InterDigital (NASDAQ: IDCC) closed at $27.96. IDCC is scheduled to report Q2 EPS after the market close on July 28. August option implied volatility is at 62; September is at 53; near its 26-week average of 58; according to Track Data, suggesting decreasing price movement after EPS.

Rockwell (NYSE: ROK) closed at $39.61. ROK is expected to report Q3 EPS before the market open on July 30. ROK August option implied volatility is at 57, October is at 45; below 26-week of 59 according to Track Data, suggesting decreasing price movement after EPS.

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

InterDigital (NASDAQ: IDCC - option chain) shares opened higher today after the company announced it has resolved its patent dispute with Samsung Electronics Co. Under the agreement, IDCC has granted Samsung a license that covers 3G wireless handsets through 2012. The license allows IDCC to collect royalties from Samsung. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on IDCC.

IDCC opened this morning at $28.10. So far today the stock has hit a low of $25.35 and a high of $28.98. As of 12:35, IDCC is trading at $28.98, up 0.29 (1.1%). The chart for IDCC looks neutral.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $15 range.

No matter what your business, it pays to be a patent holder. In the lucrative wireless telecommunications field, it is a very good thing indeed. There is a suburban Philadelphia outfit that ranks with the industry movers and shakers, by virtue of solid demand for its patented wireless technology designs.

InterDigital (NASDAQ: IDCC) develops and licenses circuitry designs, software and other advanced wireless technologies that drive voice and data communications. The firm is a leading contributor to global wireless standards. It holds a strong portfolio of patented technologies, which it licenses to manufacturers of 2G, 2.5G, 3G, and 802 products worldwide. Alcatel-Lucent (NYSE: ALU) and Qualcomm (NASDAQ: QCOM) are competitors.

InterDigital pleased investors last week, when it guided Q3 revenues to about $55.5-$56.5 million. That was up from previous guidance of $53.5-$54.5 million and topped the consensus Street view of $54.68 million. Management also announced that it had signed a seven-year licensing agreement to provide technology for Apple's (NASDAQ: AAPL) iPhone. Boenning & Scattergood subsequently reiterated its "market outperform" rating on the issue and boosted its price target to $37.

InterDigital (NASDAQ: IDCC) volatility elevated as IDCC rallies off lows on contract win.

IDCC, a designer, developer and provider of wireless technologies, is recently up nearly 13% or $2.75 to $23.96. IDCC signed a seven-year licensing agreement with AAPL on 9/6/07. IDCC has customer licensing agreements with LG, NEC, Sharp, Panasonic, NOK & Sony-Ericsson. IDCC call option volume of 5,379 contracts compares to put volume of 222 contracts. IDCC September option implied volatility of 65 is above its 26-week average of 42 according to Track Data, suggesting non-directional price fluctuations.

Palm (NASDAQ: PALM) October volatility elevated into early October EPS.

PALM is recently down $0.25 to $15.32. PALM is expected to announce EPS on 10/1. PALM is developing a new handset operating system for its Treo product line. The new operating system is expected to be out in late 2008. PALM announced a strategic recapitalization with Elevation Partners on 6/4/07. PALM option implied volatility of 47 is above its 26-week average of 38 according to Track Data, suggesting larger risk.

Krispy Kreme Doughnuts (NYSE: KKD) volatility elevated as KKD trades near historic lows.

KKD operates and franchises 300 doughnut shops with over $450 million in revenue. KKD is down over 27% $1.73 to $4.60. CIBC says, "downgrading to Sector Underperform from Sector Performer on Flagging sales and liquidity concerns." KKD call option volume of 682 contracts compares to put volume of 1,465 contracts. KKD October option implied volatility of 69 is above its 26-week average of 45 according to Track Data, suggesting larger risk.

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