The options markets are on track for a meagre 14.3million contracts today (try symbol @all in Flow Monitor), a far cry from the peaks seen in August when adv was above 25Million contracts and OCC reported three daily volume records in a week (including 41.5M on Aug 9th!). SPY leads the volume today marketwide, with 2million contracts trading by 3pm ET and puts leading calls nearly 2:1, in line with recent p:c levels. Weeklys that expire tomorrow lead the list, with nearly 700K contracts trading (31% of total SPY), including what looks like a roll of 10K 9/2 122puts out to 9/9 120puts for a credit of 43cents.

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

Research In Motion (RIMM) adds 54 cents to $33.03 and morning options trades in the Blackberry-maker include a bearish combo, in which the strategist bought 9,200 September 29 puts 91 cents and sold 9,200 October 42 calls at 64 cents. The risk-reversal is tied to 375K shares at $32.81 and looks opening. Shares have rallied 52.8 percent off the 52-week low of $21.8 set on 8/8 and the position might have been initiated in anticipation of heightened volatility in RIM heading into a Sep 15 earnings release.

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

Bank of NY (BK) lost 3 percent in morning trading on news of the surprise resignation of CEO Robert Kelly. Shares have recovered, however, and are now up 47 cents to $21.17, nearly 6 percent off session lows. Trading in BK options is brisk. 17,000 calls and 8,650 puts so far. The action has been in smaller sizes and seems to reflect mixed sentiment. The top trade is a 300-lot of Oct 21 calls at $1.40 when the market was $1.36 to $1.41. Meanwhile, Sep 22 calls, Sep 20 puts, Sep 23 calls, Sep 19 calls, and Sep 21 calls are the most actives. Shares of the bank touched 52-week lows of $18.77 on 8/23 and have rallied 12.8 percent since that time.

Blue Coat Systems (BCSI) is rallying today and was recenty up 9 percent to $16 per share. Options volume on the Sunnyvale,CA business software developer is 2,850 calls and 560 puts, or about 2X the recent average daily volume. Oct 15 calls, which are now 6.7 percent ITM, are the most actives. 1,538 traded against 8 contracts of existing open interest. Sep 16 and Oct 17 calls are seeing interest as well. Implied volatiity in BCSI options is up 13 percent to 66 percent. Shares tanked 24.7 percent on 8/17after after earnings were reported and hit new 52-weeek lows of $12.25 on 8/18. Shares have been rallying since 8/22, however, and are up 28 percent over the past 8 days. Today’s flow seems to reflect expectations for additional gains in the weeks ahead.