Activison shares up 20c to $11.90 an notable trade in the Jan. 2011 as the $10 puts and $14 calls trade 7,800 contracts each in what appears to be a bullish risk reversal (sold puts and bought calls) for a 1c credit in what should translate into new position.

Onyx Pharmaceutical shares are off 10c to $20.65 and option volume is 6x the daily average being driven by spread of the Aug. $30/40 call spread which traded 3,100x at 3c. This is likely closing a position 5/11 when shares were around $25 having already gapped down 5/4 following a disappointing earnings report. The biotech company has been a frequent mentioned as a takeover target in recent years but nothing of substance has ever materialized.

Early indications point to gains on Wall Street Wednesday morning ahead of a report on New Home Sales and the Federal Reserve’s rate announcement. Forty-five minutes before the start of trading in New York, stock index futures indicate that the Dow Jones Industrial Average might add 45 or 50 points at the open.

With little news to guide the morning action, attention will shift to New Home Sales numbers at 10:00 a.m. eastern time. Economists expect the report to show a decline to an annualized rate of only 430K homes in May, down from 504K the month before.

From there, market action might take a wait-and-see tone ahead of the Federal Reserve’s rate announcement at 14:15. No changes in rates are expected and investors will be looking over the text to see if the Fed has removed the phrase “extended period of time” with respect to the low interest rate policy. However, given recent inflation and other economic news, no major changes are expected.

Bonds have slipped into quiet trading ahead of the Fed. The benchmark ten-year Treasury is flat and yields 3.16 percent. The dollar slipped .34 to 90.13 against the Japanese yen. The euro edged up .0013 to 1.2275 against the buck.

Overseas trading is lackluster after the Dow Jones Industrial Average fell 149 points on disappointing Existing Home Sales numbers Tuesday. Japan’s Nikkei lost 1.9 percent. Major averages are modestly lower across Europe.

Commodities are also seeing sluggish action. Crude oil slipped 60 cents to $77.25 a barrel. Gold is down $1.60 to $1239.20 an ounce.

Among the stocks to watch, BP shares rose 2 percent after the oil giant put Bob Dudley, now CEO and President of BP’s Gulf Coast Restoration Organization, in charge of Gulf clean up efforts. Rite Aid (RAD) rose 9 percent after reporting a 9-cent per share quarterly loss, which was 5 cents better than expected. Carmax (KMX) gained 9.7 percent after reporting earnings of 44 cents per share and 11 cents better than Street views. Bed, Bath and Beyond (BBBY) and Nike (NKE) might see action today, ahead of earnings after market.

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

LDK Solar shares are down 20c to $5.89 and notable trade in the 2012 LEAPs as 5,000 of the $10 calls trade at the $1.00 bid. This looks to be an opening sale against stock (204K at $5.84). The chart shows a possible double bottom at $5.00 and ramped to $6.45, but is now drifting lower. The call write might be an overwrite to neutralize the position but maintain a bullish posture on LDK.

Early indications point to a slow start to the trading day ahead of a report on Existing Home Sales Tuesday. Thirty minutes before the opening bell on Wall Street, stock index futures indicate that the Dow Jones Industrial Average and the NASDAQ will open little changed.

Stock index futures slipped along with European benchmarks after Fitch downgraded France’s BNP Paribas. UK’s FTSE lost 1.2 percent, France’s CAC 40 Index is off 1 percent, and Germany’s DAX is down .6 percent.

Stock benchmarks in Asia also gave back some of the gains inspired Monday when China removed its yuan-to-dollar currency peg. Hong Kong’s Hang Seng slipped .5 percent and Japan’s Nikkei lost 1.2 percent.

In the US, the focus shifts to a report on existing home sales at 10:00 a.m. eastern time. Economists expect the data to show an increase to an annualized rate of 6.1 million homes in May, up from 5.77 million the month before.

Bonds are up bid ahead of the report. The benchmark ten-year Treasury is up 9/32nd and now yields 3.21 percent.

The dollar is down .36 to 90.38 against the Japanese Yen. The euro edged down .0034 to 1.2285 against the buck.

Crude oil slipped .18 to $77.64 and gold lost $4.2 to $1263.50 an ounce.

Among the stocks to watch, Walgreen’s (WAG) is down nearly 4 percent after reporting a quarterly profit of 53 cents per share, which missed Street estimates by 4 cents. Jefferies (JEF) jumped 4.9 percent after reporting 41 cents per share for the quarter, which topped analyst estimates by four cents. Adobe (ADBE) might see action today ahead of the software maker’s earnings, due out after the closing bell.

Stocks are indicated lower following big gains Tuesday and after the latest housing starts data fell short of expectations. Thirty minutes before the opening bell on Wall Street, stock index futures indicate that the Dow Jones Industrial Average might give back 50 or 60 of yesterday’s 214-point gain.

Stock index futures slipped after data showed Housing Starts falling to an annual rate of 593,000 in May, down from 659,000 the month before and below economist expectations of 655,000. Building permits, a better gauge of future activity, fell to 574,000 and also below economist estimates of 631,000.

Meanwhile, the latest Consumer Price Index showed a drop of .3 percent in May, and less than the .5 percent drop that economists had expected. Excluding food and energy, the core CPI rose .2 percent and twice as fast as expected.

Industrial production numbers are due out at 9:15. Economists expected an increase of .8 percent for May and a capacity utilization rate of 74.4 percent.

The overall data is weighing on stock index futures, but bonds are bouncing back. The benchmark ten-year Treasury is up 14/32nd and now yields 3.25 percent.

Action across the Atlantic has been lackluster thus far. France’s CAC 40 lost .5 percent, Germany’s DAX slipped .4 percent, and UK’s FTSE is flat. The euro gave back .0043 to 1.2273 against the buck.

Crude oil slipped 63 cents to $76.31 a barrel ahead of weekly inventory data. Gold gained $3.2 to $1237.60 an ounce.

Among the stocks to watch, FedEx (FDX) is down 2.5 percent after posing a quarterly profit of $1.33 per share, which was a penny better than Street estimates, but then offered lower guidance for the full year. BP shares lost 4 percent after President Obama blasted the oil giant in a televised address Tuesday evening. Nokia (NOK) fell 10 percent after lowering its earnings guidance. International Game Technology (IGT) is under pressure after Goldman cut the stock to Sell. Kroger (KR) and Smithfield Foods (SFD) might see pre-earnings action ahead of earnings, Thursday before market.

Fidelity national Information shares are up 15c to $27.30 notable trade in the June $27.50 straddle trades 4,500x in what looks like an opening sale for a $2.60 net credit. On Tuesday the financial processing services firm confirmed on Tuesday that talks with Blackstone for an LBO at $32 a share had been called off. The company will now seek to recapitalize through an increase in debt. IV, which jumped from around 30% to 50% when takeover talks were first revealed on May 6th (its chart stands in stunning contrast to the market on that day), is currently running around 45% level.

Early indications point to market strength following better-than-expected earnings from two Dow components along with upbeat housing data Tuesday. Less than thirty minutes before the start of trading in New York, index futures indicate that the Dow Jones Industrial Average might add 60 or 70 points at the open.

Wal-mart (WMT), the world’s largest retailer, is trading up 1.3 percent after reporting a quarterly profit of 88 cents per share, which beat Street estimates by 3 cents. Another Dow stock, Home Depot (HD), reported 45 cents per share for the quarter and a nickel better than analyst estimates.

In economic news, the latest housing starts report showed an increase to an annualized rate of 672K in April, up from 635K the prior month and much better than economists expectations of 655K. However, building permits, a better gauge of future activity, fell from 685K to 606K and well below expectations of 608K.

Meanwhile, markets are mostly higher overseas. While Japan’s Nikkei finished flat, Hong Kong’s Hang Seng added 1.2 percent. France’s CAC 40 is pacing a broad advance across Europe, gaining 2.3 percent into midday.

Crude oil rallied $1.58 to $71.66, but gold has lost some of its recent flight to safety bid. The yellow metal is down $13.9 to $1214.20.

Bonds are holding gains after the latest Producer Price Index [PPI] showed a decline of .1 percent for April. Economists were looking for an increase of .1 percent. The benchmark ten-year Treasury is up 5/32nd and now yields 3.47 percent.

The euro has steadied, adding .0015 to 1.2407 against the dollar. The buck edged up .12 to 92.73 against the Japanese yen.

Stocks are indicated lower on Wall Street following a round of selling in global equity markets and ahead of economic data Friday. Forty-five minutes before the start of trading in New York, index futures indicate that the Dow Jones Industrial Average might lose 70 or 80 points at the open.

Stock index futures fell along with overseas markets. In Asia, Japan’s Nikkei lost 1.5 percent and Hong Kong’s Hang Seng fell 1.4 percent. Volatility picked up across Europe as well. France’s CAC 40 Index gave up 2.6 percent, Germany’s DAX is off 1.4 percent, and UK’s FTSE lost 1.8 percent.

Fresh worries about euro-zone stability are weighing on global equity markets after data showed Spain’s core inflation turning negative and after the euro made a run below 1.25 against the buck. The euro, which has been pummeled in recent weeks on worries about massive debt burdens in Greece, Spain and Portugal, is down another .0043 to 1.2476 against the US dollar.

In the US, stock index futures fell, but bonds are bid ahead of busy economic calendar. The benchmark ten-year Treasury is up 7/32nd and yields 3.50 percent.

Early economic releases Friday showed retail sales up a better-than-expected .4 percent in April, compared to expectations for a .2 percent increase. However, stripping out autos, sales rose .4 percent and below expectations of .5 percent and significantly less than the 1.2 percent increase seen in March.

Industrial production numbers are due out at 9:15 eastern time. Economists expect the report to show a .8 percent increase in production and a capacity utilization rate of 73.7 percent. The University of Michigan Sentiment Index follows at 9:55 and the latest business inventory data at 10:00 a.m. eastern.

Among the stocks to watch, some of the gold miners and metals names are seeing relative strength after gold gained another $18 to $1247.20 an ounce. However, crude oil slipped $1 to $73.40 a barrel.

Blockbuster (BBI) shares are down more than 20 percent after the company reported a quarterly loss of 33 cents per share, which was 19 cents worse than analyst estimates. Nvidia (NVDA), Nordstrom (JWN), and Computer Associates (CA) are also seeing post earnings weakness. Mastercard (MA) and Visa (V) fell after the Senate past new rules on debit card fees. Netflix (NFLX) lost 3.5 percent after Citigroup downgraded the stock to hold from Buy.