Pulte Homes (PHM) adds four cents to $8.76 and Nov 9 calls are trading on the 48-cent bid this morning (bid-ask was 48 to 53 cents). Looks like opening call writers, with more than 10,100 traded (94 percent bid) and existing open interest of 683 contract. Goldman Sachs upgraded PHM to Neutral from Sell this morning, but shares face resistance around $8.90 — a level tested multiple times throughout the month of September.

AMR is off a nickel to $6.40 and 12,500 Nov 7 calls were sold at 32 cents each. This might liquidate a position from yesterday after news Southwest is buying Air Tran sparked a rally in the airlines and open interest in AMR Nov 7 calls increased by 31.3K to 45.4K, currently the largest position in the name.

Monsanto (MON) with relative weakness and increasing put volume Monday. Shares are down $1.91 to $53.47 and near session lows. It’s been a steady descent during today’s trading. Meanwhile, the top two options trades are blocks of 3,987 and 3,192 Oct 55 puts at $2.53 and $2.20 this morning on ISE. Both are opening customer buyers, according to ISEE data. Good timing because the contract is now bid at $2.91. 12.25K Oct 55 puts now traded. Oct 42.5 and 52.5 puts are seeing interest as well. Implied volatility is up about 9 percent to 37, but with no obvious headlines to explain today’s bearish action in MON Monday.

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

DryShips (DRYS) adds 33 cents to $4.46 and 23K calls traded on the ticker through midday after Morgan Stanley upgraded shares to Equal Weight from Under Weight. October 5 calls are the most actives. 6,900 traded (88 percent Ask). Looks like buyers are dominating the action in the Oct 4, Nov 5, and Dec 5 calls as well. Implied volatility is up 13 percent to 51.5 (compared to a 52-week high and low of 88 and 42.)

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

MGM adds 36 cents to $11.04 on news it has filed to list shares on the Hong Kong Exchange. Early options trades include a Mar 12 – 14 stupid call spread, 2500X. The strategist paid $1.93 to buy both the 12s and 14s. About 15K calls and 1685 puts traded in MGM so far.