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

Legg Mason (LM) adds 35 cents to $26.62 and one player intiates a Jan 26 – Feb 22 put spread on the firm for 60 cents on ISE. Sentiment data indicate Jan 26 puts were bought and Feb 22 puts sold to open a new diagaonal spread. The position is being initiated after the stock moved up from $23.16 on 11/23, or 14.7 percent, and is possibly a bet that shares will fall below $26 (~2.3%) through the Jan expiration (46 days) but not below $22 (~17.4%) through the February expiry (74 days).

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

Titanium Metals (TIE) adds 81 cents to $16 and options volume is heating up on the Dallas, TX metals company, with about 17,000 calls and only 360 puts traded on the stock so far. Dec 16 calls, which are at-the-money and have 11 days of life remaning, are the most actives. 6,190 contracts changed hands. Dec 17, Dec 18, Dec 19, and Jan 17.5 calls are seeing interest as well. Speculative call buying has lifted implied volatility in the options on the stock up 22 percent to 57.

Yahoo (YHOO) loses 3 cents to $16.02 and morning trades on the Internet search giant include a 6200-contract block of Dec 18 calls bought for 16 cents per contract and apparently tied to 92K shares at $15.83. Another 6,150 traded for 15 cents against 37K shares at $15.92. Volume in the contract is now approaching 15,000, which makes it the most actively traded equity option during the first 45 min of Monday’s session. Shares gained 6.3 percent last week on reports Alibaba and Softbank, with help from Blackstone and Bain Capital, were preparing financing to buy Yahoo. Today’s call buyers might be taking positions in anticipation of an announcement before the Dec expiration (11 days). However, the activity might also be closing — as open interest in Dec 18 calls on Yahoo is 42,184.