Your daily options trading wrap up.

Bullish flow detected in Quicksilver Resources (NYSE: KWK), with 9069 calls trading, or eight-times its recent average daily call volume.

Bullish flow detected in MEMC Electronic Materials (NYSE: WFR), with 13,918 calls trading, or two-times its recent average daily call volume.

Increasing volume is also being seen in Pfizer (NYSE: PFE), Hovnanian (NYSE: HOV), and CBS (NYSE: CBS).

Sentiment

Stocks are broadly higher on upbeat stock news and economic data Tuesday. Manufacturing numbers came into focus early after the ISM Index for January showed an increase to 60.8. Economists were expecting it to stay flat at 58.5. Meanwhile, Pfizer shares are trading up 5.5% among the best gainers in the Dow Jones Industrial Average after posting better than expected fourth quarter profits and announcing a share buyback. Baidu.com (NASDAQ: BIDU), Archer Daniels Midland (NYSE: ADM), and BP (NYSE: BP) are also seeing post-earnings gains. Ford (NYSE: F) and GM (NYSE: GM) are up on monthly auto and truck sales numbers. The Dow Jones Industrial Average has added 143 points and the tech-heavy NASDAQ gained 52. The CBOE Volatility Index (VIX) is up 1.83 to 17.70. Trading in the options market is very active Tuesday. With an hour left to trade, 10.3 million calls and 6.4 million puts traded so far.

Bullish Flow

Investors are sizing up Citi (NYSE: C) calls with 543,000 contracts traded, which is only 84% the usual, but compares to put volume of 137,000 contracts. The C Feb 5 Call is today’s second most actively traded options contract with 153,000 traded. The Weeklys (expiring Feb 4) are seeing action as well. 89,170 traded (99% on the offer). Shares are up 7 cents to $4.89 and the contract is 11 cents out-of-the-money with three days of life remaining. Open interest is only 2,704. Some investors might be opening positions in anticipation of Citi’s presentation tomorrow at a Morgan Stanley conference. The C Weekly 5.5 Calls have also seeing unusual interest, with some investors apparently paying a penny to open new positions. Meanwhile, implied volatility in Citi options is up 3% to 29.

Focus Media (NASDAQ: FMCN) adds $1.54 to $26.45 and options action is picking up in Feb, Mar and April 28 calls after Goldman Sachs upgraded the stock to Conviction Buy List from Buy before the open. 2,180 calls and 270 puts traded early in the day, or 18 times the typical volume for the first 30 minutes of trading.

Bearish Flow

The top options trades so far today are in the SPDR S&P 500 Trust (NYSE: SPY). Spyders have climbed $2 higher, to $130.68, and the SPY Feb 121 – 130 Put Spread trades at a $1.38, 50,000 times on the Chicago Board Options Exchange. It was part of a purchase of 70,000, according to a source on the exchange, and probably a short-term hedge. Feb options expire in 17 days.

Implied Volatility Mover

Baidu.com implied volatility (IV) is easing, as shares rally around earnings news. BIDU is up $10.28 to $118.91 and heading to session highs into the final hour of trading. 113,000 calls and 82,000 puts traded. BIDU Weekly (Feb 4) Calls at the 120 line are the most actives with 10,915 changing hands, as some players appear to be opening new positions in anticipation of additional gains through the end of the week. Feb 115 and 120 calls are actively traded as well. The Mar 90 is the most actively traded put. Implied volatility is down 26.5% to 33.5, compared to a 52-week high and low of 66 and 33. The 120 day SV is 35.1%; the 20 day is 24%.

Frederic Ruffy is the Senior Options Strategist at Whatstrading.com, a site dedicated to helping traders make sense of the complex and fragmented nature of listed options trading.