Pfizer (PFE) loses 17 cents to $16.52 and is one of 28 Dow stocks under water Friday morning (only MMM and CSCO are up). Meanwhile, in options action, PFE Jan calls are seeing interest. One of the top trades is 2094 Jan 17.5s at 18 cents on the ISE, and an opening customer buyer, according to ISEE data. 5200 now traded (98 percent Ask). Another 6200 Jan 20s changed hands (72 percent Ask). No news on the pharmaceutical maker today. Earnings were reported on 11/2. Shares are down 5.3 percent since that time.

Amazon.com (AMZN) touched a new 52-week high and is up $9.49 to $177.49. Meanwhile, options is running 2X the normal after Citigroup analysts said in a note today that AMZN is the “single best play for secular growth in online retail”. Earlier this week, Amazon.com unveiled a new app that allows shoppers to compare prices across brick and mortar retailers, and then buy the product instantaneously online if the best price exists at Amazon.com. Indeed, there seems to be some enthusiasm for the online retailer heading into Black Friday as the AMZN Weekly (11/26) 175 and 180 calls have both traded more than 10000X today. 90,000 calls and 60,000 puts now traded in AMZN. Implied volatility is flat at 35, compared to a 52-week high and low of 55 and 28.

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

Massive blocks of puts trade on a number of exchange-traded funds midday Wednesday. 113,934 Jan 19 puts traded at a penny on the Consumer Discretionary Fund (XLY), 113,882 Financial Select Sector (XLF) Jan 9 puts at a penny each, and 113,882 Industrials Select Sector Fund (XLI) Jan 19 puts, also at a penny per contract. Given that open interest is sufficient to cover in all three contracts, the action looks closing and offsetting positions opened in mid-August. For example, on August 11 of this year, 37,962 XLF Jan 9 puts traded on the 16-cent bid and on August 19, we observed a writer of 57,000 XLI Jan 19 puts at 32 cents per contract. These appear to be very well-timed plays because stocks are broadly higher since then and the S&P 500 has added nearly 14 percent since late-August. Now, this strategist seems willing to pay a penny per contract plus the transaction costs to offset the positions, perhaps looking to free up capital and or bank the profit now rather than deal with the risks associated with holding the positions through January 2011.

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

iStar Financial (SFI) adds 23 cents to $5.62 and 2000 July 6 calls were sold at $1.25 each. It was part of an opening buy-write and tied to stock at $5.61 (1.64 over), according to a source on the floor. Shares are up 63.8 percent since the company reported earnings on 10/28 and announced plans to repay $1 billion in debt.

EOG adds 30 cents to $88.99 and a block of 6,160 Jan 105 calls traded at 47 cents per contract when the market was 49 to 54 cents. Looks like a call sale and possibly closing. Open interest in the contract, which is 18 percent out-of-the-money, is 13,100 and the biggest position in the name. The Houston, TX natural gas producer reported earnings on 11/2. Shares tumbled 9.3 percent on the news.