*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.

MGM adds 13 cents to $13.62 and 27,000 calls traded on the casino-operator today, which is not unsual volume, but compares to put volume of 8,550 contracts. March 13 calls are the most actives. 4,900 traded and 82 percent of the volume at the Ask. Looks like some of the volume in March 14, March 15 and April 15s is being driven by upside call buyers. Implied volatility is up 2 percent to 47.5. Moody’s says today that it is seeing signs of modest recovery in the Las Vegas strip area.

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

Salix Pharmaceuticals (SLXP) is down 22.3 percent to $32.21 and options volume is running 8.5X the average daily after the FDA decided the company’s Xifaxan (label expansion) is not ready for approval. March 37 puts are the most actives, as some players might be liquidating positions opened prior to the news (see 2/2 color). Mar 35 calls, Mar 35 puts, Mar 30 puts, April 40 calls and July 37 calls are seeing interest as well. Implied volatility is down 42 percent to 50.5.