Microsoft (MSFT) loses 37 cents to $26.82 and one strategist sells Jan 21 – 26 put spreads to buy Jan 30 calls on the software giant, collecting 58 cents on the 3 way, 28000X. Open interest is sufficient to cover, but this might be a new position, because the Jan 21 – 26 put spread has not traded in any substantial size in the past. The bullish three-way is tied to 1.22 million shares at $26.86 and comes just a few days after Microsoft released earnings.

Market Vectors Mining ETF (GDX) gains $2.13 to $58.16 on a good day for the miners after the yellow metal surged $55 to $1707 an ounce. Gold is shining and an noteworthy trade in GDX is a Dec 57 – 60 – 62 call Tree at 21 cents, 15000X. The strategist collected the credit to buy the 57s for $4 and sell the two higher strikes for a combined premium of $4.21 (2.47 + 1.74). The spread offers its best payoff if GDX settles at $60 at the December expiration, which represents a 3.2 percent gain over the next 52 days.

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

First Solar (FSLR) implied vols are moving up on news the CEO has been dismissed in a surprise move. Shares came under pressure on the headline 40 minutes ago and are down $10.61 to $47.34. Players are scrambling to buy downside puts. Nov 45 puts are now 4.9 percent OTM and are the most actives, with 5,900 traded. Weekly 40, 45, and 50 puts are seeing brisk trading as well. Implied volatility in FSLR options has moved up 31.5 percent and is elevated at 106.5.

Puts on SLM are busy for a second day. Shares are down $1.16 to $13.02 after the WSJ reported that the Obama adminstration is looking to cut student loan interest rates. SLM puts saw a flurry of activity yesterday in front of the news (see 10/24 color – premium). Options volume is running 2.5X the daily average today, with another 12,000 puts and 3,300 calls traded on the stock so far. Like yesterday, the action has been scattered across a number of different contracts and in smaller sizes. The top trade: a 788-lot of Jan 14 puts at $1.96. The next biggest is 188 Dec $11 puts at the 49-cent asking price. Nov $11, 12 and 13 puts are the most actives. Meanwhile, implied volatility in options on SLM is up 19 percent to 60.5 and up more than 35 percent on the week.

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

Oracle (ORCL) loses 22 cents to $32.65 and Dec 30 – 33 put spreads traded on the software maker Tuesday morning. 7,000 traded at 97 cents on ISE. 2500 more also traded at 97 cents on ISE. Sentiment data indicate a firm bought-to-open a new position. The positioning comes the day after ORCL shares edged up 2.3 percent on news the company is acquiring Rightnow Tech. The stock has now rallied 31.5 percent since 8/19 and today’s spread trade might have been initiated to hedge the recent gains.