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

Gold Fields (GFI) is off 89 cents to $11.05 after gold prices plummeted $37 to $1075 an ounce Thursday. In the options market, morning trades include Apr 12 - 14 call spreads, apparently sold at 27 cents, 7000X. It might roll a position down in strikes (that is, buy to close 14s and sell to open 12s.) Yesterday, GFI saw an opening seller of 7900 Jan 12.5 calls at $1.65 and probably part of a buy-write because it was tied to shares at $11.95.

So, it appears that call writers are dominating the recent activity and possibly creating buy-writes in the gold miner. Also known as a “covered call”, the buy-write is simply buying shares and writing calls. In most buy-writes, the investor sells 1 call for every 100 shares. Yesterday, for instance, the strategist bought shares at $11.95 and sold calls at $1.65. The cost basis for owning shares falls to $10.30 (11.95 - 1.65), excluding commissions. The upside is also limited in the buy-write because, if shares move above the call strike prices, the options will be assigned. In this case, if GFI moves beyond $12.50, the calls will be assigned at $12.5 at January expiration for a 21.35 percent gain (over the cost basis).

Some less actively traded names seeing bullish order flow: Campbell’s (CPB), Thermo Fisher (TMO), Landstar Systems (LSTR) Bearish order flow: Aixtron (AIXG), Flowers Foods (FLO), Overseas Shipping (OSG) Post Earnings: Dow Chemical (DOW), Suncor (SU), BP, Hologic (HOLX), American Superconductor (AMSC), Emerson Electric (EMR), ADM Pre-Earnings: Pfizer (PFE), Comcast (CMCSA), International Paper (IP), Whirpool (WHR), Polo Ralph Lauren (RL) Ex-Div: Pfizer (PFE), Boeing (BA), Norfolk Southern (NSC), Teekay LNG Partners (TGP), Markwest (MWE), Linn Energy (LINE), Regency Energy Partners (RGNC), AstraZeneca (AZN), Williams Partners (WPZ)

A leak in LEAP? Shares of both Leap Wireless (LEAP) and MetroPCS (PCS) spike late Monday after the Wall Street Journal reports that LEAP has hired advisors to consider putting itself up for sale. Consequently, options action is heating up for a second day. Bullish trading surfaced in both names Friday (see Premium). Today, as shares rally around the news, sentiment in LEAP seems mixed, as some traders are likely taking money off the table. Shares are up $1.54 to $14.73 and 12K contracts traded (8750 calls and 3020 puts). PCS gained 29 cents to $5.92 and recent trades include 1,141 Feb 7.5 calls at the asking price of a nickel.

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

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

Shares of Cliff Natural Resources, which have declined some 20 percent in the past two weeks, are getting a 5% bounce today up $2.52 to $42.47 a share. But someone might be getting religion a little late and wanting some protection in case another 30 percent drop is in the cards, as a block of 3,000 of the July $30 puts was purchased at the $1.90 asking price. Shares of CLF are still up some 150% from March lows.

After hitting a high of $43.39 early, National Oilwell (NOV) came under pressure in morning trading and was recently down $1.36 to $41.56. In the options market, bearish flow was detected, with 11,420 puts traded, or about 6X the recent average daily. Feb puts with strike prices ranging from 40 to 45 are seeing the bulk of the flow and implied volatility is up about 3.8 percent to 42. No news on the oil driller today and the action might reflect some anxiety about the company’s Feb 3 earnings release.

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

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