Limited Brands, Inc. lured call traders on Thursday, after the shares retreated despite the retailer's stronger-than-predicted third-quarter earnings. During the course of the session, the stock saw about 6,100 calls exchanged - more than doubling the number of LTD puts traded, and nearly five times its average daily volume of fewer than 1,250 calls.

Many of the call traders seemed to be placing last-minute bets ahead of November options expiration, which goes into effect after the closing bell today. The security's at-the-money November 17.50 call saw almost 3,250 contracts change hands, and call open interest at the 17.50 strike jumped higher overnight. The 17.50 strike is now home to nearly 4,600 open call positions in the front-month series, taking runner-up to the 20 strike, which houses close to 8,600 LTD calls outstanding.

As a result, the equity's Schaeffer's put/call open interest ratio (SOIR) - which measures options slated to expire within three months - inched lower overnight, from 0.82, in the 40th annual percentile, to 0.78, in the 35th annual percentile. In other words, short-term option speculators have been more bullishly biased toward LTD only 35% of the time during the past 52 weeks.

Technically speaking, in parity with the broad market, the shares of LTD have extended yesterday's slide, shedding 2.3% to flirt with the $17.30 level. The stock is now poised to close the week beneath support at its 10-week moving average for the first time since mid-July.

Call speculators singled out Patterson Companies, Inc. on Thursday, after the medical-supplies maker reported improved fiscal second-quarter earnings and reiterated its 2010 outlook. During the course of the session, the equity saw roughly 7,300 calls cross the tape - almost tripling its average daily call volume, and more than nine times the number of PDCO puts traded.

Most active was the stock's November 25 call, which saw close to 3,500 contracts change hands. However, 67% of the calls traded at the bid price, suggesting they were sold, and call open interest at the November 25 strike fell overnight. In other words, it seems many call traders were liquidating positions in light of front-month options expiration after the close today.

Ahead of the company's turn in the earnings spotlight, option players on the International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE) were scooping up PDCO calls at a rapid-fire rate. The equity's 10-day call/put volume ratio of 4.83 implies that, during the past two weeks, nearly five PDCO calls were bought to open for every one put purchased. This ratio ranks in the 69th percentile when compared to similar readings taken during the past year, underscoring the escalating optimism.

At last check, the shares of PDCO have given back 1.3% to linger in the $25.85 region. Containing the stock's pullback, however, is its ascending 100-day moving average, which has played the part of near-term support since late October.

Prudential Financial, Inc. was pummeled by call traders on Thursday, a day ahead of the financial firm's ex-dividend date (today). During the course of the session, the security saw close to 64,000 calls change hands - nearly 10 times its average daily volume of fewer than 6,500 calls, and roughly 14 times the number of PRU puts traded.

Most active was the in-the-money November 45 call, which saw about 19,800 contracts cross the tape. The majority of the volume changed hands at the ask price, suggesting they were bought. However, call open interest at the 45 strike actually depleted overnight, confirming our suspicions that many traders exercised their options in order to buy the shares of PRU and capture the dividend, which is payable on Dec. 18, according to Thomson Reuters.

The rush to cash in on Prudential's dividend is further reflected in the stock's Schaeffer's put/call open interest ratio (SOIR), which measures options slated to expire within three months. In light of yesterday's plunge in short-term call open interest, the equity's SOIR skyrocketed overnight, from 1.27, in the 64th annual percentile, to 1.63, in the 97th annual percentile.

At last check, the shares of PRU have inched lower along with the broad market, backpedaling 41 cents, or 0.8%, to hang out in the $47.60 neighborhood. Containing the stock's rally attempts has been its descending 100-week moving average, which has acted as a technical roadblock since mid-September.

Options traders flocked to Intel on Thursday, as more than 236,000 contracts changed hands. This surge in volume was more than double the equity's average daily trading volume, according to data from WhatsTrading.com. Furthermore, it appears that traders have a preference for calls, as 67% of the volume changed hands on the call side.

Drilling down on the action in the front three months of options, we find that the November 19 call added 3,500 new positions, while the November 19 put shed 3,000 positions. The December 20 put saw its open interest decline by 3,500 positions, while the December 18 put added 3,000 new positions. In the January series, the 20 call added 5,500 contracts and the 21 call increased its open interest by 5,000 new positions.

The International Securities Exchange (ISE) shows a growing preference for puts. The 10-day put/call volume ratio comes in at 0.79, which is higher than 82% of all those taken during the past year.

Meanwhile, Wall Street is thoroughly smitten with the shares. According to Zacks, the stock has earned 23 "buy" ratings, seven "holds," and three "sells." In fact, INTC could start the morning off on the right foot after BMO Capital Markets initiated coverage of the shares with an "outperform" rating. This new ranking comes after Bank of America Merrill Lynch downgraded the shares to "neutral" on Thursday.

Options trading was brisk on Sears Holdings on Thursday, as more than 51,000 contracts crossed the tape. This jump in volume was 2.7 times the equity's average single-session trading volume of 18,914 contracts, according to data from WhatsTrading.com. In addition, 70% of the volume changed hands on the call side.

In the front three months of options, the November 75 call added 3,500 positions, while the December 70 call increased its open interest by 2,000 positions. The December 70 put added 2,500 new positions. Meanwhile, the December 85 call added roughly 1,800 new positions.

Overall, options players appear to be relatively optimistic toward the shares of the retailer. The Schaeffer's put/call open interest ratio comes in at 1.20, which is lower than 79% of all those taken during the past year. In other words, short-term options speculators have been more optimistic toward the shares only 21% of the time during the 12 months.

In fact, the International Securities Exchange (ISE) has seen an increase in call trading. During the past 10 trading sessions, nearly six calls have been purchased to open for every one put purchased to open. This ratio of calls to puts is higher than 89% of all those taken during the past 12 months, pointing to a growing optimism toward the shares.

However, this wealth of call options could be used as a hedge against a healthy short position on the shares. During the past month, the number of SHLD shares sold short increased by nearly 4% to 15.5 million shares. This buildup of bearish bets is 11.6 times the equity's average daily trading volume and accounts for 15.5% of the company's total float. These calls could protect these bearish bets against a jump in the price of the shares.

MasterCard Inc. was the center of some heavy options trading on Thursday, as more than 46,800 contracts changed hands. This surge in volume was nearly three times the equity's average daily trading volume of 16,961 contracts, according to data from WhatsTrading.com. In addition, 64% of the volume crossed the tape on the call side.

Digging into the action in the front three months of options, we find that the December 240 call added approximately 1,200 new positions, while the January 2010 270 call increased its open interest by roughly 1,800 new positions.

Overall, traders have favored calls on MA. The International Securities Exchange (ISE) has reported 1.7 calls purchased to open for every one put purchased to open during the past 10 trading sessions. This ratio of calls to puts is higher than 85% of all those taken during the past 12 months.

In addition, the Schaeffer's put/call open interest ratio for MA comes in at 0.87, which is lower than 81% of all those taken during the past 12 months. In other words, short-term options players have been more optimistic toward the shares only 19% of the time during the past 52 weeks.

Even Wall Street is enamored of the shares. According to Zacks, 16 of the 20 analysts following MA rate it a "buy" or better. Any downgrades from this smitten group could spell trouble for the shares.

NetApp Inc. has been quite popular in the options pits today, with traders keying off the company's stronger-than-expected quarterly earnings report. Heading into the close, NTAP has seen more than 28,000 contracts across the tape, nearly quintupling the stock's average daily volume. What's more, this activity appears to have a bullish slant to it, as WhatsTrading.com reports that 61.01% of NTAP's volume has traded on the call side.

Optimism from the speculative options crowd has been thin for NTAP lately, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.82 ranks above 68% of those taken during the past year. Furthermore, the bears dominate activity on the International Securities Exchange (ISE) and the Chicago Board Options Exchange (CBOE). In fact, during the prior two weeks, puts bought to open have outpaced puts bought to open, as NTAP's 10-day call/put volume ratio arrives at 1.02 and ranks above 79% of such readings taken in the previous 52 weeks.

Technically speaking, NTAP has bucked the downtrend in today's trading, rising more than 4% versus the S&P 500 Index's (SPX) decline of 1.55%. The shares have been in rally mode for some time, though, soaring more than 112% since January. During this time frame, the equity has enjoyed the support of its 10-week and 20-week moving averages, having not closed a week below this duo since March. What's more, NTAP tagged a fresh 52-week high in today's trading. If today's earnings reaction forces more bearish options traders to abandon their positions, NTAP should have plenty of fuel to extend its rally over the intermediate-term.

Call traders pounced on Excel Maritime Carriers Ltd. on Wednesday, as the shipping issue was one of the Street's top single-session performers. The stock saw more than 10,500 calls cross the tape - almost quadrupling its average daily call volume, and about seven times the number of EXM puts traded.

The at-the-money 8 strike was most active in both the November and December series, as investors prepare for front-month options expiration tomorrow. The November 8 call saw roughly 3,100 contracts change hands, while the December 8 call saw about 2,300 contracts traded. The soon-to-be front-month December 8 strike remains most popular among call traders today, with almost 1,650 contracts exchanged so far.

Option traders' preference for calls is further echoed by EXM's Schaeffer's put/call open interest ratio (SOIR) of 0.49, which suggests that calls more than double their put counterparts among options slated to expire within three months. What's more, the stock's SOIR stands only two percentage points shy of an annual optimistic acme, indicating that short-term speculators have been more bullishly biased toward EXM only 2% of the time during the past year.

On that same note, the equity's 10-day call/put volume ratio on the International Securities Exchange (ISE) rests at an annual high of 88.33. In other words, during the two weeks, option players on the ISE have bought to open more than 88 times as many EXM calls as puts.

At last check, EXM has pared most of yesterday's gains, surrendering 9.5% to linger in the $7.60 neighborhood.

Call speculators swarmed Monsanto Company on Wednesday, after CNBC's Jim Cramer issued bullish comments on the agricultural sector. During the course of the session, the equity saw roughly 30,700 calls cross the tape - more than doubling its average daily call volume, and tripling the number of MON puts traded.

The soon-to-expire November 80 call attracted the most attention, with close to 10,300 contracts changing hands. Thirty-nine percent of the calls traded at the ask price, suggesting they were bought, compared to 35% traded at the bid, implying they were sold. However, call open interest at the November 80 strike depleted from about 9,200 contracts to fewer than 8,500 contracts overnight, indicating that a healthy portion of yesterday's volume consisted of pre-expiration liquidations.

During the past couple of weeks, speculators on the International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE) have been adding MON calls over puts at a rapid-fire pace. The stock's 10-day call/put volume ratio of 2.89 ranks in the 93rd annual percentile, implying that traders on the ISE and CBOE have bought to open MON calls at a faster rate only 7% of the time during the past year.

After yesterday's Booyah-related boost, the shares of MON have backpedaled 2.5% today to hang out in the $78 region. The stock is now battling its 60-week moving average, which contained the equity's rally attempts in August and September.

A-Power Energy Generation Systems, Ltd. has attracted attention in the options arena recently, after the firm inked a deal with a private-equity firm to build a new wind-energy turbine production and assembly plant in the U.S.

During the course of Wednesday's session, the security saw roughly 3,500 puts change hands, nearly seven times its average daily volume of fewer than 500 puts. On the flip side, the equity saw about 14,000 calls cross the tape - virtually 12 times APWR's average single-session volume of fewer than 1,200 contracts.

The stock's December 17.50 call was most active, with more than 7,000 contracts traded. Meanwhile, APWR's December 12.50 put was most popular, with close to 2,700 contracts exchanged. In fact, digging deeper into the data reveals that a healthy portion of the put and call activity was related.

Yesterday afternoon, a block of 6,500 December 17.50 calls - marked "spread" - traded at the ask price of $0.30, suggesting they were bought. At the same time, a block of 2,400 December 12.50 puts - also marked "spread" - traded at the bid price of $0.70, implying they were likely sold. As such, it appears a December 17.50 call buyer reduced his overall cost on the position by selling to open December 12.50 puts. More specifically, the bullish strategist cut his initial cost from $195,000 ([6,500 x $0.30] x 100) to only $27,000 ($195,000 - [2,400 x 0.70 x 100]).

After skyrocketing over the past few sessions, APWR has taken a respite today, giving back 4.7% to flirt with the $13.20 level.

Deere & Company was the focus of some heavy options trading yesterday, as more than 66,800 contracts changed hands. This jump in volume was more than three times the equity's average daily trading volume of 20,775 contracts, according to data from WhatsTrading.com. Meanwhile, 53% of the volume crossed the tape on the call side.

In the front three months of options, we find that an investor may have been rolling out an existing position ahead of November options expiration. The November 50 call shed roughly 1,200 contracts, while the December 55 call added more than 1,200 contracts.

Calls have been the option of choice on the security recently. The International Securities Exchange (ISE) has reported three calls purchased to open for every one put purchased to open during the past 10 trading sessions. This ratio of calls to puts is higher than 98.8% of those taken during the past year. In addition, the ISE/Chicago Board Options Exchange (CBOE) 10-day call/put volume ratio comes in at 4.61, which is higher than 99% of all those taken during the past year.

In addition, the Schaeffer's put/call open interest ratio for DE comes in at 1.01, which is lower than roughly two-thirds of the readings taken during the past year. In other words, options players have been more optimistically aligned toward the shares only one-third of the time during the past year.

Options trading was brisk on Advanced Micro Devices on Wednesday, as more than 110,200 contracts crossed the tape. This surge in volume was more than four times the equity's average daily trading volume of 27,430 contracts, according to data from WhatsTrading.com. In addition, 79.6% of the volume changed hands on the call side.

Drilling down on the action in the front three months of options, we find that the November 6 call shed 5,500 contracts. On the other hand, the December 6 put added 5,500 contracts and the December 8 call increased its open interest by 6,000 contracts.

Overall, the stock has seen an increase in put trading. The International Securities Exchange (ISE) 10-day put/call volume ratio comes in at 0.38, which is higher than 61% of all those taken during the past year. In addition, the Schaeffer's put/call open interest ratio for AMD comes in at 0.84, which is higher than 93% of all those taken during the past year. In other words, short-term options players have been more skeptical of the shares only 7% of the time during the past 12 months.

Wall Street also has its doubts. According to Zacks, four rate it a "buy," 14 give it a "hold," and three rate the shares a "sell."

Colgate-Palmolive was the center of some brisk options trading on Wednesday, as more than 87,400 contracts changed hands. This jump in volume was more than 16 times the equity's average daily trading volume, according to data from WhatsTrading.com. What's more, 72% of the volume crossed the tape on the call side.

Digging into the action in the front three months of options, we find that the November 85 put added more than 5,500 contracts, while the November 90 call increased its open interest by 4,500 contracts. In addition, the December 90 call added more than 5,500 contracts.

Call trading has dominated on CL recently. The International Securities Exchange (ISE) has reported 1.33 calls purchased to open for every one put purchased to open during the past 10 trading sessions. In addition, the ISE/Chicago Board Options Exchange (CBOE) reported a 10-day call/put volume ratio of 2.72, which is higher than 98% of all those taken during the past 12 months.

Meanwhile, the Schaeffer's put/call open interest ratio for CL comes in at 0.91, which is lower than 69% of all those taken during the past 52 weeks. In other words, short-term options speculators have been more optimistically aligned toward the shares only 31% of the time during the past 52 weeks.

Technically speaking, the shares of CL have gained more than 25% since the beginning of the year. The stock has been in steady uptrend since early April along the support of its 10-week moving average.

Trina Solar Limited is slated to take the earnings reins tomorrow, and put players have rushed the option pits ahead of the event.

During the past couple of weeks, speculators on the International Securities Exchange (ISE) have bought to open more TSL puts than calls, as indicated by the stock's 10-day put/call volume ratio of 1.50. This reading registers in the 80th annual percentile, suggesting that TSL puts have been flying off the ISE shelves at a much faster pace than usual lately.

Echoing that trend, the solar concern on Tuesday saw roughly 3,400 puts cross the tape, nearly tripling its average single-session volume of about 1,300 puts. A healthy portion of the volume consisted of fresh eleventh-hour bets ahead of front-month options expiration, as put open interest at the November 40 strike skyrocketed from fewer than 500 contracts to almost 1,700 contracts overnight.

As a result of the escalating demand for puts, TSL's Schaeffer's put/call open interest ratio (SOIR) also muscled higher overnight, from 1.03 to 1.09. Compared to similar readings taken in the past year, the stock's SOIR ranks in the 86th percentile. In other words, short-term option speculators have been more pessimistically aligned toward TSL only 14% of the time during the past year.

In early trading, TSL has already made the skeptics sweat, tagging a new 52-week high of $42.54 and extending its year-to-date advance of 341%.

Call traders targeted Patriot Coal Corporation on Monday, as the stock rallied to a new 52-week high. More specifically, the coal concern saw about 10,200 calls change hands - more than 2.5 times its average daily call volume, and nine times the number of PCX puts traded.

Most active was the equity's soon-to-expire November 14 call, which saw roughly 3,500 contracts cross the tape. The at-the-money 14 strike is now home to peak call open interest in the front-month series, with more than 5,500 contracts in residence. However, further investigation reveals that not all of the volume can be attributable to the bulls.

Yesterday afternoon, a block of 150 November 14 calls - marked "spread" - traded at the bid price of $0.42, suggesting they were sold. At the same time, an equal amount of November 15 calls - also marked "spread" - crossed at the ask price of $0.14, implying they were purchased. As such, it seems we've unraveled a short call spread on PCX, with one investor hoping for a short-term pullback from the shares.

The play was initiated for a net credit of $0.28 ($0.42 - $0.14), which represents the most the trader can possibly gain. In order to pocket the net credit, though, the investor needs PCX to finish at or below the sold 14 strike by November options expiration on Friday, rendering both the 14- and 15-strike calls worthless.

At last check, PCX has extended its quest for new highs, rallying as high as $14.73 before retreating to the $14.35 neighborhood.