The Dow gained 286 points to retake the ground lost Friday. Markets were still rattled about sub-prime and credit concerns, but there is hope going into the tomorrows Fed meeting that maybe the Fed will pay closer attention to the subject.

The NYSE had volume of 4.2 billion shares with 1,782 shares advancing while 1,551 declined for a gain of 183.14 points to close at 9,553.74. On the NASDAQ, 2.6 billion shares traded, 1,455 advanced and 1,626 declined for a gain of 36.08 to 2,547.33.

Fannie Mae (NYSE: FNM) jumped $5.87 (10%) to $62.50. CIT Group (NYSE: CIT) fell $2.30 (-6%) to $34.38. Intuit (NASDAQ: INTU) rose $2.16 (8%) to $30.26. Crocs, Inc. (NASDAQ: CROX) fell $3.49 (-6%) to $55.13. Countrywide Financial Corporation (NYSE: CFC) rose $1.75 (7%) to $26.75 as it reported access to $46 billion cash.

The most active calls were on the QQQQ's as investors are hopeful for a turnaround. PowerShares QQQ Trust ETF (NASDAQ: QQQQ) saw heavy volume on the August 48 calls (QQQHV) with over 82,687 options trading. The VIX set a new intraday high at 26.47. Likewise options were very active as investors worked to hedge risk in this market. CBOE S&P 500 Volatility Index (NASDAQ: $VIX) saw heavy volume on the August 25 calls (VIXHE) with over 45,877 options trading.

One of the most active sectors recently has been the financial area, with sub-prime concerns. Financial Sector SPDR ETF (NYSE: XLF) saw heavy volume on the September 35 calls (XLFII) with over 44,080 options trading. A couple of individual stocks that made are most active list include Cisco Systems (NASDAQ: CSCO) moved volume on the August 30 calls (CYQHF) with over 27,000 options trading. El Paso (NYSE: EP) saw heavy volume on the September 16 puts (EPUQ) with over 34,000 options trading. In options there were 7.7 million puts and 6.7 million calls traded for a put/call open interest ratio of 1.15
.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and/or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.