International Flavor and Fragrance shares are off 50c to $62.80 and sees notable trade as the June $65 calls trades a 13,000 contract block at the 30c bid price in what looks like an opening sale.

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

EMC shares are off 65c to $27.40 and option volume is 2x the daily average being driven by trading in the LEAPs. Notable trade in Jan 2013 sees the $30 call and $25 put each trade 5,000 contracts in what looks like sale of the strangle for a $5.05 net credit. This could have been done against the Jan 2012s in which the $28 line as both puts and calls traded a 2,500 contract block in what looks like an opening purchase of the straddle for a $5.15 net debit except the transaction were about 20 minutes apart and done on different exchanges.

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

BofA (BAC) loses 16 cents to $11.42 and the Aug 12 – 13 call spread is bought on the bank at 24 cents, 20000X. Open interest is sufficient to cover in both contracts. So, it might be closing or a roll. Or, it might be a bullish play targeting a move to $13 and beyond in BAC shares through the August expiration.

CBOE Volatility Index (.VIX) hit a morning high of 20.03 and its best levels in two months early Monday. Implied volatility is higher marketwide as anxiety levels are elevated after S&P downgraded Italy’s credit rating to negative from stable. The move adds to recent worries that the European Debt Crisis is still worsening. Stock benchmarks are sharply lower across the Euro-zone and volatility is spilling over onto Wall Street. VIX is now up 2.17, or 12.4 percent, to 19.60 and early trades in the volatility index include a1740-contract block of VIX Jul 22.5 calls at the 2.20 ask price. 12,000 calls and 3,000 puts traded in the first ten minutes of trading.