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Delta Petroleum Corp. (NASDAQ: DPTR) is trading a bit firm this morning considering yesterday’s atrocious news on a poor well drilling performance. Shares lost about 45% of their value yesterday on over an unbelievable 84 million shares of stock. As of 8:50 AM EST we have shares up 1.3% at $2.24 on over 500,000 shares. This is not much considering the magnitude of yesterday’s drop, but usually these huge downward moves are not met by immediate recovery. Average volume is now 7 million shares but that was about 4 million shares last week before it became a news trading stock again. Anything is possible and any newsw could change, but if the news and information stays static we’d look for this one to trade all over the place for a few days. -JON OGG
Airliners are seeing massive call option action today with Continental (NYSE: CAL) trading more than 7,700 October $18 calls with shares at $16.80; Delta (NYSE: DAL) trading more than 13,200 October $10 calls with shares at $9.35; and US Air (NYSE: LCC) trading more than 10,600 October $6 calls with shares at $5.18. Furthermore, JetBlue (NASDAQ: JBLU) October $7 calls are trading 10,900 October $7 calls with shares at $6.50. The trades have seen some very large blocks hit, and it may be a “shotgun approach” looking for consolidation in the airline industry, or just a bullish view as oil breaks below $70 a barrel and the airline companies seem to have seen the worst. Most of the airline stocks are at 52 week highs after jet fuel recently hit long time lows, which will improve margins plus the added benefit of a rebounding economy generating more air traffic and better fill rates on planes.
Joe Kunkle, OptionsHawk.com
11:00 AM EST
Amgen, Inc. (NASDAQ: AMGN) is seeing some positive action this morning. The biotech and drug maker announced Phase 3 trial results evaluating denosumab versus Zometa in advanced cancer patients with solid tumors or multiple myeloma showing that denosumab delayed skeletal related events (osteoporosis etc.). Shares are up over 2% at $62.20 on over 175,000 shares as of 8:52 AM EST. As this is already the leader here, the fallout may be limited in competitors. If you can believe it, Amgen is now within about 3% of its 52-week highs. -JON OGG
FormFactor Inc. (NASDAQ: FORM) is not a highly active stock by almost any measure for almost any stock exchange. It is also not an active stock in the realm of options trading. In our weekend review, this one stood out handily for a stock that has rarely, if ever, crossed our path for big weekend stock and options trading screens.    Yet we saw over 11,000 contracts trade hands on Friday, and it was sneaky because the trades were one-sided and all the way out to APRIL-2010 in the CALL options. Here are the trades in the APRIL-2010 CALLS:
CALL$Â Â Â Volume Op.Int.
20.00Â Â Â 6,880Â Â Â 25
22.50Â Â Â Â 125Â Â Â Â Â Â 25
25.00Â Â Â 5,592Â Â Â 96
What is odd is that those two trades were bigger than the open interest of all the seen CALL options from now until then combined. That even includes the SEPT-2009 options which expired.  This stock closed down 0.45% at $24.34 on 684,832 shares. That is barely above average of about 585,000 shares. Its market cap is $1.2 billion and the 52-week trading range is $11.36 to $26.08.
JON C. OGG