Some less actively traded names seeing bullish order flow: Informatica (INFY), GTX Inc (GTXI), Aruba Networks (ARUN) Bearish order flow: NCR, Knight Transportation (KNX), Barry Pete (BRY) Post-Earnings: Overstock.com (OSTK), SAIC (SAI), SmartHeat (HEAT) Pr-Earnings: Research In Motion (RIMM) Ex-div.: Toronto Dominion Bank (TD), Raytheon (RTN)

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

ArQule (ARQL) shares rallied $2.50 to $6 and implied volatility is crashing down after the biotech’s ARQ 197 showed some success in treating patients with non-small cell lung cancer. Options volume surged to more than 3000X the recent average daily on the news, with 7750 calls and 8400 puts traded so far. Trading is brisk in Apr 7.5 calls, Apr 5 puts, Apr 7.5 puts, July 5 puts and July 7.5 calls. Premium sellers have surfaced and, consequently, implied volatility has fallen about 60 percent, but remains elevated around 115.

JDS Uniphase (JDSU) broke above previous resistance to fresh 52-week highs this morning after Thomas Weisel Partners raised a price target on the stock to $18 from $15. Shares were recently up 69 cents to $12.68 and JDSU calls are seeing brisk trading. 19,000 contracts changed hands so far, including a multi-exchange sweep of 12.4K Jun 13 calls at the 95-cent Ask price. Looks opening and ISEE data hints at a non-customer or firm buyer, possibly looking for today’s rally to continue and lift the stock towards the $18 price target by mid-June.

In front of this afternoon’s earnings, RIMM option flow is running 5x the usual pace, with 70,000 contracts trading as shares trade down 45 cents near $74.46. April 80 calls are the most active, with 8000 trading and several sweep sellers collecting $1.80 down to $1.58 for a few thousand contracts. April 80 calls have been the most active since March expiry, with nearly 100,000 contracts trading and a doubling of open interest to nearly 44,000 contracts as of this morning. April atm IV of 55% vs May of 41% suggests traders pricing in a gap move near $6, comparable with the $8 move experienced in December.

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

Teva saw notable trade as the June 60/70 risk reversal traded 3,500 in what looks like opening bearish position. The puts were bought for $1.26 while calls sold at 31c a contract.

Ford shares are down 55c to $12.70 following the pricing and sale of some $1.7 billion in warrants that will go towards the UAWs retirees’s medical benefits program. Option activity is running 2x the daily average with the most active strike being the April $14 call with 47,000 contracts traded which represents over 50% of the open interest. Two sided trade in the April $13 put with 26,000 contracts traded.