International Paper (IP) adds 64 cents to $29.34 and one strategist initiates a Jan12 20 – Jan13 23 call spread on the paper company for $1.25, 3807X. Looks like the spread was sold and a position rolled out one year, up three strikes. The move might be part of a longer-term overwrite play by a shareholder, as the 23 calls are already 21.6 percent in-the-money. Rather than face assignment on the $20 calls, they’re rolling to Jan 2013 $23 calls, collecting about $1 in time value and $1.05 in dividends through 2013.

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

Relative weakness and higher put volume in Focus Media (FMCN) . Shares are off $1.28 to $25.34 and 28,000 puts traded on the Chinese media company, which is more than 7X the day’s call volume and about 16X the expected through midday. The top trade is a 500-lot of Nov 18 puts traded for 75 cents when the market was 65 to 80 cents. 5,074 Nov 18 puts now traded. The contact is 29 percent OTM and expires in 10 days. Nov 20, 21 and 22 puts, as well as the Dec 18 puts, on FMCN are seeing interest as well. Implied volatility in the options on the stock is up 15 percent to 98 and the high volume in short-term downside puts in FMCN seems to reflect some concern about the short-term outlook for the underyling stock. No news on Focus Media yet today. Earnings were last reported on 8/22 and expected again around 11/21, possibly outside the Nov expiration.

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

Alpha Natural Resources (ANR) is up 91 cents to $28.65 and has rallied almost 20 percent since earnings were reported last Thursday. Recent options trades on the coal producer include a Nov 23 – Dec 24 put spread, bought for 94 cents, 10000X. Looks like a roll and possibly closing out a position opened Thursday, when the stock was up on earnings and ANR options saw a flurry of activity — including 7500 Nov 23 puts bought for 70 cents and tied to stock at $26.36. Today’s spread probably rolls the position out one month and up one strike following the move higher in the underlying since Thursday.

US Steel call volume is heavy this morning, driven by a seller of 9000 Jan12 30 calls for $2.67 when shares were near $28. Looks outright, with net delta of about 400K shares. Executing firm crossed the trade as shares quickly dipped nearly 30cents, making the print appear offer-side, but a source on the floor confirms paper sold. Last Friday on the PHLX a cust paid 1.575 for 20000 Jan 30-35 call spreads to open a new position when shares were near 27.60 and today’s trade may close half the 30s for a 20cent loss. Current total call open interest of 466K contracts in US Steel is a record for the year.