Today, we have seen more than 7,500 April 70 calls change hands for 25 cents per contract, which was the asking price at the time (suggesting buying pressure). This compares to existing open interest of just 3,100. Breakeven for this particular strategy is $70.25, so the call buyer needs SHW to move nearly 7% higher by April 16 to put these calls in profitable territory.

Alcoa Inc. (AA) kicked off earnings season last night -- with mixed results -- but Intel Corp. (INTC) will mark the unofficial beginning of the tech earnings season when it reports after the close on Thursday. Analysts are expecting per-share earnings of 30 cents, a wide improvement over the fourth quarter of 2008, when Intel banked four cents per share.

Although January options do not expire until Friday (the day after Intel reports), some option traders chose to scoop up call positions in the February series during Monday's trading. These later-dated options provide a little more time value and a few more weeks for Intel to make a move.

Aloca (NYSE: AA) kicked off earnings season a couple of weeks ago, and option players are now bulled up and looking slightly longer-term. The near-the-money December 13 calls are active today, with nearly 8,000 contracts trading versus open interest of just 997.

One block of 4,450 contracts changed hands around 10:00 a.m., trading near the ask price at 69 cents per contract ($445,000 for the entire block). It is likely these were bought to open.

Also active in AA are the January 14 calls, where nearly 33,000 contracts have traded on open interest of 18,000. A couple of large blocks changed hands before 11:00 a.m., trading at the ask price as well, also indicative of buying.

While this isn't necessarily excessive volume for AA, it is notable that the shares have jumped nearly 8% today on little news, and this has spurred some call-buying activity right out of the gate. As the U.S. dollar has been gaining ground over the past few days, commodities have weakened. Today's stock and call-buying activity could be a sign that some investors are calling for a short-term bottom in the commodity group.

Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.

After the opening bell, Nike (NYSE: NKE) will be reporting first-quarter earnings results. Analysts are looking for per-share results of 97 cents and revenue of $4.9 billion. Check out Michael Fowlkes' earnings preview for a complete look at this report.

On Monday, option players waved a bullish flag ahead of Nike's results, trading nearly 6,000 contracts at the October 65 strike. With the stock trading at $59.22, this front-month option (expiring in about two-and-a-half weeks) is out-of-the-money by nearly 10%. Open interest expanded from 2,696 to 7,116, meaning that most of these traded to open. The majority were in fact bought to open, trading for about 35 cents apiece.