Coca Cola (KO) loses 17 cents to $66.53 and the KO Jan 65 – 70 call spread is sold at $2.31, 10000X. While open interest [OI] is sufficient to cover in both contracts, this might roll a position up in strikes. Jan 65 calls on Coke are now 2.4 percent in-the-money and have OI of 51,454 contracts, which is the largest position in the name. An investor might be closing out a position in those calls after KO gained 8 percent off March 16 lows.

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

Apple Computer (AAPL) expiring Weekly 335 puts and calls are seeing active trading heading into the final two hours. Shares have been in a narrow range today between $334.31 and $337.54. AAPL is now up $1.47 to $336.47 and the market on the weekly 335 straddle is $1.55 to $1.60. Both contracts have now traded more than 16,000. OTM Weeekly 340 calls and 330 puts are seeing action as well.

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

Trading is brisk in Marvell Technology (MRVL) today after the integrated circuit maker reported disappointing first quarter results, but in a conference call, guided estimates higher for the second quarter. Shares rallied $1.54 to $16.10. Meanwhile, 75,000 calls and 13,000 puts traded in the name. June 15 calls, which are now $1.10 ITM, are the most actives. 18,560 traded and, with 64 percent hitting on the bid and 41K in open interest (biggest position in MRVL), some investors are likely liquidating positions on the news. June 16, Jun 17, Jul 16 and Aug 17 calls are actively traded as well.

MedcoHealth Solutions (MHS) shares tumbled $7 to $57.44 on news CVS has won a Regence Blue Cross/Blue Shield Government-wide pharmacy benefits contract. Early options trades in MHS include a seller of 7,000 July 65 calls at 25 cents each, which might be a liquidating trade in the wake of the news. 11,340 now traded against 57,499 in open interest (the largest position in the name). Jul 55 puts, Jul 57.5 puts, July 60 calls and Oct 50 puts are active and trading predominantly on the bid as well. Implied vols jumped 15 percent to 28.

All eyes are on today’s hot new option listing, LinkedIn. Results of yesterday’s prelisting survey show that OptionAlert users who responded expect atm IV in the 50-60% range and vols to be lower a month from now. Expected discount to parity (front term reversal) is $1, and the avg volume estimate for today is a healthy 46K calls and 89K puts.