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

From Steve Smith. Bon-Ton shares are up 10c to $15.70, a new 52-week high and looks like someone is rolling up a bullish call position. In this trade, the strategist apparently sold the July $15s 9300X to buy July $17.50 calls 8500X. The spread, at a 95-cent debit (as if one-to-one), looks like selling to close the 15s on a position that was opened on 3/25 when the stock was around $12.90 and call was 95c. This roll higher would essentially create a new bullish position at a net zero cost.

This action is interesting as its part of a longer-term trade. We first noticed bullish activity in BONT on December 8. Then, with shares around $8.40 on Feb 12 (premium), there was rolling seen out of April and into July 10 calls. By March 5(premium), shares had risen to $11.20 and the strategist rolled up to the 12.5 strike. The position was rolled up again to the 15s in late March and now again to the 17.5s.

Tracking these kind of trades over time can be interesting because it can help identify trading ideas and opportunities in specific names that we might like for other reasons — either the fundamentals are strong or the technicals are improving, or both. That is, analyzing options order flow adds another element to the process of finding and analyzing good trading opportunities that make money. We offer a continuous stream of ideas and updates like this one with WhatsTrading.com Premium. With the flow monitor, it’s even easier to see past activity. Simply enter the symbol, then 1 for color, then the + for historical color.

Human Genome Sciences (HGSI) sees a spike on increasing volume and is up 49 cents to $31.73 on renewed takeover speculation — fly on the wall. In the options, March 32 calls are seeing interest in recent trade. 3000 now changed hands vs. 2726 in open interest. 33 percent traded Mid and 51 percent at the Ask. (Note: with the expiration at the end of this week, there are plenty of reasons to be skeptical of any chatter today and tomorrow.)

Norfolk Southern (NSC) is often considered the best managed rail company, but the stock is not at 52 week highs like it’s counterparts Union Pacific (UNP) and Kansas City Southern (KSU). That could change with a break of $55, which would target a move to $60. Option traders were decisively bullish Tuesday, with 4,425 calls trading, 3X average, and 90% offer side buys. The April and June $55 calls both saw buyers, with 2,800 in April $55’s changed hands. Shares trade 13.2X earnings and 18X cash value, and recently were raised to Overweight at Barclays with a $62 target. Recent improvements in pricing, shipping volumes, and improved outlook for coal were cited as reasons for the upgrade.

Some less actively traded names seeing bullish order flow: Interpublic Group (IPG), Campbell Soup (CPB), Hatteras Financial (HTS) Bearish order flow: Marsh and McLennan (MMC), Sonus Networks (SONS), Companhia de Bebidas Das Americas (ABV) Post Earnings: Staples (SPLS), Tech Data (TECD), Cooper Tires (CTB) Pre-Earnings: Costco (COST), Eagle Bulk Shipping (EGLE), Verifone (PAY), Big Lots (BIG), BJ Wholesales (BJ) Ex-div.: Pepsico (PEP), Analog Devices (ADI), Valley National (VLY), BHP

Sequenom (SQNM) jumps $1.34 to $8.26 and 25K options already traded after Cantor Fitzgerald upgraded the biotech to Buy from Hold and raised the target to $16 from $4. The analysts met with managament and cite settlement of class action along with advances in pipeline progress as reasons for the upgrade. 18K calls and 6,900 puts traded. March 9 call and April 8 puts are the most actives. Mar 7, Mar 8, Mar 10, and June 10 call seeing interest as well. Implied volatility is elevated, around 100, as investors brace for earnings. The results are expected soon, but no date has been set. A co. spokesperson says the date should be announced 48 hours to one week before the company reports.

Some less actively traded names seeing bullish order flow: World Fuel Services (INT), Mellanox Tech (MLNX), Rite Aid (RAD) Bearish order flow: Ducommun (DCO), Sonus Networks (SONS), POOL Post Earnings: Newmont Mining (NEM), Blackstone (BX), Kohl’s (KSS), Express Scripts (ESRX), Foster Wheeler (FWLT), Mylan Labs (MYL), Safeway (SWY), Salesforce.com (CRM), Netease (NTES) Pre-Earnings: Gap Stores (GPS), LEAP, Flour (FLR), Hansen (HANS) Ex-div.: None

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

Salient Pharmaceuticals (SLXP) is down $2.40 to $25.71 and implied volatility is moving after the FDA released briefing documents ahead of a Feb 23 panel meeting on Xifaxanor. The documents “raised questions about the evidence of efficacy of the study,” which seems to be one of the reasons for the weakness in the share price. Meanwihle, options volume is running 10X the average daily. Some investors seemed to be swapping Feb 30 for Mar 30 calls in early trading. March 25 puts and calls, Mar 30 calls, and Mar 22.5 puts are also seeing action, as investors jockey for positoin ahead of the FDA news. Meanwhile, implied volatility rallied about 14 percent to 115.

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