Yahoo for the trader who just put up a cool 270,000 contract trade on the PHLX on an otherwise low volume Monday with the broad averages near flat and vix up .79 to 17.89. On the PHLX the initiator paid 13c for 30K April 19calls and 1.38 for 70K July 16 calls and 10c for 40K July 22calls versus a sale of 130K July 18c for 56cents. Appears to adjust a large July 16-19 1×2 callspd that traded on jan 4th (see 1/4/2012 color).

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

Vulcan Materials (VMC) is up 4 cents to $44.83 and early options trades on the stock include a multi-exchange sweep of 1,063 Feb 45 puts for $1.80 per contract. 3,070 now traded against 106 in open interest. Data from the ISE indicate opening buyers and implied volatility in the options on VMC is up 21 percent to 41. Some investors might be hedging their bets ahead of a Feb 15 earnings report. The stock has surged 33.8 percent since Martin Marietta made an all stock hostile bid for the maker of sand, gravel, and other construction-related materials. VMC has thus far rejected the offer. Martin Marietta might shed light on its future plans when the company reports earnings tomorrow.

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

Dryships (DRYS) sees a second day of increasing volume. Shares are up 20 cents to $2.63 on volume approaching 14 million. Typical volume in the first two hours is about 2 million shares. Meanwhile, options activity is running 3.5X the daily average. 21,000 calls and 1,245 puts traded on the stock. Today’s flow seems to include buyers and sellers. Feb 2.5 calls, which are now 13 cents in-the-money and expiring in 11 days, are the most actives. The top trade is a 411-lot on the 15-cent bid and is possibly a liquidating trade. Mar 2.5, Feb 3, Mar 3, and Jan 2.5 calls are the next most actives and levels of implied volatility are moving up 1.5 percent to 84. DRYS saw a pop late Friday on increasing volume as well (see 2/3 color). The gains in the stock and high volume are possibly related to news today that the company’s Oil Drill UDW unit struck a drilling contract with Norweigan Continental Shelf, which will add about $653 million in revenues to the backlog.