CBOE Volatility Index (.VIX) is up 2.33 to 23.64 and moving to session highs, as the S&P 500 falls 10 points and heads towards morning lows. There doesn’t seem to be a specific catalyst for the market slide over the past 10 minutes, but note that the financials – AXP, BAC, and JPM – are the biggest percentage losers in the Dow Jones Industrial Average. Shares of many financials are following European banks and the euro lower in morning trading Tuesday on renewed worries about the health of European banks. Energy-related names are also under pressure after crude oil lost $1.06 to $73.54 a barrel.

The top options trades so far today are in the CBOE Volatility Index (.VIX) after the Sep – Oct 25 put spread trades at 45 cents, 58000X. The same spread traded yesterday and the action looks like rolling from one month to the next. Open interest in the Oct 25 puts increased by 54,880 to 129,900 following yesterday action and if today’s block of 58K adds to it, then the increasing interest is likely to make the contract the second biggest position in the VIX; behind the Sep 25 puts, which have 289K of open interest. VIX is down 1.33 to 21.86 today and has now suffered a four-day slide of about 20 percent. The large blocks of puts on the VIX might be hedges of VIX futures.

Bullish flow detected in Ensco (ESV), with 5975 calls trading, or 3x the recent avg daily call volume in the name. Shares are up $3.28 to $44.06 on a good day for the oil drillers after crude rallied $2 to $73.92 a barrel. Oil Service HOLDRS (OIH) up nearly 5 percent. ESV is among the day’s biggest gainers (RDC, PDE, NE, NBR, and DO also seeing relative strength). In ESV options, the focus is on Sep 43, 44, 45, and 47 calls, as well as Oct 45 and 46 calls. Overall sentiment based on the total order flow is 59 percent Bullish.

Big Print in CVB Financial as a 17,000 block of the October $5 puts (total of 20,000 now) trade in what looks like opening purchase. Shares have tumbled some 25% in the past two weeks.

Top equity options trades so far today are upside call buyers in Citi (C). Shares are off 4 cents to $3.67 and, after a 10.5 percent month-to-date slide, are once again probing support lows around $3.65. Meanwhile, in the options market, one player paid 9 cents per contract for 15000 Oct 4 calls. Another paid 4 cents each for 17,000 Dec 5 calls. A third big print is a block of 11,000 Dec 3 puts on the 9 cent bid. Some or all of these contracts might be closing. Citi has significant open interest. In fact, of the top 20 largest open interest in the options market today, 18 are Citi puts or calls. The top 15 are Citi options. Meanwhile, implied volatility has risen 10.5 percent to 41.5 today, compared to a 52-week high and low ofa bout 78 and 30.

Harmon, the Ct based audio/electronics manufacturer, whose shares are up a dime to $30.10 sees a big print in the September $27.50 puts as a block of 7,000 contracts trade at the 30c in what was an opening sale. Shares have been trading in tight range between $28-$32 for the past 10 weeks and with earnings having been delivered on Aug. 5th one investor may be thinking there is little danger of shares being driven below the strike price in the next few weeks.

Big Print in Walgreen’s as the September $27 puts trade 20,000 contracts at the 18c bid in what appears to be opening sale. Shares of WAG had traded down below $27 in late June following concerns over a dispute with CVS over PBM program and disappointing earnings but have since recovered and held above that level for the past six weeks.

Trading is active heading into the options expiration, with 1.8 million calls and 1.9 million puts traded in the first hour, which is more than double the usual. The CBOE Volatility Index (.VIX) hit a high of 27 and was recently up .10 to 26.54, as the underlying tone of trading remains cautious. The S&P 500 is down 7 points this morning and has now suffered a two-week 4.7 percent slide. While there was no economic news to guide today’s action, tech bellwether H-P (HPQ) is down 2.2 percent and the biggest loser in the Dow Jones Industrial Average on disappointing earnings news. A 1 percent drop in crude oil is hurting the energy sector and bonds are bid as wary investors move to safety amid a murky macroeconomic outlook. Looking forward, the earnings calendar slows noticeably next week and the first economic stat of significance is a report on existing home sales Tuesday morning.

ExxonMobile sees Big Prints Tuesday morning. One strategist sold August 60 calls at 73 cents to buy the bullish October 52.5 put – 62.5 call risk reversal, at 73 cents, 10000X on PHLX. Therefore, they came out even on this three-way spread and might be rolling out of August, into October, and or looking for shares to hold below $60 through the end of this week’s expiration, and then rally from that point forward.

HP (HPQ) shares are up 61 cents to $40.75 and trying to stabilize after a rough time during the first half of August. Prior to today, HPQ was down in 7 of 8 trading sessions and had given up 15.6 percent. The stock came under pressure after the close of trading last Friday on reports the company’s CEO was stepping down amid sexual harassment allegations. The WSJ reports today that the DOJ is also stepping up an investigation into the computer maker for alleged bribery in Russia. Yet, after the eight day sell-off, shares are steady and morning trades Friday include a Sep 42 – 45 call spread at 69 cents, 12000X on CBOE. This might add to or close a trade opened yesterday. The biggest trades in HPQ Thursday: 9320 Sep 42 – 45 call spreads at 60 cents (9 cent profit if closing). The 42s traded 23,333X and 45s 13,095X in yesterdays session.