Genzyme Corp. (NASDAQ:GENZ) – Options players took advantage of the sharp increase in options implied volatility on the world’s largest producer of enzyme-replacement therapies this morning by selling strangles in the May contract. Implied volatility on Genzyme jumped on news the U.S. Food and Drug Administration is mandating additional inspection of the firm’s facilities following contamination at its Allston Landing plant last June. The FDA is likely to require a third party inspection and review of the biotechnology company’s operations as well as possible payments to the government according to statements released by the firm. Genzyme’s shares are trading 5.10% lower as of 10:35 am (ET) to stand at $56.09. Short strangles dominated options trading patterns on the stock this morning as investors positioned for shares to trade within a specified range, and positioned to benefit from subsequent declines in options implied volatility, ahead of expiration in May. Investors sold approximately 5,000 puts at the May $52.5 strike for an average premium of $0.95 apiece in combination with the sale of about 5,000 calls at the higher May $60 strike for an average premium of $1.37 each. Gross premium pocketed by strangle-sellers amounts to $2.32 per contract. Investors keep the full amount of premium if Genzyme’s shares trade within the $52.50 to $60.00 range through expiration. Traders may also choose to walk away with profits at an earlier date if options implied volatility collapses lower and drags down premiums on both calls and puts. Stranglers can take advantage of subsequent declines in options implied volatility by buying back the strangle for less than the original amount of premium received today. Options implied volatility on Genzyme increased 18.57% to 29.14% in early trading.

Devon Energy Corp. (NYSE:DVN) – Call options on the independent energy company are in high demand this morning with options investors trading more than 14.5 call contracts for each single put option in play thus far in the session. Shares of the underlying stock are up 1.45% to $65.92 as of 10:45 am (ET). Traders purchased roughly 2,400 in-the-money call options at the April $65 strike for an average premium of $2.19 per contract. Devon’s shares must rally above the effective breakeven price of $67.19 before in-the-money call buyers start to accrue profits. Trading traffic is heaviest at the April $70 strike where 14,700 call options changed hands. It looks like investors purchased about 7,300 of the call options for an average premium of $0.78 apiece. Bullish traders holding these contracts profit if shares surge 7.4% from the current price to breach the breakeven point at $70.78 ahead of expiration day next month. Finally, super-bullish traders shelled out an average of $0.31 per contract to get long 1,400 calls at the higher April $75 strike. The spike in investor demand for options on Devon Energy boosted the reading of overall options implied volatility on the stock 8.2% to 31.93% as of 10:50 am (ET).

Adobe Systems, Inc. (NASDAQ:ADBE) – Shares of the world’s largest producer of graphic-design programs are trading 4.65% higher to $36.86 in the first half of the trading day. There are a number of catalysts for the current rally. Adobe’s forecast for second-quarter sales exceeded average analyst expectations, which followed the firm’s announcement it will introduce a new version of its most profitable software on April 12, 2010. Options implied volatility plummeted 19.7% to 24.94% on the news and investors populating the options field on the stock traded more than 2 call options for each single put in action. More than 19,000 contracts change hands on Adobe in the first 90 minutes of the trading session.

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