Option update 7-10-07: Allegheny Tech-ATI volatility increases

Allegheny Tech's (NYSE: ATI) volatility increases on vague buyout chatter. ATI is a diversified specialty metals producer with revenues of $4.9 billion in 2006. ATI is recently up .25 to $107.80. ThyssenKrupp has been frequently mentioned as interested in specialty metal producers. ATI has market cap of $10.9 billion. ATI call option volume of 14,650 contracts compares to put volume of 3,172 contracts. ATI July & August option implied volatility of 40 is above its 26-week average of 37 according to Track Data, suggesting larger price risks.

Tesoro-(NYSE-TSO) volatility & volume higher on renewed takeover Speculation. TSO, an independent refiner and marketer of petroleum products, is recently up .88 cents to $60.27 on renewed takeover speculation. WTI Crude oil futures are down .35% to $71.94 according to Bloomberg. TSO call option volume of 6,779 contracts compares to put volume of 637 contracts. TSO July & August option implied volatility of 42 is above its 26-week average of 35 according to Track Data, suggesting larger price risks.

Option volume leaders today are: Home Depot (NYSE: HD), Alcoa (NYSE: AA) and Verisign (NASDAQ-VRSN).

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