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Dr Pepper Snapple Group, Inc. (NYSE:DPS) Shares of the manufacturer of a variety of non-alcoholic beverages rallied 2.45% at the start of the trading session, briefly touching a new 52-week high of $38.93. Bullish options players thirsty for continued appreciation in the price of the underlying stock purchased out-of-the-money call options in the May and June contracts. Near-term optimists picked up 1,300 calls at the May $40 strike for an average premium of $0.25 apiece. Investors long the calls make money if DPS shares jump 3.4% over the new 52-week high of $38.93 to surpass the average breakeven price of $40.25 by May expiration day. Buying interest spread to the June $40 strike where another 1,200 call options were purchased at an average premium of $1.14 per contract. Shares of the beverage maker must rally another 5.7% in order for June $40 strike call coveters to amass profits above the effective breakeven point at $41.14 by expiration day in June. The sharp increase in demand for call options on the stock lifted the overall reading of options implied volatility on DPS some 37.5% to 43.18% as of 10:45 am (NYSE:ET).

Mylan, Inc. (NASDAQ:MYL)Put options on the global pharmaceutical company engaged in manufacturing and distributing branded and generic drugs are in demand this morning with shares of the underlying stock lower by 1.50% to $20.29. Pessimistic options players anticipating continued share price erosion through June expiration purchased 6,000 in-the-money puts at the June $21 strike for an average premium of $1.00 each. Investors make money on the long put stance should Mylan’s shares slip beneath the average breakeven price of $20.00 ahead of expiration. Options investors picked up another 1,800 puts at the lower June $20 strike for an average premium of $0.65 apiece. Lower-strike put purchasers profit if shares of the drug distributor decline 4.6% to breach the average breakeven point to the downside at $19.35 by expiration day in June. Options implied volatility on Mylan is up sharply by 15.8% to 38.30% as of 10:50 pm (ET).

Lennar Corp. (NYSE:LEN) Early morning options activity on homebuilding company, Lennar Corp., appears to be the work of an investor taking profits off the table by closing out a bearish stance on the stock. Lennar’s shares are up 0.15% to $18.45 as of 10:50 am (ET). It looks like the options trader originally sold roughly 15,000 calls at the August $22.5 strike for a premium of $1.20 each back on May 4, 2010, when Lennar’s shares were trading at a volume-weighted average price of $19.88. Today, the investor decided to close out the short call position by buying back all 15,000 contracts for an average premium of $0.95 apiece. Net profits on the closing purchase amount to an average of $0.25 in premium per contract.

Source: Tuesday Options Brief: DPS, MYL & LEN