Deep OTM put buyers in Overseas Shipping (OSG), as shares sink to new 52-week lows today. The stock is down 48 cents to $9.30 and Apr 4 puts are the most actives. 1,492 traded (91 percent Ask) vs. 365 in open interest. April 3 and 5 puts are seeing interest as well. Total volume is 4,250 puts and 560 calls and implied vols on the options on the stock is up 8 percent to 94. Shares have already lost almost 75 percent year-to-date and today’s options order flow seems to reflect expectations for additional carnage in early-2012.

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

BofA (BAC) loses 30 cents to $5.42 and is battling for top spot with Intel (INTC) as the biggest percentage loser in the Dow Jones Industrial Average today. In options action, noteworthy trades on the bank include a Jan14 7 – 12 call spread for 99 cents, 7324X and for $1.00, 5000X. 19,000 now traded in both contacts. Looking at side-of-market, it appears that the spread is being bought today — possibly a bet that BofA shares will see better days through 2012-2013.

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

Walmart (WMT) loses 13 cents to $58.19 and is one of thirty Dow stocks trading lower Monday morning. Meanwhle, a Dec 57.5 – Jan 60 (1X2) call ratio spread trades on the stock at 8 cents, 4000X. Looks like Jan 60 calls were sold and possibly rolls a position out one month, up 2.5 strikes. Shares of the world’s largest retailer have performed well in recent months, up 12.2 percent since September, and today’s spread might be an adjustment to a buy-write strategy in WMT.