Nokia (NOK) implied volatility is up amid heavy trading in the options after Google made a $12.5 billion all cash bid for Motorola Mobility. 66,000 calls and 20,000 puts traded in Nokia so far. Shares are up 96 cents to $6.32 an ambitous traders are showing interest in NOK Oct 9 calls. The contract, which is 42.4 percent out-of-the-money with a delta of .14, has traded more than 17,000 contracts. Aug 6 puts and calls are the next most ctives. Sep 6, Oct 6 and 7 calls are seeing brisk trading as well. Meanwhile, options implied volatility in NOK is up about 12.5 percent to 66, compared to a 52-week high and low of 72.5 and 26.5.

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

Halliburton (HAL) adds $2.36 t o$47.84 as the drillers rally on higher oil prices. Crude is now $1.56 to $86.94. Meanwhile, in HAL options action, one strategist sold the Sep 40 – 50 strangle at $2.16, 6000X, to buy 4,000 Sep 45 calls at $3.93. In other words, they sold 40 puts to buy the 45 – 50 (2X3) call ratio spread. The Sep 50s might be closing, but the overall position seems to be a bullish play in anticipation of additional gains in shares of the oil driller through the September expiration, which is in 32 days. HAL is up in four of the past five days, but down 17.3 percent from the 52-week high of $57.77 on July 25.

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

Research In Motion (RIMM) gains 91 cents to $25.47 amid strength in the smartphone makers after Google (GOOG) made a bid for Motorola Mobility (MMI). Nokia (NOK) is also seeing sold gains on the session. Meanwhile, in RIM options action, a 6349-contract block of Mar 35 calls traded on the Blackberry-maker at $1.92 on ISE. Sentiment data indicate a customer bought-to-open a position. 7,549 traded against 4,596 in open interest. Aug 27.5, Aug 29, and Sep 31 calls on RIMM are busy as well. 48K calls and 22K puts traded in the name, as shares climb for a fourth time in five days and move up 17.5 percent from the multi-year low of $21.6 set a week ago.

BP adds $1 to $41.17 and a 5800-contract block of Jan 36 puts on the oil company is bought at $1.85. It was tied to 600K shares at $40.94 and appears to be a new position. 6000 now traded against 185 in open interest. BP is on a three-day 8.1 percent run higher, but down 8.9 percent month-to-date. Earnings were last reported on 7/26. Crude oil is up $1.54 to $86.92 per barrel.