CBOE Volatiity Index (.VIX) adds .04 top 18.03 and has added 16.6 percent in an abbreviated week of trading. VIX fully recovered the 9.8 percent loss suffered the week before and has been heading higher ahead of some event risk next week, which includes another flood of earnings reports, Consumer Confidence, New Homes Sales, Durable Goods, and GDP Data, as well as an FOMC meeting on rates Tuesday.

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

Pfizer (PFE) adds a penny to $18.25 and 18,500 Jan 15 calls was sold at $3.20 per contract. It traded at about 10:00 oh PHLX. Then, about 20 minutes later, 16,000 January 2013 $25 calls were bought at 48 cents each. It might be the same investor, closing a position in the ITM Jan 15 calls before they expire, then opening a new position in deep out-of-the-money Jan 2013 call options.

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

The top options trade so far today is a block of 65,162 Citi (C) Jan12 $7.5 calls at 12 cents. Hearing it was sold and possibly closing, as open interest is 2.07 million contracts. Citi has added 6 cents to $4.86 Friday, but down 5.3 percent since earnings were reported Monday. Consequently, the 2012 $7.5 calls are 54.3 percent out-of-the-money with one year of life remaining.

General Electric adds $1.03 to $19.46 and is leading the Dow Jones Industrial Average to a 58-point gain in the first hour of trading Friday. GE shares rallied at the open after the company reported a 36-cent per share quarterly profit on $41.38 billion in revenues. Results easily topped analyst estimates of 32 cents on $39.9 billion. Trading in the options market is brisk as well, with 206,000 calls and 45,000 puts traded in the name so far. A lot of the action is in the January and closing trades ahead of tomorrow’s options expiration. However, the top trade is a Feb – March 19 call spread, bought at 15 cents, 4000X, and probably rolls a bullish position in in-the-money calls from one month to the next.

66000 calls and 33000 puts traded in Visa (V). Shares, which traded as low as $67.51 early, rallied in the second half of trading and are up $2.16 to $71.28. The run higher is apparently related to developments in debit card interchange rate regulation. In options action, players are trying to swipe short-term profits in the Jan 70 and 75 calls, which have traded 15600 an d 10700, respectively. Feb 65 puts, 67.5 puts and 75 calls are seeing increasing action as well. Implied volatility in Visa is 10 percent to 32. Earnings slated for Feb 2 (after market).

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