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

Harmony Gold continues to see impressive bullish price and option action as shares add another 2.6% to $14.60 this morning. Notably early option transaction in the August $15 call as 5,000 contracts trade at the offer. This could adding to position opened yesterday which also saw active buying in the May $15 and $16 calls as noted in 3/28 color.

Chinese Internet company SOHU is seeing relative strength and increasing options action Tuesday morning. Shares are up $4.59 to $87.70 and the call buying is scattered across a number of April, May and June calls with strikes ranging from 80 to 105. April 80 calls are the most actives. 919 traded including several lots at the $8 asking price. April and June 95 calls are the next most actives. No news on the stock. Other names in the space — BIDU, YOKU, NTES — are also seeing strength today.

Walter Investment Management (WAC), a Tampa, FL REIT and asset manager, is trading down $1.81 to $17.47 and implied volatility is up after the company announced plans to buy Green Tree for $1.07 billion. Walter Investment will take on $20 million in debt and issue 1.8 million shares. The deal is expected to close in the third quarter and WAC will no longer qualify as a REIT. The most active options are the September 20 calls. 3356 traded (64 percent at the Ask) vs. 204 in open interest. Meanwhile, Sep 17 and 18 puts are the next most actives and trading 55 percent on the bid. So, while the stock is reeling, the overall flow looks somewhat bullish. Implied volatility is up 35 percent to 27.

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

Citi (C) loses 4 cents to $4.42 and the top options trade in the bank today is a July 4.5 straddle sold at 49 cents, 16750X, which appears to be a bet that the stock will hold near these levels through July. Earnings will come into play on April 18 and the contracts will be adjusted due to a 10-for-1 reverse stock split, which will go take place on May 6. Today’s noteworthy trades in Citi also include July 4.5 – 5 call spreads, which have traded multiple times. 10000 bought at 16 cents.

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

Wells Fargo (WFC) loses 6 cents to $31.88 and a block of 18,693 Jan 35 calls trades at $2.03 this morning on ISE. The market was $2.03 to $2.07 and the trade might be a liquidating sale, as open interest is 73,761 and currently the biggest position in WFC. More than 20,000 now traded. The contract is 9.8 percent out-of-the-money with a delta of .40.