Front-month options action in Intel (NASDAQ: INTC)

The market does not expect Research in Motion (NASDAQ: RIMM) earnings figures until the beginning of April, and the stock climbed 96 cents to $66.50 during the first hour of trading. We saw a call seller in the LEAPS January 2012 95 calls. These options traded 3,000 times out of the gate, as a volatility play for an investor expecting the stock to see limited upside. Implied volatility is currently near 40, compared to a 30-day historical volatility of 43.

Intel (NASDAQ: INTC) shares climbed 26 cents to $21.22 during the first hour of trading, and the company is scheduled to announce earnings figures after the market closes tonight (analysts expect the company to announce 30 cents earnings per share). With just one day left to go before January options expire, one investor sold a straddle and looked for a quick premium expecting little movement in the company’s stock. The January 21 straddle traded roughly 10,000 times thanks to an investor who sold it for 91 cents per straddle. The January 21 straddle is currently trading at roughly 97 cents, meaning investors expect the stock to move a maximum of $1 before tomorrow’s close.

Union Pacific (NYSE:UNP) earnings are scheduled for Jan 21 before the market opens, and analysts expect the company to announce $1.04 EPS. The stock dropped 46 cents to $67.01 during the first hour of trading. Chief Investment Strategist Jud Pyle wrote about a collar trade in UNP, and we’re seeing the same action again out of the gate this morning. The May 62.5-67.5 put spread and the May 75 calls crossed the tape 3,900 times each thanks to an investor who bought the spread and sold the calls to protect against a potential decline in the stock.