Option update 7-26-07: BIDU volatility elevated on rally

Baidu.com Inc. (NASDAQ: BIDU) -- volatility Elevated as BIDU rallies 18% on 2Q performance. BIDU, a Chinese language internet search provider, is recently trading up $33.16 to $216.39. Thomas Weisel says, "Raising 12-month price target to $250. We remain positive on the long-term fundamentals of the paid search industry in China." BIDU August option implied volatility of 56 is above its 26-week average of 48 according to Track Data, suggesting larger risks.

Navistar International Corp. (NASDAQ: NAVZ) -- volatility stays Flat on Shareholder Rights Plan. NAVZ, a truck, bus and engine manufacturer, recently filed an 8-K that created a shareholder rights plan poison pill through July 23 2008. Wachovia said on July 24 2007, "according to documents filed with the SEC, an entity (Harbinger Capital Partners) has acquired approximately 14.3% of NAVZ." WB goes on to say "NAVZ management apparently believes its current share price is undervalued. We maintain our Market Perform and $70-73 valuation range." NAVZ over all option implied volatility of 47 is near its 26-week average according to Track Data, suggesting flat risk.

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