Nordstrom (JWN) adds 91 cents to $40.85 and is in the midst of a three-day 9.1 percent run higher. Oct 42 calls on the retailer are seeing noteworthy action. The top trade is a 2,635-contract block at $2.35 on ISE and an opening buyer, according to ISEE data. 7,730 now traded against 259 in open interest. The contract is now 2.8 percent OTM with a delta of .48 and expiring in 58 days. No news on Nordstrom today. Earnings were last reported on Aug 11. Shares moved up 5.5 percent on the news, but have seen seesaw action since that time. Today’s call buyers seem to be looking for additional gains in JWN in the weeks ahead.

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

Large trade in SPDR Financial (XLF) Weekly $12 puts for a second time in three days. A 60,000 contract block was bought at 29 cents when the stock was probing 52-week lows of less than $12 Monday. 115,965 traded on the session and open interest increased by 101,257 to 114,377. Today, shares are up 14 cents to $12.51 and 100,000 more traded at an average of 12.5 cents. It’s not clear if it was a purchase or sale, but one exchange-floor contact believes the initiator bought. If so, it’s a bold move, as the contract is now 4.2 percent OTM and expires at the end of the week. BofA is up 9.5 percent and leading the sector higher today after the bank sent an internal memo to employees saying recent speculation of a merger with JP Morgan is unfounded. Merideth Whitney was also out with positive comments on BAC today, saying the bank isn’t making a “mad dash” to raise capital. Goldman was also in focus this week on reports Chief Executive Blankfein hired a high profile defense attorney. Finally, Bernanke speaks to Central Bankers in Jackson Hole Friday, which might also hold some event risk for the financials before the 8/26 Weeklys expire.

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

Research In Motion (RIMM) adds 28 cents to $27.78 and has now rallied 28.8 percent off the Aug 8 52-week (intraday) low of $21.6. In RIMM options action, a noteworthy trade today is a Jan 21 – 26 ratio spread, in which the strategist bought 11,700 Jan 26 puts at an average of $3.625 per contract and sold 33,000 Jan 21 puts at an average of $1.625. The spread has a ratio of almost 3:1 and might be a roll up in strikes, as open interest in the Jan 21 puts is 36,958. If so, it probably exits a position opened on 8/8, when the stock was at 52-week lows and 49,200 Jan 21 puts were bought at $3.25 per contract (rolling out of Jan 24s, which were sold at $4.825, 36875X). In other words, a large block of puts was rolled from Jan 24s to Jan 21s on 8/8 and that positoin is now being rolled up to a much smaller position in Jan 26s.

American Eagle (AEO) is falling to new 52-week lows and down 94 cents to $10.68 Wednesday morning after the apparel retailer posted second quarter earnings that missed Street estimates. Early options order flow in AEO includes a multi-exchange sweep of 4,729 Sep 9 puts on the 10-cent bid. It’s possibly a liquidating sale. Even after a one-month 25 percent slide in shares, the contract is 14.6 percent OTM and expires in 23 days. 6,576 traded (88 percent Bid) against 11,759 in open interest. Meanwhile, implied volatility in AEO options is falling 15.5 percent to 57.5.