Wal-mart (WMT) calls are seeing heavy pre-earnings action. 156,000 contracts traded so far, which is 9X the normal and 5.5X the day’s put volume. Shares are up 64 cents to $55.39 and today’s trades include a block of 47,430 March 57.5 calls at 23 cents each when the market was 21 to 23 cents. Another trade was a buyer of 10,000 March 27.5 calls at 29 cents. The March 57.5 – 60 call spread traded at 21 cents, 17400X. Consequently, volume in the Mar 57.5s is now approaching 85,000. Mar 55 and 60 calls are the next most actives. Implied volatility is up 6 percent to 18.5, as investors seem generally optimistic heading into the world’s largest retailer’s earnings, due Tuesday before the opening bell.

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

23,000 calls and 5,320 puts traded on Pan American Silver (PAAS). Shares have added $1.77 to $37.17 and the top trade: an opening customer buyer of 5,059 Mar 38 calls at $1.40 on ISE, according to ISEE data. 10,500 now traded. Implied volatility is up 9 percent to 48. It’s possibly a play on silver, which is up 70 cents to $32.27 today and now up more than 20 percent since January 25.

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

Options action is picking up in Medronic (MDT) ahead of the medical device maker’s earnings release. Shares are up 69 cents to $40.96 and today’s options volume of 13000 calls and 2500 puts is 2X the recent average daily volume. The top trade is a 1,210-contract block of May 41 calls at the $1.75 asking price. 2,843 now traded (98 percent ask) vs. 1,153 in open interest. Feb 40, Feb 41, Mar 41 calls are seeing interest as well. The Mar 40 is the most active put. Implied volatility is up 4 percent to 24.5 ahead of the results, due Tuesday morning, before market.

CBOE Volatility Index (.VIX), which slipped .13 to 16.59 Thursday, is up .06 to 16.55 expiration Friday morning. A noteworthy options trade in the volatility index yesterday afternoon was a Mar 21 – 30 (1X2) call ratio spread at 40 cents, 15000X. Looks like the spread was possibly repeated more than once Thursday. Open interest in the Mar 30s increased by 49,706 and 29,694 of new OI was created in the Mar 21s. The spread is a bullish play on the VIX and one that offers a max pay-off if the index settles at 30 at the March expiration, which is in 25 days for options on the VIX.