Option update 6-18-07: Yahoo up on unconfirmed chatter CEO is leaving

Yahoo! (NASDAQ: YHOO) implied volatility flat into EPS and unconfirmed chatter. YHOO is recently trading up $0.55 to $27.85. YHOO is expected to report EPS on 7/17. YHOO is frequently mentioned as a merger candidate with Microsoft (NASDAQ: MSFT) and upper level management changes. Unconfirmed chatter is circulating this morning that CEO Terry Semel may resign. YHOO option implied volatility of 34 is near its 26-week average according to Track Data, suggesting flat risk.

BEA Systems (NASDAQ: BEAS) volatility and July call volume elevated on renewed chatter. BEAS, a leading supplier of middleware software, is recently up 15 cents to $13.28. Unconfirmed chatter is circulating that Hewlett-Packard (NYSE: HPQ) having an interest in BEAS for $18.50 a share. ORCL and IBM have been frequently mentioned as interested in BEAS. BEAS will be at NXTcomm this week, a global forum of information, communications, entertainment and technology companies. BEAS July option implied volatility of 43 is above its 26-week average of 36 according to Track Data, suggesting larger risk.

Option volume leaders today are: Yahoo (NASDAQ: YHOO), Symantec (NASDAQ: SYMC) and Apple (NASDAQ: AAPL).

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