Some less actively traded names seeing bullish order flow: Emeritus (ESC), Chubb Corp. (CB), KKR Financial (KFN) Bearish order flow: Posco (PKX), Franklin Resources (BEN) Post-Earnings: Oracle (ORCL), Accenture (ACN) Pre-Earnings: Gigamedia (GIGM), Apollo Group (APOL) Ex-div.: WIN, PHG, KFT, BXP, AVB, XRX, AGNC, DOW, NUE, EPR, IVR, ITW, GAS, NFG, EIX, AJG

Lockheed Martin (LMT) is up 68 cents to $84.21 and April 90 calls are being bought. Almost 13,000 traded so far, including a block of 3,300 at 20 cents on ISE, which is an opening customer buyer, according to ISEE data. Open interest is just 505 contracts and implied volatility edged up about 2 percent to 22. No headlines on the name today and next earnings are expected around April 20, possibly outside of the April expiration.

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

Put volume is picking up in the iShares South Korea Fund (EWY) on reports a South Korean ship has sunk following an explosion along a disputed border with North Korea. EWY is off 35 cents to $48.69 and options volume is 15X the usual, with 97 percent of the volume on the put side of the options chain. The action includes an April 43- 45 put spread at 15 cents, 5000X on AMEX. 11.5K April 45 puts now traded. April puts with strike prices ranging from 43 to 49 are seeing brisk trading. July 44 puts seeing some interest as well.

Caterpillar (CAT) is up 68 cents to $62.82 and recent trades include 38K Aug 55 puts at $2.45 per contract. The block was bought on AMEX and tied to 990K shares at $62.94. Looks like a new position in anticipation of heightened volatility in the months ahead. Shares are up 23.7 percent since February 8 and implied volatility in CAT options has eased from about 43 percent to 32 percent during that time. In stock news, WSJ reported on Mar 24 that CAT will take a $100 million first quarter charge because of health bill. Next earnings expected around April 20.

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

Reliant Energy (RRI), which Citigroup whacked with a Sell rating yesterday, is up a dime to $3.69 and trying to stablize after Thursday’s 12.4 percent slide. In the options, one noteworthy recent trade is 10,000 Nov 3 calls at the $1.05 Ask price. Looks like an opening buyer and maybe hedging a short position in RRI shares.

Johnson Controls (JCI), a Milwaukee, WI auto parts maker, finished the day up two pennies to $33.13 yesterday and the May 32 – 34 strangle trades at $2.035, 10000X on ISE. Looks like a buyer opened a new position, perhaps looking for JCI to make a big move before the May expiration. On Mar 22, the stock saw a modest move higher after Jim Cramer said he likes JCI. Earnings expected around April 20 and before the May expiration.