Option update 8-10-07: Echelon (ELON) volatility elevated after sharp 2-week rally

ELON, a company that provides monitoring products and systems that can save energy and lower costs, was recently up $2.82 to $29.11. ELON was a $20 stock on 8/1. On 8/8 Nollenberger Capital downgraded ELON to Neutral from Buy based on valuation. ELON September call option implied volatility was at 83; puts are at 93, above its 26-week average of 51 according to Track Data, suggesting larger risk. Puts are bid higher than calls because ELON is difficult to borrow short.

Baker Hughes Incorporated (NYSE: BHI) put volume and volatility elevated:

BHI is engaged in the oilfield service sector. BHI was recently up 70 cents to $80.11. BHI has a market cap of $25.6 billion with long term debt of $1 billion. BHI call option volume of 3,488 contracts compares to put volume of 11,120 contracts. BHI August 80 straddle is at $6. BHI September option implied volatility of 43 is above its 26-week average of 29 according to Track Data, suggesting larger risk

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