Intel (INTC) loses 34 cents to $21.90 and is one of 29 Dow stocks under water today. Only Traveler’s (TRV) is holding a modest gain within the industrial average. The top options trades in the chipmaker today are a Sep 21 – 22 strangle at $1.20, 44000X on ISE. The market was $1.19 to $1.22 at the time and ISE data indicate the position was crossed from B/D to B/D. The strangle was also tied to 660K shares at $22.02 and looks opening. A seller might have initiated the trade. If so, it’s not necessarily a bullish or bearish play, but a bet that Intel shares will hold in a range between $21 and $22 through the September expiration, which is in 46 days.

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

GM is down 57 cents to $27.50 after the automaker reported a modest 8 percent increase in July auto and truck sales. Data released this morning that showed a .2 percent decline in July personal spending might also be weighing on GM. It marked the first decline in spending in almost two years and economsts were expecting the report to show an increase of .1 percent. GM is down and options volume in the automaker is 25000 calls/4750 puts through midday. The top trades are part of a spread, in which the strategist sold Sep 29 calls to buy Sep 31 and 31 calls, collecting 25 cents, 4900X. It’s possibly a roll down in strikes. The Sep 29 calls looking opening, but there’s sufficient open interest to cover in the 31s and 32s.

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

TEVA, which took a 6.2 percent hit on disappointing FDA trial study results for its MS drug yesterday, is down another $1.15 to $42.61 today. Shares are falling to new 52-week lows and one strategist appears to view the two-day sell-off as an opportunity for a bullish trade. A three-way was recently initiated after an investor sold Dec 35 puts to buy the Dec 45 – 50 call spread, paying 63 cents on the package, 3000X. A similar spread traded in TEVA last week as well (see 7/28 color).

Williams Companies (WMB) loses 17 cents to $31.45 and morning trades on the natural gas producer include multi-exchange sweeps of Aug 28 puts at the 25-cent asking price. 14,000 contracts now traded against 46,153 in open interest and ISEE data hint at closing customer buyers. Aug 27 puts and 35 calls on WMB are also seeing interest and implied volatility in the options is moving up 2 percent to 41 ahead of earnings, tomorrow afternoon.