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

Wells Fargo (WFC) loses $1.20 to $28.87 post-earnings and one investor sells 9,000 Jan 20 – 30 put spreads to buy 9,000 Jan 35 calls, collecting $2.40 on the package. It likely closes a position opened in late-Jan when the same three-way traded at 25 cents (credit). The original position was tied to 588K shares at $32.35 (see 1/27 color).

CBOE Volatility Index (.VIX) hit a low of 14.30 shortly after the opening bell and is down 1.15 to 14.68. A round of positive earnings reports has the S&P 500 up 18 points and the volatility index is falling to its lowest levels since the summer of 2007. VIX April options expire today and the settlement value is 14.86. The market’s “fear gauge” is now a far cry (-53.1 percent) from the multi-month high of 31.28 set a little more than one month ago, on March 16. On that day, 608,514 calls and 208,889 puts traded on the volatility index. 25,000 calls and 20,000 puts traded in the VIX pit so far today.

Blackboard (BBBB) is up $12.74 to $49.90 on news it has hired Barclay’s to explore a possible buyout. Yesterday, 1,267 calls traded in the DC-based multimedia and graphics software company. Typical volume is 56 contracts. Monday’s action included a 1,000-contract block of May 40 calls at 40 cents on the ISE, which was an opening buyer, according to ISEE data. 1,281 May 40 calls traded total and open interest increased by 1,233 to 1,485, which is the largest position in BBBB. The contract is now bid at $9.70.

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

Ecolabs, a MN based food inspection and sanitation firm, shares are up 16c to $50.88 and sees notable activity as the May $50/$45 put spread which traded 19,000 times at 75c in what looks like an opening purchase. This would create far and away the largest positions as no other strike, put or call, in any month has open interest greater than 500 contracts. This is potentially tied to stock ad could be positioning ahead of the April 26th earnings report.

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

Iron Mountain shares popped to a new 52-week high of $35.45 on the opening but have since come off and are trading around $34.40 a share. Option volume is 6x the daily average being driven by a large transaction in the July $27.50/ $32.50 strangle as each traded 6,700 contracts in what should be opening transactions as both strikes had less the 1,000 contracts of prior open interest. Shares of the document storage company have gained some 30% in the past month mostly do the growing prospects that it will sell the its digital part of the business and convert to a REIT structure prompted by activist investors. This morning the company reported it will give a board seat to hedge fund Elliot Management which should help avoid a proxy fight. The company is set to report earnings April 28th