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

MIPS Technologies (MIPS) saw a morning jump on heavy volume and is now up 6.9 percent to $15.69. Options action is heating up as well, with 7,550 calls and 730 puts traded. Jan 15 calls, which are now 69 cents in-the-money, are the most actives. 2,890 traded (68 percent Ask). Jan 17.5 and April 15 calls are busy as well. Implied volatility is up 2 percent to 53, with no news to explain the rally in the shares or bullish flow in the options of the Santa Clara, CA chipmaker today.

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

BJ’s Wholesale (BJ) rallied 7.1 percent yesterday after the New York Post reported that Leonard Green and Partners might make a hostile bid for the retailer if there isn’t an auction for the company during the next few weeks. Shares are up another $1.23 to $48.85 today and 5,500 call options have traded in BJ. The volume represents 7X the typical activity and 10X the day’s put volume. Jan 50 calls are the most actives. 2,143 traded and 96 percent trading at the Ask. Looks like players are buying Jan 52.5 and Mar 50 calls as well.

MBIA (MBI) with a second day of relative strength and increasing call volume. Shares are up 68 cents to $11.04 after a filing with a Manhattan court released yesterday indicated that JP Morgan and Barclay’s have dropped their opposition to MBIA’s plan to restructure its business — Reuters. Shares saw a spike on heavy volume yesterday morning (see 12/29 color) and are now up 16 percent since Tuesday. MBI options are busy for a second day as well. 88,000 calls and 8,950 puts traded in the name yesterday. 18,000 calls and 2,180 puts so far today. The top trade is 3,974 Jan $11 calls at 70 cents and might be a liquidating sale as shares rally above the $11 strike price. 9,970 traded (70 percent Bid). Jan 12.5, Jan 14, and Feb 11 calls are seeing interest as well. Implied volatility is up 9 percent to 85.5.

Speculative frenzy continues and has now infected Qiao Xing Universal Resources (XING), a Huizhou City minerals company. Shares are up 54 cents to $2.39 and today’s options volume is 8,000 calls and 300 puts. Jan and Jun 25 calls are the most actives, with more than 3,000 traded in each and three quarters trading at the ask. Players are snapping up bullish positions, possibly in reaction to news that the company has posted pictures of one of its lead-zinc-copper mines. The company is also launching a new web site in early-January. It will replace the existing website that currently has the pictures in question (which must have been really nice pics because the stock is up almost 30 percent). Implied volatility is up 1 percent to 86.

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

Sears Holdings (SHLD) is up $4.46 to $74.48 and the best gainer in the NASDAQ 100 on 3.5X the average daily options volume. No news on the ticker. It has high short interest. Yesterday, the retailer announced plans to launch on online service that allows Kmart and Sears customers to download entertainment online. The strength is perhaps a delayed reaction to the news, and fueled by short-covering. Meanwhile, in options action, 9,850 calls and 5,400 puts traded. Jan 75, 80 and 85 calls are the most actives, then followed by Jan 67.5 and 72.5 puts. Implied volatility is up 18 percent to 46. Note that peer BJ is also seeing relative strength Wednesday.