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

VirnetX Holding (VHC), a Scotts Valley, CA software developer for communication over the Internet, is up $1.12 to $20.41 and is in the midst of an impressive 8-day 63.7 percent winning streak. Options are actively traded today as well. April 20 puts, which are 41 cents out-of-the-money and have open interest of 291, are the most actives. 3,470 traded (75 percent Ask). April 19 puts, April 20 calls, April 21 calls and April 21 puts are seeing brisk trading as well. VHC was the subject of a bullish article on Seeking Alpha yesterday, which noted, among other things, “VirnetX is now on the brink of becoming a key technology licensing company” and “it is worth billions”. Some of today’s put buyers might be taking the opposing view or perhaps buying puts to protect recent gains in VHC shares.

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

Mosaic (MOS) is up 66 cents to $79.51 and options order flow is turning bullish ahead of earnings. June 85 and 100 calls are the most actives, with more than 4,000 traded in both contracts. The top trades surfaced early and included a multi-exchange sweep of 1,522 June 85 calls at the $3.80 asking price. At about the same time, the June 85 – 100 call spread was apparently bought at $2.99, 775X. A total of 19,000 calls and 4,775 puts have now traded, as some investors seem to be expecting upbeat earnings news when Mosaic releases its results after the closing bell today.

Cephalon shares will open nearly $20 higher on VRX deal news, and while call volume was heavy yesterday, most of it appears to have been initiated by sellers who will realize significant losses in the next few minutes. Most active were the Aug 70 calls, with several thousand sold by a customer in the 50-55 cent range to open.

A123 Systems (AONE) is down and implied volatility is up after the Watertown, MA maker of rechargeable lithium-ion batteries announced plans for 18 million stock offering and a $125 million in convertible notes. Shares are down 96 cents to $6.86 on the news and trading is brisk in the Apr and May 7 puts, which have traded 5360 and 3480 contracts, respectively. Looks like a mix of buyers and sellers driving the flow. Meanwhile, implied volatility is about 28 percent to 63.

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

iStar Financial, a NY based REIT, shares are up 16c to $9.16 and sees notable trade in the July $10/$13 call which trade 10,000x in what looks like a closing sale for a 40c net credit. The strikes each have OI of 60,000 contracts in positions from positions that were established in the beginning of the month (see market color 2/28 & 3/1) when the stock was trading around $9.60-$9.80 and the spread was being purchased for $1.00 net debit. That buying was being done at the tail end of a move that saw the shares more than doubling from around $3.60 in November to a peak of $10.40 in early March.