Despite the very quiet final week of the year, 2011 will be another record-setter for the options industry, with approx 4.4billion contracts trading in the form of 220million individual trades, a volume increase of about 10% vs 2010. SPY options represented nearly 16% of the total market volume (703 million contracts). HAPPY NEW YEAR AND THANK YOU FOR YOUR BUSINESS THIS YEAR! Best wishes for a great 2012, from Henry, Fred, and everyone at Whatstrading and Trade Alert!

Reminder: Markets closed Monday for New Years.

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

On one of the slowest days of the 2011, Leap wireless options are having their most active day of the year as shares leap 15% to $9.75 on a JPM note about potential M&A targets after the collapse of the T-mobile/ATT deal. PCS was also mentioned but Leap is in the lead with 22K calls trading and the Jan 9 calls leading the most actives trading from 61cents to a high of 1.48 as shares approached $10 this afternoon. IV in the LEAP Jan 10 strike is up nearly 23points to 105%.

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

Intel (INTC) loses a dime to $24.45 and a Jul 17 – 23 put spread is apparently bought on the chipmaker for $1.26, 10200X on PHLX. It’s also traded about 1200X on ISE. 11,900 total and, while open interest is sufficient to cover, data hints at opening activity. If so, the flow possibly adds to positions opened earlier this month and shortly after the company lowered revenue guidance. For example, on 12/16, 10000 July 17 – 23 put spreads were bought for $1.59 (see 12/13 and 12/16 color). Bearish tarding on the world’s largest chipmaker might be a bet that shares, which are up more than 20 percent since August, will see increasing volatility in early-2012. The company will release earnings on the afternoon of January 19.

While overall option volume is very light, TIVO is seeing unusually heavy activity, with 12000 contracts trading, triple the typical daily volume for the name. Puts dominate the flow with a closing customer buyer of Jan 11 puts for $2.34 early in the day when shares were near 8.85. Flow history on these suggest the buyer likely put on the position earlier this year near $2 when shares were around $9. Meanwhile, implied volatility in the options on the stock is among the big movers today. IV in TIVO is up 31 percent to 84! Shares have ranged from the low $7 level in Aug to a few brief peaks near $11. Earnings expected early-March.

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