Salesforce.com (CRM) is up $3.19 to $82.22 and options volume is 10.5X the recent average daily. Shares experienced volatility early after the company reported earnings and issued a full year outlook that fell short of some expectations. However, Wedbush analsyts said CRM should be bought on any weakness and some investors seem to agree. Shares are up 11.2 percent from session lows. In the options market, the bulk of the activity is due to an Aug 85 – 100 call ratio spread, sold at $2.45, 13000X on CBOE. It likely exits a position opened at $2.90 on April 12.

Celldex Therapeutics (CLDX) is down 57 cents to $7.11, as some investors seem disappointed with the biotech’s four abstracts on data that will be presented at ASCO in June. However, while shares are down, options volume is 4X the average daily, with 9225 calls and 570 puts traded. The top trade is a block of 1000 August 7.5 calls at $1 on ISE, which might be a seller offsetting a position. However, a total of 2625 calls have been bought-to-open so far on the ISE, as some investors might be taking positions in the June 7.5 and 10 calls ahead of the ASCO presentations (June 4 -5). Others are probably closing some positions opened yesterday. 8645 calls traded in the name Thursday. Implied volatility rose to 178, from 166, and is back to 165 Friday morning.

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

CBOE Volatility Index (.VIX) is down 5.20 to 40.59, falling to session lows and off 15.8 percent from its best levels (48.20 – highest since March 2009). VIX has now retraced 48.3 percent of the 10.77 point advance yesterday. The decline in the volatility index comes after the S&P 500 bounced off 1,055.90 and not far from its 2010 closing low of 1056.74 set back in February. The S&P 500 is now up 12.3 to 1083.85 with noteable strength in the financials. JP Morgan (JPM) is up 5.2 percent and the best gainer in the Dow. XLF added 2.9 percent and up more than 5 percent from session lows. Options expiration is likely adding some volatility to the mix. About 5.2 million calls and 6.7 million puts traded so far, or 2X normal for the first two hours.

Options on Citi have dominated the single stock space this year, with more than 75Million contracts changing hands since January, and an avg daily volume near a million contracts, or 8% of the market-wide single stock volume. Today is on pace to set a new record, with half a million Citi contracts trading in the first 45 minutes of the day, including a block of 45,000 Jun 3 puts sold for 6.5cents on the AMEX as shares traded near $3.65. The seller may be closing part of the June 3-4 strangle that traded earlier this year for 22-24cents when shares were near $3.42.

Stocks are indicated lower, as global equity markets remain under pressure Friday. Less than thirty minutes before the opening bell on Wall Street, index futures indicate that the Dow Jones Industrial Average might lose another 80 or 90 points at the open.

With little positive news to financial markets Friday, the bearish underlying tone continues and global equity markets remained in the red after the Dow tumbled 376 points the day before. Japan’s Nikkei lost another 2.5 percent and major averages are broadly lower across Europe. Germany’s DAX is pacing the decline, with a 2.7 percent loss.

Commodities are also falling on worries about the global economic outlook, with crude oil falling $1.40 to $69.40 a barrel and gold losing $13 to $1175.60 an ounce.

The euro has battled back to 1.2567 against the buck, up .0102. The dollar added .21 to 89.27 against the Japanese yen.

With no economic data to guide the day’s trading, bonds are benefitting from the flight-to-safety bid. The benchmark ten-year Treasury is up another 24/32nd and now yields just 3.1 percent.

The options expiration might add some fun to the mix. Today is the last day to close out expiring May contracts ahead of the expiry tomorrow.

In stock news, Dell Computer (DELL) is down 3 percent after reporting a 30-cent per share profit, which beat analyst estimates by 3 cents. Some investors were disappointed with profit margin numbers. Salesforce.com (CRM) and Brocade (BRCD) are also seeing post-earnings weakness. Marvell Tech (MRVL) is seeing modest gains after reporting a 38-cent per share profit, which beat Street estimates by a penny. Campbell Soup (CPB) and Yingli Energy (YGE) might see action today ahead of earnings, Monday before market.

The banks will be in focus after the Senate approved a a Financial Reform package that is likely to result in the largest overall of the banking system since the 1930s. Key provisions, like derivatives trading at banks, will be hashed out later when Senate and House versions of the bill are reconciled.

Unofficial numbers show 16.6 mln puts and 12.3 mln calls traded across the options exchanges. When the final numbers are tallied, volume today could potentially surpass the record 30.8 million on traded on May 6. Meanwhile, the CBOE Volatility Index (.VIX) rallied 10.55 to 45.87 to tally its third 30+ percent gain so far in 2010 (4/27 and 5/6 were the two others.)

Some less actively traded names seeing bullish order flow: Tessera Tech (TSRA), Felco Lodging Trust (FCH), Proshares Short Dow30 (DOG) Bearish order flow: CVB Financial (CVBF), Rockwell Automation (ROK), Autonation (AN) Post-Earnings: Gamestop (GME), Staples (SPLS) Pre-Earnings: Dell Computer (DELL), Marvell Tech (MRVL), Brocade (BRCD), Sears Holding (SHLD), Salesforce.com (CRM) Ex-div.: Hershey’s (HSY)