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

Microsoft (MSFT) gains 67 cents to $28 and is second best gainer in the Dow today behind Cisco. In Microsoft options action, an investor sold 10,000 Nov 26 puts at 94 cents per contract. Another block of 10,000 also traded at 94 cents. The put writes look opening and tied to shares (first block was tied to 660K at $27.70, second appears tied to 563K at $27.75). The Nov 26 put on MSFT is 7.1 percent OTM with a delta of -.30. Today’s put seller might be looking for the stock to hold above $26 through the Nov expiration, which is in 113 days. Shares moved up 1.6 percent on 7/22 after earnings were reported and have added an additional 47 cents since that time.

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

Clearwire (CLWR) is under pressure today and options on the communication equipment company are seeing brisk trading after Sprint signed a deal with LightSquared, which possibly puts in jeopardy Sprint’s partnership with Clearwire, which needs additional funding to build out its network. CLWR touched new 52-week low on the news and is down 52 cents to $2.25. Early options trades in Clearwire included a Dec 1 – 3 (2X1) put ratio spread at 70 cents, 6000X on ISE. It might roll a position down in strikes, and from the in-the-money $3 puts to out-of-the-money $1 puts. Separately, an investor sold 2500 Sep 3 puts at 86 cents each, which might be a closing trade. 14,000 calls and 34,000 puts traded in CLWR so far. Typical volume for mid-morning is about 1,100 contracts. Meanwhile, implied volatility in Clearwire has jumped another 24 percent and is elevated at 150. Earnings will come into play on the afternoon of Aug 3.

Royal Caribbean Cruises (RCL) loses $2.95 to $32.81 after the company reported in-line second quarter earnings and guided estimates lower for the full year. 6,454 puts and 1,860 calls traded in the name so far. August 30 puts, which are 8.6 percent OTM and expiring in 22 days, are the most actives. 2,243 traded (91 percent Ask) against 543 in open interest. Similar action in the August 31 puts. Aug 34 and Sep 32 puts are seeing interest as well. It looks like downside put buyers are driving most of the flow and bracing for additional weakness in RCL shares in the short-term.

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

Ensco (ESV), an oil and gas driller, is up 26 cents to $52.58 after Morgan Stanley upgraded the stock to Overweight from Equal Weight today. The firm raised their price target to $80 from $75. 11,000 calls now traded in the name, which is about 10X the day’s put volume. Typical volume in ESV through midday is about 1,800 contracts. The action includes a multi-exchange sweep of 7,000 Aug 52.5 calls at $1.60, which is an opening buyer, according to ISEE data. 8,200 now traded ahead of an Aug 8 (after market) earnings report.

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