A very slow trading day is winding down with the Dow Jones Industrial Average up 10 points on the day, 574 points for the month, and 1,152 (11 percent) on the year.

4.6 million calls and 3.3 million puts traded today, or 63 percent the recent average daily. Interestingly, the CBOE Volatility Index (.VIX) is up .38 to 17.90. The actual 20-day volatility of the S&P 500 Index (.SPX) has plummeted to only 6 percent. Therefore, VIX, which tracks expected volatility priced into SPX options, is implying a major jump (almost 3X) in actual volatility during the first few weeks of 2011. We shall see.

That’s a Wrap.

To all of our friends, fans, readers and subscribers, have a wonderful, safe, and HAPPY NEW YEAR!

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

After a two-day 54 percent surge, Qiao Xing Universal Resources (XING) shares are giving back 12 cents to $2.73 and options volume is 3X the average daily. 3,200 calls and 1,005 puts traded so far. Jan 2.5 calls continue to see interest, with 950 traded. Jan 2.5 puts are also seeing interest. 870 changed hands. Implied volatility is down 3 percent, but at 128.5 remains elevated and reflects expectations that the volatility in XING will continue into 2011. Actual (30-day) is 126.5 percent.

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

Abbott Labs (ABT) adds 43 cents to $48 and 3,572 Jan 48 calls have traded so far. It includes a lot of 500 at 63 cents on ISE and is an opening customer buyer, according to ISEE data. The stock was listed on a Seeking Alpha story today titled “Ten Stocks Expected to Grow Their Dividends in 2011.” 5,850 calls and 2,350 puts traded in the name.

Imax shares are rockin the new years eve, spiking more than $5 at the open to a new 52wk high of $32.30 on an unconfirmed Sony deal. Shares have since slid back to the $30 range, and option volume is 6x normal with a total of 3600 Jan 35 calls leading the most actives. Vols are up nearly 20 points to about 60% at the Jan 30 strike. The extremely ‘lucky’customer who bought a block of 5000 March 30 calls bought on Tuesday 12/28 for 70cents vs $25.04 (try command IMAX -3 to view) is currently up about $600k.

Market Vectors Rare Earth Strategic Metals ETF (REMX), which has as its top holdings Lynas Corp., Iluka Resources, and Thompson Creek, touched a new 52-week high today and is up 74 cents to $24.60. Shares have now rallied 15 percent since news Tuesday that China cut quotas on rare earth materials. The move rekindled investor interest in the rare earth names and REMX is rallying. Meanwhile, today’s options volume in the ETF includes 3,920 calls and 450 puts, or 13X the average daily. A lot of the activity is in the January calls with strikes ranging from 22 to 26. April 22 calls are the most actives. 1,164 traded. Implied volatility is up 7 percent to 45.5 and has increased by about 36 percent on the week.