Call volume in Southwest Energy (SWN) is approaching 100,000 today. 14,000 puts traded on the stock and share volume, at 3.2 million, is only about half the typical volume for the name. Morning trades include a three-way, in which 2,500 February 34 calls were sold on the stock at 68 cents and 7,500 March 31 calls at $3.95 to buy 11,200 March 34 calls for $2.19. The same three way has traded multiple times today and is possibly rolling of Feb 34 calls, which expire at the end of the week, and March 31 calls, which are $2.61 in-the-money, to buy a new position on March 34 calls. Nearly 50,000 March 34 calls now traded on the Houston, TX oil and natural gas company. Shares are up 2 cents to $33.61. No recent headlines on the stock. Earnings come into play on February 27.

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

Express Scripts (ESRX) loses 17 cents to $50 and one strategist sells 3000 Jan 65 – 80 call spreads on the stock at 85 cents to buy 3,000 Jan 42.5 puts for $3.35. The same three-way traded again for $2.50, 3000X. The activity probably exits a position opened three days after the company announced plans to acquire Medco Health Solutions. On Jul 25, 8000 Jan 42.5 puts were sold on the stock to buy 8,000 65 – 80 call spreads. $1.15 was paid for the three-way. Shares are down 12.6 percent since that time and the strategist is possibly throwing in the towel on hopes for a move to the mid-60s through Jan 2013. ESRX took a 4.6 percent on Feb 6 amid concerns the deal won’t clear anti-trust hurdles. Levels of implied volatility in ESRX options is running to 52-week highs today amid the uncertainty.

Bears are circling Live Nation (LYV) Monday. Shares of the Beverly Hills, CA entertainment company are up 9 cents to $10.81 on volume of 586,000, which is only slightly more than normal. However, 14,000 puts and 420 calls traded in the name, which is 21X the daily average. The flow is concentrated in Apr 10 puts. Volume is approaching 12,000 against 146 in open interest. The action has been in smaller lots and includes a multi-exchange sweep of 823 contracts for 70 cents when the market was 60 to 70 cents. Data hints at opening customer buyers of puts on LYV today. Mar and Jul 10 puts are seeing interest as well and levels of implied volatility are moving up 24 percent to 59. The entertainment industry was rattled over the weekend after 48-year old Whitney Houston passed away in a Beverly Hills hotel. The Grammy awards were presented last night and Bloomberg noted before the fact that “The Grammys are struggling to stay relevant as the whole shebang resembles a last hurrah for the record industry,” but it is unclear what is driving the bearish activity in LYV, as there are no obvious headlines related specifically to that company Monday.

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

Yahoo (YHOO) loses 4 cents to $16.09 on the day and recent trades include a three-way, in which the strategist sold 4,000 February 16 calls on the Internet giant to buy 4,000 March 16 – 18 call spreads, paying 23 cents for the three-way and possibly rolling a bullish position out one month. YHOO saw high volume last week after Alibaba’s CEO mentioned the possibility of a complex deal, which would involve taking Alibaba’s Hong Kong unit private. That, in turn, would give Yahoo — Alibaba’s largest stakeholder — cash and an interest in one of Alibaba’s operating busesses. YHOO shares edged up 2.3 percent on the headlines Thursday and Friday. Today’s spread trader is possibly rolling the position to March on the view the stock will continue moving higher over the next 32 days.