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

Current total option volume of 6.5Million contracts puts us on pace for barely 12million contracts, the slowest day since last May. Div plays in PFE and AEP may help, but currently flow in most sectors is very light, with Telco and Homebuilders relatively ahead, but the normally busy financials and IT very quiet at about 75% of normal levels. Underlying volume is also dead, at 66% of normal for this time of day.

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

Cisco (CSCO) loses 12 cents to $17.91 and a Jan 17.5 – 19 strangle is sold on the networking company at $1.59, 4000X. The position is possibly closing, as both contracts have substantial open interest, and seems to be bet that shares will hold between $17.5 and 19 through the January 2012 expiration. After falling to 52-week lows of $13.73 on Aug 10, CSCO has been grinding it out over the past few months and is up 30.6 percent since that time. Meanwhile, implied volatility in the options on the stock is moving up 7 percent to 44 today, compared to a 52-week high and low of 67.5 (8/10) and 18 (12/20).

AIG loses 21 cents to $23.70 and a December 24 straddle is sold on the stock today at $3.44, 5000X. The position looks opening and possibly a bet that shares will hold around $24 (~1.3%) through the Dec expiration (39 days). Shares lost 2.9 percent Friday after earnings showed a much wider-than-expected loss for the quarter. AIG has been rangebound for many months, however, and trades at the same levels today as it did in early-August. Meanwhile, implied volatlity in AIG options, which hit 52-week highs of 77 on Oct 3, is up 2.5 percent to 54.5 today.