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

Big Print in BofA (BAC), which is down 26 cents to $6.12 and off 11.5 percent since Moody’s downgraded the bank yesterday. One player sold a 100,000-contract block of Jan 12.5 calls at 4 cents per contract. It’s likely a closing transaction. The Jan 12.5 call on BofA is now 51 percent OTM and has 766,154 in open interest, which is the largest position in BofA options. 284K calls and 203K puts now traded on the bank through midday. Meanwhile, implied volatility is up 8.5 percent to 85, but still well below the 52-week high near 150 set on 8/8.

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

Pulte Group (PHM) loses 36 cents to $4.01 and 35000 Jan 7.5 calls is sold on the homebuilder at 5 cents. It’s probably a closing trade, as open interest is 41,459 and the second largest position in the name. If so, it probably closes out position opened in Feb and early-March. From 2/7 to 3/3, open interest in the contract increased to 41,684 from 5,947. Shares are down 45.8 percent since March and the strategist is salvaging a nickel on the calls, which are now 46.5 percent OTM. Separately, a 23450-contract block of Nov 4 puts trades at 46 cents when the market was 46 to 49 cents. 25,994 traded against 42 in open interest. Looks like at-the-money put selling. Shares touched a 52-week low of $3.4 on 8/23 before staging a 5-day 37.1 percent rally to $4.95. PHM is down about 19 percent since that time and testing a support level at $4. Today’s put seller is possibly looking for the stock to hold support through the Nov expiration.

Yahoo (YHOO) with relative strength and early call buying after Stifel Nicolaus upped the stock to Buy and raised the price target to $18. Firm sees probability of a buyout now at 80 percent. Shares are up 21 cents to $14.17 and options volume in the first 5 min is 7,920 calls and 1,110 puts. Top trade is a 4830-contract block of Oct 18 calls at 27 cents when the market was 22 to 27 cents. 5,000 now traded. Oct 15, Weekly 14 and Jan 19 calls on Yahoo are seeing interest as well.