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

Tiffany (TIF) shares surged $6.20 to $76.24 after the company reported better-than-expected first quarter earnings and raised guidance for the 2012 fiscal year. Options action is picking up as well, with 12,000 calls and 15,000 puts traded in the New York-based jeweler so far. The volume represents 9X the average daily. Jun 75 calls, which are now $1.24 in-the-money, are the most actives. 2,650 traded against open interest of 2,074. The top options trades are on the put side of the options chain after an investor initiated a Jun 70 – 75 put spread at $1.12, 540X on ISE. Looks like a bearish short-term play or perhaps to hedge some of today’s gains in the stock.

El Paso (EP), which prior to today saw an 11.2 percent two-day rally on news it was splitting into two companies, is off 43 cents to $20.68. In early options action, one investor takes a position in the July 20 buy-write while buying Jul 17 puts, 6000X. Looks like an opening collar with a potential of 2.4 percent gain if shares hold above $20 through the July expiration. Shares were bought at $20.80 and $1.26 collected on the risk-reversal.

Impressive spread in the SPYders, as shares add 88 cents to $132.88 late-Wednesday. Looks like the Jul 112 – 119 – 126 put butterfly spread is bought at 55 cents, 48800X. This spread is possibly a short-term hedge, as it makes its best profits if SPY falls to $119 through the July expiration, which represents a 10.4 percent decline in the S&P 500 over the next 51 days.

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

Tesla Motors (TSLA) gained $1.38 to $28.10 and options volume is approaching 5X the average daily on news the company’s CEO will buy 1.5 million shares and a Daimler affiliate will purchase 644K. The stock buys are part of a follow-on to a secondary offering of common stock. In options action, 16,000 calls and 3,250 puts have traded on the San Carlos, CA electric vehicle maker. June 30 calls are the most actives. Volume is approaching 8,000 and 61 percent traded at the ask. July 28 and June 30 calls are seeing brisk trading as well. Upside call buying has implied vols increasing by about 20 percent to 60.

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

AIG is off $1.04 to $28.42 and falling to new 52-week lows today after pricing a public offering at $29 per share. The top options trade so far today is an 11000 contract block of Jun 35 puts at $6.70, which was sold along with stock and probably a closing of deep OTM puts. 49,000 calls and 37,000 puts now traded in AIG.