Options in Motion: Apple

The Russell 2000 iShares leads the list of most active options.
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The

Russell 2000 iShares

(IWM) - Get Report

topped the list of most active options Tuesday, with put buying in its October options notably heavy.

The October 66 puts have traded 28,000 times, and the October 67 puts have traded 14,000 contracts. The Russell 2000 ETF itself was down 55 cents, or 0.8%, to $67.14.

Altria Group

(MO) - Get Report

had call sellers and put buyers as the stock traded lower on the day. The September 70 puts traded 17,000 contracts, the January 60 puts traded 12,000 times, and the January 65 calls traded 11,000 times. The stock was down 31 cents, or 0.3%, to $71.62.

Apple Computer

(AAPL) - Get Report

saw a buyer of the October 47.50 puts 13,000 times. The puts were trading higher by 15 cents. The stock was down 74 cents, or 1.4%, to $50.66.

Best Buy

(BBY) - Get Report

had sellers of calls after the company released disappointing earnings. The October 47.50 calls have traded more than 10,400 contracts and were down $3.50 on the day. The October 50 calls had a seller of 4,000 contracts. The stock was down $5, or nearly 10%, to $45.35.

After a run-up Monday,

Google

(GOOG) - Get Report

had sellers of calls as the stock pulled back. The September 310 calls have traded 11,000 times, and the 3,500 of the September 300 calls changed hands. The September 320 calls were swapped 3,700 times. Shares of Google were down $2.06, or 0.7%, to $307.68.

General Motors

(GM) - Get Report

saw its January 2008 7.50 puts trade more than 10,000 contracts. This activity was most likely hedging taking place from the credit default market. The stock was up 5 cents, or 0.2%, to $32.76.

Following a small run-up due to Hurricane Katrina, volatility seems to have been sapped from the option market.

The CBOE Market Volatility Index, a measure of implied volatility based on the S&P 500 options that serves as a gauge of fear in the market, was recently up 6.1% to 12.36. Meanwhile, the CBOE Nasdaq Volatility Index, which measures the implied volatility of the Nasdaq 100, was down 1.33% to 14.96.

To view Mike Marino's video take on today's option action, click here.