Mead Johnson (MJN) is under pressure this morning and it appears that downside puts are being bought and upside calls are being sold on the stock after a Missouri Walmart pulled a batch of powered infant formula after a baby died (Link to Story). Shares are down $6.48 to $70 and Jan 65 puts are the most actives. 2,860 traded and 61 percent traded at the ask, suggesting buying interest. Jan and Feb 80 calls are the next most actives and trading predominantly on the bid. Meanwhile, implied volatility in the options on the stock jumped 14.5 percent to 38, as players react to the unexpected news on MJN Thursday.