Peabody Energy Corp. (NYSE: BTU) -- volume and volatility increases on renewed buyout chatter. BTU, the world's largest private-sector coal company, with 2006 sales of 248 million tons and $5.3 billion in revenues, is recently up $2.30 to $45.60 on unconfirmed and renewed buyout chatter. BTU's CEO Greg Boyce presented at the Lehman Brothers CEO Energy/Power Conference in New York City today. BTU call option volume of 8,070 contracts compares to put volume of 9,128 contracts. BTU September option implied volatility of 39 is above its 26-week average of 36 according to Track Data, suggesting larger price risks.

Massey Energy Corp. (NYSE: MEE) -- implied volatility of 52 is above the 26-week average of 45. MEE, the fourth largest coal company in the U.S. based on produced coal revenue, is recently up $1.44 to $22.24. MEE's Chairman & CEO Don Blankenship will present at the Lehman Brothers CEO Energy/Power Conference in New York City this afternoon.
MEE October option implied volatility of 52 is above its 26-week average of 45 according to Track Data, suggesting larger price fluctuations.

Consol Energy Inc. (NYSE: CNX) -- volatility Flat as CNX rallies on idling of mine. CNX is recently up $1.31 to $41.24. CNX announced it plans to idle its Mine 84 in Northern Appalachia because of the mine's inability to meet its targeted rate of return. Stifel Nicolaus has a Buy rating and $58 price target on CNX. STFL says, "we continue to favor CNX shares over most of its coal industry peers due to its strong coal reserve base, its favorable market position as the dominant Northern Appalachian coal miner, and its direct exposure to natural gas markets." CNX call option volume of 3,348 contracts compares to put volume of 386 contracts. CNX October option implied volatility of 41 is near its 26-week average according to Track Data, suggesting non-directional price risks.

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