MEMC (WFR) loses 4 cents to $12.87 and the Apr – May 13 call spread is seeing interest in early trading Monday. 300 traded at 49 cents on ISE. Looks buyer-initiated. Volume in both contracts now exceeds 3000 and the spread trading might be rolling of a bullish position, out from April to May. The April 13 calls are 13 cents out-of-the-money and expire in 18 days. Open interest is 9K and the third largest position in MEMC.

Yahoo (YHOO) adds 14 cents to $16.97 and the Apr – July 18 call spread is apparently bought at 73 cents, 23000X this morning on the ISE. It might be a roll (closing April and opening July) or a closing a spread altogether. Open interest in the April 18 calls is 125,271 contracts and the biggest position in Yahoo today. In any case, today’s spread trader might be selling the position on the view that it’s becoming less likely that the stock will move beyond $18 through the April expiration. The probability of that happening is 27 percent. The contract is 6.1 percent out-of-the-money with three weeks of life remaining. Market is 23 to 25 cents.

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

Bristol Myers (BMY) is up $1.13 to $27.56 and options are heavily traded today after the FDA approved ipilimumab for melanoma. 82,000 calls and 25,000 puts traded so far. The top trade surfaced at noon when 1294 April 27 puts traded on the 94-cent bid and might be an opening put writer on the news. The next biggest trade is a 955-block of April 27 calls on the 40-cent bid, which might be a liquidating trade. April 27 calls have now traded more than 20,000 contracts vs. 25,875 in open interest. April 26 and 28 call options are the next most actives. Implied volatility has eased 5 percent to 20.5.

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

The biggest options trade so far today is in the SPYders (SPY) after an investor sold 65000 April 125 puts at 51 cents each. They also sold 20000 May 125 puts at $1.61. Shares are up 83 cents to $131.73 and the same investor bought 36000 July 125 puts at $3.31. July puts look opening and the action is possibly rolling of a hedge, or closing out the April and May 125s to open a smaller position in July 125s.

44000 calls traded in Eastman Kodak (EK) already today. Typical volume in the first hour is less than 900 contracts. Shares are up 33 cents to $3.46, as investors brace for an ITC review of patent case involving Eastman Kodak vs. Apple and RIM. If successful, Kodak could receive more than $1 billion in royalty payments, reports Bloomberg, citing Chief Executive Antonio Perez. The decision is expected this afternoon. There seems to be some optimism building, EK is up and volume in the April 4 calls is approaching 11000 (64 percent Ask). April 3.5, July 4, and July 5 calls are seeing brisk trading as well.