Morgan Stanley (MS) adds 68 cents to $14.84 and recent options trades on the investment bank include a Jan 17.5 – Feb 17 call spread, bought for 45 cents, 10000X. It appears to be rolling activity, and possibly closing out Jan upside calls that expire in 31 days to buy Feb calls that expire in 59. The Jan 17.5s have 52,158 in open interest and are the second largest on the stock behind Jan 12.5 puts.

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

Even amid a monster rally on Wall Street, Research In Motion (RIMM) can’t get off the schneide Tuesday. Shares touched new 52-week lows and are down 31 cents to $12.58. Meanwhile, the top options trade on the Blackberry-maker is a 5000-lot of Feb $12 puts bought for $1.06 on AMEX. 33,000 now traded against 18,582 in open interest, as some players in the options market seem to expect the stock to now break below $12 in early-2012.

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

KB Homes (KBH) adds 47 cents to $7.50 and a 21,580-contract block of Jan 7.5 puts trades on the homebuilder at 48 cents when the market was 48 to 50 cents. It might be an opening put seller after data this morning showed New Home Sales improving to an 685K in November, which was up from 627K in October and also much better than the 627K that was expected. Building permits rose to 681K (vs. 644K consensus).

BofA (BAC) loses 24 cents to $4.96 and is dipping below $5 per share for the first time since March 2009. The top options trades on the bank today: Feb 4 – Jan 6 strangle at 20 cents, 24000X. It might be a closing trade and/or perhaps a bet that shares will hold around these levels (between $4 and $6), in the weeks ahead.

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

Lender Processing Services (LPS) has added 27 cents to $14.27 and attempting to stabilize after the 17.5 percent loss suffered Friday after the Nevada AG filed a lawsuit against the company for customer fraud. Early options trades on the stock include a 6000-contract block of Jun 21 calls bought for 75 cents per contract. Looks opening. 6,486 now traded against 10 contracts in open interest. Implied vols are up another 2 percent to 70.