Apple Computer (AAPL) loses $21.33 to $400.91 and is under pressure today after the company missed Street estimates for the first time in at least six years. The top options trade is a Dec 370 – 400 put spread, apparently sold on the stock at $11, 1239X on CBOE. It might be a closing trade. Beyond that, a lot of the action has been in October puts and calls. Of the 879K contracts traded, 60 percent, or 526K contracts, have been front-month options. The thirteen most active options in Apple today are October options. Oct 400 puts and 410 calls are seeing the most volume. Meanwhile, implied volatility in AAPL options is down 17 percent to 32.5 and well below (-38.7 percent) below the 52-week high of 53 seen on Oct 3, but also 66 percent above the lows around 19 seen in late-May.

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

A few large prints in Bank of America options are contributing to heavy volume in the ticker, with nearly 300,000 contracts printing by 1pm, 20% above normal for this time of day. Largest was a 1×3 ratio spread where a cust sold 12100 May 6 puts and bought 36300 May 3 puts for a net credit of 28cents ($338K). Appears opening and suggests a bearish view on shares, net vega is about $10K long to the initiator.

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

Lennar (LEN), which rallied 9.3 percent yesterday after NAHB reported that its index of homebuilder sentiment jumped to 18 in October from 14 the month before, is up another 2 cents to $15.94 today after data showed Housing Starts up 15 percent to a better-than-expected annual rate of 658K in September. Trading in LEN options is brisk today. 9,630 calls and 250 puts on the builder so far. The top trade is a 3000-lot of May 20 calls for $1.15 when the market was $1.07 to $1.15. 6,129 traded against only 23 contracts in open interest. Looks like buyers are dominating the flow and possibly rolling out of Nov 15 and Jan 17.5 calls, which are also seeing interest today and trading predominantly on the bid. The company reported earnings one month ago and, after falling to a 52-week low by 10/4, shares are up 9.7 percent since the results were reported on 9/19.