Comcast (NASDAQ: CMCSA) recently down 12c to 20.43. Goldman says: "We believe that it is likely that CMCSA submits a bid in the 700 MHz auction by the 12/3 deadline, either by itself or with a partner(s) because it is a long term imperative." CMCSA December and January option implied volatility of 27 is below its 26-week average of 32 according to Track Data, suggesting decreasing risk.

King Pharma (NYSE: KG) is recently up 37c to $10.71 on renewed buyout chatter. KG December 12.5 calls have traded 103 times on transaction volume of 4,259 contracts, above its open interest of 796 contracts. KG December & January option implied volatility of 65 is above its 26-week average of 43 according to Track Data, suggesting option traders expect KG to trade above $12.75 in the next three weeks.

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