Option update 5-3-07: PPP spikes on strategic alternatives

Pogo Producing Co. (NASDAQ: PPP) volatility and share price spike on strategic alternatives.

• PPP is engaged in oil and gas exploration, development, acquisition and production activities.
  
• PPP announced in its earnings release on 4/24 "that its strategic alternatives process, which includes the possible sale or merger of PPP, the sale of its Canadian or other significant assets, and changes to the company's business plan, is ongoing."
  
• PPP is recently up $3.92 to $52.47. PPP call option volume of 2,746 contracts compares to put volume of 1,090 contracts. PPP May option implied volatility of 40 is above its 26-week average of 30 according to Track Data, suggesting larger price risks.

Armor Holdings (NYSE: AH) implied volatility suggests Flat risk as AH at record High

• AH, a manufacturer of tactical wheeled vehicles, has a market cap $2.5 billion with long-term debt of $419 million.
  
• AH reported 2006 annual revenue of $2.3 billion. AH is recently up $1.31 to $73.39.
  
• AH overall option implied volatility of 29 is near its 26-week average according to Track Data, suggesting non-directional risk.

Option volume leaders today are: Symantec Corp. (NASDAQ: SYMC), Cisco Systems, Inc. (NASDAQ: CSCO), Dendreon Corp. (NASDAQ: DNDN) and IBM (NYSE: IBM).

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