BP gapped higher and is up $2.42 to $44.83 after Bloomberg reported operation “top kill” temporarily stopped the oil flow from the Gulf spill. Meanwhile, Oppenheimer upgraded the stock to Outperform, saying the upside potential for shares is now significantly greater than the downside risk. Some players in the options market seem to agree. 53K calls and 25K puts traded in BP during the first hour. The top trade is a block of 4400 Jan 47 calls at $3.75 and likely a buy-write, as it coincided with a block of 440K shares at $45.13. Beyond that, most of the trades have been in smaller lots, including a Jun 45 – 50 – 55 call fly at $1.20, 396X on ISE. This fly might be closing or, if bought, is targeting a range for BP shares between $46.2 and $53.8 by the June options expiration (22 days).