $1.60 per contract. 23.8K now traded. Overall, options action is brisk. 56K calls and 38K puts changed hands. Implied volatility has fallen about 6 percent to 30. The stock had risen 12.8 percent since the S&P made the announcement and so the possibility of a lift from the index effect might have already been discounted in the share price.

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

NY Expo Case Study. iShares Silver Fund (SLV) is down 18 cents to $15.19 after silver lost 11 cents to $15.48 and the June 13 – 19 risk reversal trades at 11 cents, 10000X. They bought puts, sold calls against a position in SLV shares at $15.20. So, this basically looks like a collar — long stock, long puts, short calls.

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

Abercrombie (ANF) is up 67 cents to $33.66 and the Feb 28 – 32 put spread that traded 10000X at 49 cents Thursday appears to have been an opening trade. This likely adds to an existing hedge or bearish trade, as open interest in the two contracts is now 33.6K in the 32s and 24.8K in the 28s — the largest options positions in the retailer. The action comes ahead of a Feb 16 (before market) earnings release.

NY Expo Case Study. GE is down 2.2 percent to $15.43, as a broad sell-off sent GE and all 29 other Dow stocks lower at the opening bell Friday. Weak Euro-zone economic growth numbers, a tumbling euro, falling commodities prices, and a second move by the People’s Bank of China to raise reserve requirements seem to be weighing on morning action. In GE options, one noteworthy early trade is a June 11 – 15 put spread, apparently bought at 89 cents, 5000X on PHLX.

Stocks are indicated lower amid concerns about the global economic outlook Friday. Thirty minutes before the opening bell on Wall Street, stock index futures hint at a possible 50 or 60-point early loss for the Dow Jones Industrial Average.

Stock index futures fell after the People’s Bank of China announced plans to limit liquidity to capital markets by requiring banks to hold more money at China’s central bank. It’s the second time this year Chinese officials have raised reserve requirements to cool economic growth.

Asia’s markets closed mixed before the announcement was made. Meanwhile, trading across Europe is sluggish Friday after economic data showed 16-country eurozone growth at only 0.1 percent in the fourth quarter. Markets are lower in France and the UK, but modestly higher in Germany.

The dollar is up .54 to 90.28 against the yen and investors are also watching the euro take another hit, falling .0108 to 1.3585.

Crude and gold are under pressure as well. Crude lost $1.13 to $74.15 a barrel and gold shed $6.7 to $1088.

In the US, the day’s news is a bit brighter. Data released early Friday showed retail sales increasing at a better-than-expected .5 percent rate in January. Economists were looking for an increase of only .3 percent.

The University of Michigan Consumer Sentiment Index for February is due out at 9:55 eastern time. Economists expect improvement to 75, up from 74.4 the month before.

Bonds have found the flight-to-safety bid and are holding gains despite the strong retail sales report. The benchmark ten-year Treasury is up 5/32nd and now yields 3.7 percent.

Among the stocks to watch, Skillsoft (SKIL) is up 10 percent on news a private equity group is acquiring the company at $10.80 per share. Motorola (MOT) rose 3 percent after announcing plans to split itself in two companies. Agilent (A) edged higher after announcing a 38-cent per share quarterly profit, which beat Street estimates by 6 cents.