Microsoft (MSFT) implied volatility is easing and options are heavily traded Friday. Shares are down 4.4 percent to $25.53 and easily the Dow’s biggest loser after the company posted EPS numbers that topped Street views, but profit margins were short of expectations. 359,000 calls and 212,000 puts traded in the software giant so far. The Weekly 26 calls, which saw heavy trading yesterday ahead of the news, are the most actives. Some investors are probably scrambling to salvage time value. The contract is now 1.8 percent out-of-the-money with less than an hour of life remaining. 67,000 contracts traded. May 26 puts, May 26 calls, May 25 puts and May 27 calls are seeing brisk trading as well, as investors jockey for position ahead of Microsoft’s next short-term move. May options expire in three weeks.

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

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

Cheniere Energy shares popped 4% to an intraday high of $9.30 and option volume is 3x the daily average being driven by large blocks in longer dated calls. The December $11 call saw a 5,000 contract block trade at the $1.80 asking price and with no prior open interest this looks like an opening purchase. The September $12 call saw a 4,100 block trade at the $1.00 asking price but this could be closing or tied to stock. There is no apparent news. The liquefied natural gas distributor is slated to report earnings early-May, but nothing yet on the company’s event calendar.

Eastman Kodak (EK), which lost 10 percent on earnings news yesterday, is up 3 cents to $2.88. Early options trades in include a May – Oct 3.5 call spread, bought at 34 cents on AMEX, 5000X. It probably rolls a position out a few months. EK May 3.5 calls have open interest of roughly 20K.

Microsoft (MSFT) is seeing brisk trading ahead of earnings. Shares are up 28 cents to $26.66 and 426,000 options have traded in the software giant so far today. The volume consists of 291,000 calls and 135,000 puts. It seems clear that investors are leaning on the bullish side of the trade ahead of the report. May 27 calls are 1.2 percent OTM and have traded 61,000 contracts. The Weekly $27 calls, which come off the board tomorrow, are the next most actives. 47,690 contracts have changed hands. Open interest is 9,581 and the option has a delta of .40. The Weekly and May 26 calls are seeing heavy trading as well. When earnings are released after the closing bell today, analysts expect Microsoft to post a quarterly profit of 56 cents per share on $16.2 billion in revenues. Implied volatility in Microsoft options is up 3.5 percent to 25 ahead of the results.

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