CBOE Volatility Index (.VIX) is up 1.53 to 24.04 and session highs heading into the closing bell. There doesn’t seem to be a specific catalyst for the selling pressure this afternoon. The Dow is down 90 points led by Disney (DIS), GE and BofA (BAC). Yesterday saw an uptick in risk aversion as well, with stocks lower and safe havens like gold and bonds moving higher. Some of the focus has shifted back to Europe where equity markets and the euro faltered on disappointing economic news Thursday. Euro is testing 1.33, down from 1.339 late yesterday. In the US, durable goods and new home sales come into focus Friday morning.

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

Corinthian Colleges (COCO) is rallying and calls are seeing brisk trading heading into a Senate hearing related to federal investments into for-profit schools. Education companies are potentially facing new regulations amid concerns students are graduating with few job prospects, but heavy debt loads. It seems that some investors expect a positive outcome from the hearings, as COCO is up 77 cents to $6.94 and options action is brisk. About 16K calls and 495 puts traded in the name. Oct 7 calls are the most actives. 7600 traded (71 percent ask). Oct 8, Nov 7.5 and Nov 9 calls are busy as well. Implied volatility is up about 19 percent to 92.5. CECO, DV, STRA, ESI, and APOL also seeing relative strength.

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

Microsoft (MSFT) loses 7 cents to $24.54 and a noteworthy recent trade is a Oct – Jan 25 call spread, sold at 80 cents, 42000X on CBOE. If opening, this reverse time spread is a bullish short-term play on the software maker. However, since considerable open interest exists in both contracts, the spread might be closing or rolling activity. It’s difficult to say, but tomorrow morning’s open interest numbers might shed some light.

BofA (BAC) loses 18 cents to $13.28 and a block of 20.3K Nov 16 calls trades at the 12-cent ask price. Looks buyer initiated. 35.3K now traded, making it this morning’s most actively traded equity options contract. BofA/Merill announced the formation of a Global Futures and Derivatives Clearing Services (GFDCS) this morning. Shares are down on the news and have not performed well over the past few days, down 3.7 pecent since Monday.

Biogen Idec (BIIB) has seen a day of brisk trading and implied volatility is higher after US regulators backed Novartis’ MS drug Gilenya, which is expected to take market share from Biogen’s Tysabri. BIIB hit a low of $54.48 this morning and was recently down $3.15 to $55.08. Options volume is 13X the average daily, with most of the bigger trades surfacing early in morning trading. 17K puts and 7,050 calls traded. Some investors appear to be bracing for additional downside in the weeks ahead, as Oct 55 and 52 puts are the most actives and implied volatility is up 7 percent to 32.

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