United Healthcare shares are up 25c to $30.10 and a notable trade was the May $31/ June $32 call spread traded 1993x (total 2010 now) on ISE, in what appears to be a roll up and out. ISEE data is consistent with 50 percent opening customer buyers. Shares are down 3.6 percent since the company reported earnings on 4/20 and this strategist might be adjusting a bullish trade, now looking for a move back beyond $32 by the June expiration.

Stocks are indicated modestly lower following a round of selling in Europe’s markets and on falling commodities prices Tuesday. Thirty minutes before the start of trading in New York, stock index future hint at a 15 or 20-point early loss for the Dow Jones Industrial Average.

Stocks are broadly lower across Europe, as Greece’s debt markets got pounded on bailout uncertainty. France’s CAC 40 Index is down 1.7 percent, UK’s FTSE 1.3 percent, and Germany’s DAX lost .7 percent.

In the US, the focus will be on Goldman Sachs (GS) today. Executives from the investment bank face a grilling before a Senate subcommittee today. Shares are down 1.1 percent in pre-market action.


But, the Dow Jones Industrial Average might find some support from better than expected earnings from 3M (MMM) and Dupont (DD). While MMM gained more than 4 percent, Dupont shares added 2.1 percent.

Lexmark (LXK), Cummin’s (CIM), US Steel (X), and CIT are also rallying around earnings. Ford Motor (F), BP, Cemex (CX), Texas Instruments (TXN), and Boston Scientific (BSX) are seeing post earnings weakness. Google (GOOG) slipped after Goldman Sachs removed the name from its Conviction Buy List.

Commodity-related names might see relative weakness after crude oil lost $1 to $83.20 and gold gave up $5 to $1149 an ounce.

On the economic front, a report on consumer confidence is due at 10:00 a.m. eastern time. Economists expect to see improvement to 53.5 in April, up from 52.5 the month before.

Bonds are bid ahead of the news. The benchmark ten-year Treasury is up 7/32nd and now yields 3.8 percent.

Meanwhile, the euro is under pressure, as the spread between Greek and German bond yields jumped to 12 year highs. The euro lost another .0108 to 1.3286 against the buck. The dollar slipped .43 to 93.55 on the yen.

Texas Instruments (TXN) shares are up 38 cents to $27.05 and about 60K contracts traded, incluing 43K calls and 17K puts. May 27, 28 and 29 calls are the most actives, and seems to include a mix of buyers and sellers taking positions ahead of earnings. The top trade hit a few minutes ago when 4450 May 29 calls traded on the 20 cent bid. A block of 3000 Jan 25 puts traded at the $1.94 asking price earlier today. The overall tone seems somewhat cautious heading into the results and implied volatility rose about 11 percent to 30.5. Meanwhile, a skew between the at-the-money May options (31.5) and June (27.8) hints at a possible earnings gap move of $1.25, or 4.6 percent, when TI reports after the closing bell.

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

Applied Materials (AMAT) is down 8 cents to $14.39 and 17K May 14 calls traded. One player sold 6000 at 70 cents each. Two other blocks, totaling 8470 contracts, traded at 73 cents and also look like sellers, possibly liquidating positions. Open interest is 29K and AMAT has been facing resistance around $14.50 for the past 10 days or so. Implied volatility is up about 6.5 percent to 32.5. Earnings expected around May 19.

Gymboree shares are off 30c to $53.75 option volume is 2x the daily average being driven by a 4,800 lot in the May $50 calls (total 5,300 trade now) at the $4.90 asking price. Looks tied to stock. Company recently tightened its Q2 guidance by raising the lower end of the range from 92c to 94c a share. Scheduled to report May 19, two days prior to the May expiration.

Etrade Financial (ETFC) is up a nickel to $1.95 and call option volume is running 9X the norm, after 58,000 contracts traded so far Monday. The top trade is 23,661 Oct 2 calls on the 26 cent bid price, which might have been tied to a block of 1.3 million shares at $1.95 and or a liquidating trade. Open interest is 74.1K and the third largest position in ETFC (behind Jan 2.5 and 5 calls). Meanwhile, May 2 and Jul 2 calls have traded 12,200 and 8045X, respectively (56% Ask). Implied volatility is up about 4 percent to 58, up from 54 shortly after the online broker reported its 11th straight quarterly loss last Wednesday.

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