Joy-Global (JOYG) shares were down slightly Monday, with implied volatility up 7.3% and has one of the largest negative net Deltas among stocks today, an indication of bearish sentiment. At 10am there was a buyer of 2,000 February $55 puts at the 44 offer with shares at $54.20. The trade comes as shares are at resistance of a descending triangle that has formed, with $50 the lower support level, a potential target move from here. Shares of the mining machinery firm have been a big gainer in 2009, but now trade at 15.7X earnings, 6.9X book value, and 19.4X cash flow, a bit lofty on valuation. Shares also had a DeMark red 13 sell Indication.

Rambus (RMBS) was up 5% to $22.63 Tuesday, but there seemed to be some reasons to be cautious, as 30 day IV sits at 98% ahead of a key court hearing on January 4th where Rambus hopes to win infringement cases for royalties. A trader paid $0.75 for the January $19/$16 out of the money put spread for 5,000 contracts. Shares have bearish MACD and RSI divergence on the breakout today, and $24.50 is a multi-year resistance level. Rambus trades based on legal issues and this large trade is looking for a disappointing outcome that would send shares crashing lower.

Hexcel (HXL) traded 30X average call volume Monday, with 3,110 traded. December $12.50 calls were bought with shares at $12 just 4 days from expiry, and June $15 calls traded offer side in multiple 100+ contract lots. Shares broke out of a wedge today and have seen strong buying volume the last few days. IV has jumped from 73% to 79% in the last couple days. The composites maker for aerospace and defense, as well as wind energy, could see positive movement with the Boeing (BA) Dreamliner launch coming, if successful, as demand for materials will pick up. Shares trade at a PEG of 0.93, 18.8X cash flow, and 19.7X earnings, but there is major upside potential. The breakout seen today on the chart could gain some steam and send shares much higher.

Alliance Data (ADS) shares crept 1.7% higher Wednesday and are eyeing a possible gap fill from current levels of $61.84 to near $67. Calls traded 2X average volume with a buyer of 2,000 January $65 calls at the $1.30 offer accounting for most of the days volume, and a buyer of the January $65/70 put back-spread for 300X600 contracts, which may also be a roll of 600 short puts to 300 short puts. Shares of the consulting and credit services firm trade 10X forward earnings and 25.5X cash flow with a substantial short float of 27%, 10.5 days to cover, which gives me some conviction that the gap may be filled the longer shares trade in this range. 70% of business comes from credit cards, consumer lending, so ADS is a mover on all consumer credit data. Michael Orkin has been shorting the stock since the $30 level and has been wrong the entire way up.

Lexmark (LXK) saw around 3X average call volume Tuesday, with shares 1.5% lower, due to a few large block buys. One trader bought 2,600 April $30 calls, another bought 1,500 July $30 calls, and even a buyer of 80 July $35 calls with shares at $24.75. Shares are currently holding gap support at $24.75 that coincides with the 50 day EMA. $27.50 is a key breakout level. Shares are trading 10.3X earnings and just 2.16X cash with a 14.8% short float.

Corning (GLW) shares broke to 52 week highs and more than 24,000 calls traded Friday, 4X average volume, with puts also trading 2X average volume at 9,000. The largest spread was a very bullish risk reversal in February as 8,600 of the $21 calls were bought at the 30 cent offer and 3,000 of the $18 puts were sold at $1.05, looking for a strong Q4 from the LCD screen maker. January $17.50 calls were also bought in large blocks at the offer throughout the day. Corning will present at the Barclays Tech Conference on December 9th, and the bullish February action is likely in anticipation of a February 5th Investor Meeting.

Alcoa (AA) traded 43,000 calls and 15,000 puts Wednesday, 1.2X average call volume, but with every large block trading at the offer, aggressively bullish plays. Shares quietly gained 6.6% on the day and IV rose 2%. Most of the action was short term buyers of December $14 calls, as shares broke out of a triangle on 49.4M shares, nearly twice the prior day. There has not been a lot of coverage of Alcoa lately, and it could be ripe for an upgrade.

Marvell Technology (MRVL) added nearly 4 percent and traded 8,400 calls and 2,700 puts Tuesday ahead of 12/3 earnings. The options action was a mix late in the day of the same strategy emulated a few times in large size amounting for around 2,000 X 4,000 December 16/17 ratio call spreads, the $16’s being bought and the $17’s being sold in a slightly bullish in price, and bearish the 47% implied volatility strategy. Maximum profits are realized on expiration on a move to $17, or 6% higher from here and at a previous double top resistance. Shares are fairly valued at 16.2X earnings, but profitability ratios are worrisome.

CableVision (CVC) was the subject of a bullish trade Monday, after a 2,500 contract risk reversal in March, selling the $20 puts and buying the $25 calls for a debit of $1.35 per spread. Shares were at $24.60 so this is a less risky reversal, but leverages funds for a move higher in shares.

CVC has consolidated above its 200 week EMA, and are forming a cup and handle with a breakout level coinciding with trend off the multi-year highs resistance at $26. Cablevision implied volatility is near the high end of the last 3 months at 48%. The cable provider trades 14X cash flow and was recently raised to Buy with a $28 target at Kaufman. There has been a lot of M&A talk in cable, and CVC recently posted a triple in profits, so it is a growth player in the industry.

Amgen (AMGN) saw a large spread trade at 11:11am Tuesday, as 3,950 January $60 calls were bought at $0.84 and 1,975 January $62.50 calls were sold at $0.34 for a $1.34 debit on the back-ratio spread. The trade is bullish in price, net 0.40 Delta, and also long volatility with a net 0.09 Vega. It appears that the trade was financed via the roll of 1,975 January $50 calls at $7.03. Implied volatility sits at 25%, 52 weeks lows, and below historical volatility of 29%, so the bullish volatility and price bet makes sense. There was also a buyer of 1,250 January 2011 $60 straddles, another bullish bet on volatility. Shares have built a new base filling the gap to $52 and are trending sharply higher here. There is a major convergence of EMAs around $58 that will be a key level.

Amgen shares are known for being very cheap as a growing BioTech Giant at 11X earnings, 10.65X cash flow, and 4X cash value. Shares slid from mid-October after its post menopausal Prolia drug was delayed by the FDA, a key to its future growth. Amgen should provide the FDA with updated Prolia indications shortly, and was recognized yesterday at the Scrip Awards for Best New Drug and Best Pipeline. As a date for Prolia nears the IV in Amgen shares should see quite a boost, possibly back to 37% pre-Prolia delay levels.