Bullish pre-earnings action in Oclaro (OCLR). Shares of the San Jose, CA optical component maker are up 4 cents to $11.80 and 6,750 calls traded in the name, which is 12X the typical volume and 10X the day’s put activity. The top trade is 743-contract lot of May 12.5 calls at the 60-cent asking price. The next is 613 May 12.5 calls at 60 cents. Both are opening buyers, according to ISEE data. 4,325 now traded. Jun 12.5 and Jul 17.5 calls are seeing interest as well. The company is due to release results after the closing bell. OCLR tumbled 18.6 percent on March 9 after peer Finisar posted disappointing earnings. It continued falling, losing another 24.6 percent through April 19, but is on a six-day 15.7 percent winning streak since that time.

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

Sprint (S) shares hit a high of $5.10 this morning and are up 22 cents to $5.01 after the company reported a quarterly loss of 15 cents per share, which was not as bad as the 22-cent loss that was expected. Revenues topped expectations. Shares are up and one investor seized the strength to sell 29,000 Aug 5.5 calls at 24 cents per contract. It might be a giant overwrite on the strength. A block of 1.37 million shares traded at $4.96 within 20 minutes of the call write. Aug 5.5 calls are 9.8 percent out-of-the-money with a delta of .37. 30,980 now traded vs. 35,266 in open interest. May 5 and 6 calls are seeing interest as well, with 15,640 and 5,310 traded, respectively, and more than 80 percent traded on the bid. Implied volatility is down 18 percent to 35.

Officemax (OMX) sees early options action. Shares are down $1.94 to $10.55 after the company reported earnings of 13 cents per share, which was 14 cents less than Street estimates. The top options trade is a 1335-contract block of Aug 9 puts at the 35-cent asking price. 5,546 vs. 1,144 in open interest. With 85 percent of the volume trading at the ask, it appears that buyers are taking positions and bracing for further losses in OMX in the months ahead. May $11 calls, wihich have traded 1267 contracts (84 percent Ask), are possibly seeing opening buyers as well.

The beat-down in Longtop Financial (LFT) continues. Shares sank 12.9 percent yesterday and are down another 14.2 percent to $19.08 today. The catalyst for yesterday’s decline was a cautionary research note from Citron Research. However, the recent decline dates back to the beginning of the month. Shares are down 40 percent month-to-date. LFT options remain heavily traded as well, with 21,000 calls and 25,000 puts on the tape so far today. The action is scattered in reaction to the big move in the stock. May 20 puts and calls are the most actives. Meanwhile, implied volatility is up 22 percent to 128 and new records for the Hong Kong-based financial software developer.

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

Home Depot shares are up 10c to $37.30 and notable trade in the Jan 2013 calls as the $35 strike is purchased 3,000x and the $45 call sold 6,000. This 1×2 was done for a $2.40 net debit and appears to be opening transaction. It seems a little long dated for a ratio spread but even with the 2008-2009 swoon the stock has essentially traded between $22-$40 for the past 8 years with median price of $33 a share.

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