Option update 4-9-07: BNI option implied volatility low into Buffett purchases

Burlington Northern Santa Fe Corp. (NYSE: BNI) -- implied volatility low; suggests less Risk as Buffett buys. BNI, an operator of 32,000 railroad route miles, is recently up $6.05 to $88.71. Form 4 filed with the SEC.gov revealed Warren Buffett holding company BRK purchased 1,646,900 shares worth $133.967,245 on 4/4/07-4/5/07. BNI May option implied volatility of 24 is below its 52-week average of 27 according to Track Data, suggesting larger price fluctuations.

Foot Locker Inc. (NYSE: FL) -- April 25 & May 25 calls trading on renewed & unconfirmed Chatter. FL, a footwear & apparel operator of 3,950 retail stores, is recently up $.28 to $23.85 on renewed & unconfirmed takeover chatter. FL April 25 calls have traded 62 times on transaction volume of 1,716 contracts, above its open interest of 1,300 contracts. FL May option implied volatility of 31 is near its 26-week average according to Track Data, suggesting slightly higher price risks.

The Volatility Index for S&P 500 Options (VIX) is up .04 to 13.27.

Option volume leaders today are: Dow Chemical Co. (NYSE: DOW), Intel Corp. (NASDAQ: INTC), Dendreon Corp. (NASDAQ: DNDN) and Research in Motion, Ltd. (NASDAQ: RIMM).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.