Options in Motion: McDonald's

McDonald's (MCD Quote) saw bullish option activity Wednesday after its shares were upgraded to outperform at Bear Stearns. More than 10,000 of the October 32.5 calls traded. The October 35 calls traded 2,100 times and were up 35 cents.

General Motors(GM Quote) had a buyer of the January 2006 30 puts more than 9,000 times as some investors are still uncertain about the outlook for U.S. automakers. The December 32.5 puts have traded over 2,000 contracts.

Alcoa (AA Quote) continued to see bearish activity after the company was downgraded yesterday to neutral at Prudential. The October 27.5 puts have traded 8,000 times on the day, which equals the open interest for that strike.

Online auction site eBay(EBAY Quote) saw October call buying and put selling. The 40 calls have traded 2,400 times and the 42.5 calls have traded more than 7,500 times. The 40 puts have exchanged hands 1,300 times.

In health care stocks, Nektar Therapeutics (NKTR Quote) had call buyers across the board on news that the FDA advisory panel will consider the marketing approval applications for Exubera. The September 20 and 22.5 calls have traded a total of 13,000 contracts. The October 17.5 puts were sold 3,000 times.

Intel(INTC Quote) had its September 25 calls trade 9,100 times and its September 25 puts trade 2,500 times.

Electronics for Imaging's(EFII Quote) call options rose sharply in light trading after the company raised its third-quarter earnings guidance. The September 22.5 calls were up almost 700% in early trading and the September 20 calls were up 30%.

Volatility continues to be muted in overall option trading.

The CBOE Market Volatility Index, which is based on the implied volatility of the S&P 500 options and is used as a gauge for fear in the market, was recently up 0.23% to 12.96. The CBOE Nasdaq Volatility Index, a measure of the implied volatility of the Nasdaq 100, was recently up 0.6% to 14.98.