AK Steel Holding Corp. (NYSE: AKS), a flat-rolled carbon, stainless and electrical steel producer, is recently up $1.39 to $50.63. The DealReporter said several steel companies are interested in AKS according to sources. AKS is expected to report EPS on October 23. AKS call option volume of 15,243 contracts compares to put volume of 2,502 contracts. AKS October 50 straddle is priced at $3.75. AKS November option implied volatility of 60 is above its 26-week average of 51 according to Track Data, suggesting larger price risks.

Mechel Steel (NYSE: MTL), a Russian mining and metals company, is recently up $6.26 to $72.23 after reporting its operational results for nine months. MTL November option implied volatility of 55 is above its 26-week average of 43 according to Track Data, suggesting larger price risk.

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

Dendreon Corp. (NASDAQ: DNDN) -- implied volatility spikes as DNDN rallies on positive FDA results. DNDN is recently up $2.81 to $9.56. The FDA will accept DNDN's Provenge data for prostate cancer. DNDN June call option implied volatility is at 125, puts are at 138 according to Track Data, suggesting larger price fluctuations.

International Rectifier (NYSE: IRF) -- implied volatility increases on Speculation. IRF, a power technology company, is recently up 46 cents to $35. Dealreporter reported that industry sources say IRF is an excellent takeover candidate. IRF June option implied volatility of 39 is above its 26-week average of 34 according to Track Data, indicating larger price fluctuations.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Yahoo Inc. (NASDAQ: YHOO), Wal-Mart Stores (NYSE: WMT) and Google Inc. (NASDAQ: GOOG).

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