Fairchild Semiconductor (FCS) adds 12 cents to $12.79 and options volume on the stock is running 6X the daily average, driven by a morning sweep of 2,331 Dec 13 calls across multiple exchanges, for 30 cents when the market was 20 to 30 cents. 2,727 now traded against 299 in open interest. Sentiment data is consitent with an opening customer buyer. The contract is 1.6 percent OTM and expiring in one week. The market is now 25 to 35 cents.

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

Sprint (S) loses a penny to $2.43 and more than 35,000 Dec 2.5 puts traded on the stock today. 99 percent traded at the ask, including a 24600-contract block for 16 cents. The next biggest trade is a 1279-lot for 13 cents on ISE and a customer buying-to-close, according to data from the exchange. Indeed, with the contract now 6 cents in-the-money heading into the expiration, investors might be closing some of the open interest (40,980) rather than running the facing the chance of assignment on the contract next week.

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

SPDR 500 Trust (SPY) adds $1.73 to $125.68 and a Dec [QTRLY] Dec 90 103 115 put fly trades on the ETF at 50 cents, 41500X. The spread has traded more than once and volume in the 103 strike is now 167,257 and the most actively traded options contract today. The action probably closes out positions opened in late-September when the same spread was bought for 85 cents, 89000X (see 9/20 color). Shares are up 3.8 percent since that time and the 115 leg of the spread is now 8.5 percent out-of-the-money. The position is probably being liquidated on diminishing concerns about additional losses for the equity market through yearend.