Under Armour (NYSE: UA) is recently up $1.49 to $31.72. UA is scheduled to report Q2 EPS on July 29. Wedbush Morgan says "Expect in line Q2 results; checks suggest brand continues to perform despite challenging retail environment."

UA August call option implied volatility is at 75, puts are at 86, above its 26-week average of 54 according to Track Data, suggesting larger price movement. UA put volatility is higher than call volatility because UA is difficult to borrow.

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