CBOE Volatility Index (.VIX) is down 2.24 to 19.08, but thanks to the big gap Tuesday morning, is up 2.51 points on the week. 175000 calls and 117000 puts traded on the volatility index By way of comparison, 425000 calls and 285000 puts traded in the VIX pit Wednesday when it rallied to 23.22. VIX is now nearly 18 percent Wednesday’s peak levels. Still, at 19.08, the index seems to be price in a fare amount of macro-economic risk. The 60-day statistical volatility of the S&P is just 10.6 percent. The fourth quarter earnings have now largely been discounted and the S&P 500 trades at 13.5X forward earnings. Interest rates remain low and economic data is taking a backseat to events overseas. The main concern appears to be earnings risk from global macroeconomic uncertainties — China, Europe Debt Crisis and now spiking crude oil prices — and this might explain why VIX is 80 percent higher than SPX 60-day actual volatility.

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

CBOE Holdings (CBOE) is trading up $1.83 to $29.35 and call activity is heating up in the owner of the Chicago Board Options Exchange [CBOE] Friday. March 30 calls are the most actives. 2,845 traded (73 percent Ask) vs. 2,746 in open interest. Similar action is being seen in the Mar 28, 29 and 32 calls. Seems that buyers are dominating the action. 12000 calls traded so far. Implied volatility is up 8 percent to 41. CBOE rallied around earnings earlier this month and also saw a lift on takeover speculation last week after Deutsche Boerse made a move to acquire NYSE-Euronext. The theory goes that NASDAQ might now seek to increase its market share by purchasing CBOE, operator of the oldest and one of the largest exchange.

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

The top equity options trade so far today is in Ford (F). It’s a block of 11,000 Jun 20 calls at 11 cents per contract. The trade coincided with a 5,500-contract block of Jun 17 calls at 48 cents. Both traded on the PHLX and looks like a (1X2) at 26 cents. Separately, a March 15 – 16 (1X2) call ratio spread traded at 17 cents, 3500X on ISE, where data indicate the March 15 leg was bought-to-open. Both spreads appear to be bullish plays on the automaker, as the stock tries to stabilize from 21.8 percent swoon suffered since earnings were reported on 1/28. Ford is up 22 cents to $14.92 today.

Tenet Healthcare (THC) adds 7 cents to $7.04 after reporting a quarterly profit of 14 cents per share, which was 6 cents better than Street views. Two blocks of 2,550 May 7 calls traded at 40 and 45 cents in early action. The market was 30 to 45 cents and looks like 5,300 contracts were bought total. Probably tied to 330K shares at $7.03 and possibly closing. Open interest in the May 7 calls is 26,821 and the second biggest open position in THC behind March 7 call options.