VIX dips below the 20 “psyche” level for the first time since late-July. The index is down 1.16 to 19.73 and has tumbled 15.8 percent from the highs seen yesterday, when a January settlement value of 23.64 printed Wednesday morning. VIX has been grinding lower over the past few weeks and is now down 43.3 percent since Nov 1. One player in the options market is possibly looking for a rebound in the weeks ahead, however, as a March 22 – April 28 strangle is being bought on the index today, for $4.85, 68000X on the session, to open.

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

Hartford (HIG) adds 40 cents to $18.51 and trading in the options on the insurance company is active today, with 15,000 calls and 2,600 puts traded in the name so far. The flow includes a multi-exchange sweep of 1,039 Feb 20 calls at the 41-cent asking price. Several more traded at prices ranging from 38 to 42 cents per contract. 5,884 traded against 2,878 in open interest and some of the flow is possibly rolling out of Jan 17.5 calls, which have raded 4,914 contracts (51 percent Bid) against 14,397 in open interest. Feb 19 calls on HIG are seeing interest as well and implied volatility in the options on the stock is up 5.5 percent to 45. Bullish trading in HIG comes ahead of a Feb 7 earnings release. The stock has performed well in the weeks leading up to the report — gaining 18 percent during the past month.

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

The top equity options trade so far today is in RIM after one strategist sold 34,000 Feb $12 puts on the Blackberry maker at 2 cents per contact. It’s possibly closing and was part of a multi-leg play which also included the sale of 6,200 Feb 15 calls at $3.07 and the sale of 4,900 Feb 16 calls at $2.34 along with the purchase of 6,200 February 20 calls for 62 cents and 11,000 Mar 17.5 calls for $2.02. Shares are up 32 cents to $17.60 today and have now rallied 31.3 percent during the past month. Today’s large blocks of options might exit a bullish position in in-the-money Feb 15 and 16 calls (also buying back deep OTM Feb $12 puts) to open a new bullish position in at-the-money Mar 17.5 calls and OTM Feb 20 calls. Meanwhile, implied volatility in RIM options is easing, down 5.5 percent to 61. Earnings were last reported in mid-December and don’t come into play again until late-March, possibly outside of the March 2012 expiration.