Gap Stores (GPS) loses 53 cents to $18.72 after posting better-than-expected earnings, but missing on revenues. The top options trade on the retailer today is a Dec 15 – 18 put spread, for 54 cents, 657X on ISE. Data indicate an opening buyer, 1241X total on ISE this morning. Dec 18 puts on GPS have now traded 3548 contracts. Some of the activity might be rolling out of Nov 19s, which have traded 1835X. Implied volatility is down 22.5 percent to 39 now that the earnings event risk has passed. Focus in the retail world next shifts to holiday sales heading into next week’s Black Friday.

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

43,000 puts and 9,650 calls traded on Morgan Stanley (MS) through midday. Shares are down 7 cents to $14.20 and the top trade is a 10000-contract block of Jan13 $13 puts for $3.55 on ISE. Data indicate an opening customer buyer. Separately, a 5200-lot of Jan13 $20 puts traded at $7.80 on ISE and is also an opening position, according to ISEE data, and traded b/d-to-b/d. Nov 14 puts, which are 20 cents OTM heading into the expiration, are also actively traded. A 3,346-contract block traded at 15 cents this morning. 8,400 now traded and the market is 9 to 11 cents. Meanwhile, implied volatility in MS options is easing 7.5 percent to 71, as shares attempt to stabilize from a two-day 11.3 percent skid suffered Wednesday and Thursday.

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

Salesforce.com (CRM) shares are down $12.20 to $113.89 and trading is active in the front-month options on the stock after the company reported better-than-expected third quarter results and offered in-line guidance for the fourth. 39,000 contracts traded in CRM during the first 20 minutes of trading. 25,000, or 64.1% of the activity, are expiring November contracts. In order of volume, Nov 110 puts, 120 puts, 115 puts, 125 puts, 120 calls, 100 puts, 115 calls, and 125 calls are the most actives. Last day premium selling and the post-earnings vol crush has implied volatility in CRM options down 28.5 percent to 55.