After the opening bell, Nike (NYSE: NKE) will be reporting first-quarter earnings results. Analysts are looking for per-share results of 97 cents and revenue of $4.9 billion. Check out Michael Fowlkes' earnings preview for a complete look at this report.

On Monday, option players waved a bullish flag ahead of Nike's results, trading nearly 6,000 contracts at the October 65 strike. With the stock trading at $59.22, this front-month option (expiring in about two-and-a-half weeks) is out-of-the-money by nearly 10%. Open interest expanded from 2,696 to 7,116, meaning that most of these traded to open. The majority were in fact bought to open, trading for about 35 cents apiece.

Only two and half of the next six days will be trading days. The time value of an option's premium, which the option holder has "purchased" when paying for the option, decreases with the passage of time. With the market closed in three and half of the next six days, long option premium positions have less time to move to a profitable outcome.

Volatility Index S&P 500 Options - VIX at 44.56; 10-day moving average is 52.04.

Volatility Index NASDAQ 100 - VXN at 41.90; 10-day moving average is 49.87.

NASDAQ 100 - QQQQ overall implied volatility at 44; 26-week average is 46 according to Track Data.

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

Solarfun Power (NASDAQ: SOLF) is scheduled to report Q1 EPS on May 21.

SOLF, a manufacturer of PV cells and PV modules, closed at $22.84 Friday.

SOLF June option call implied volatility is at 123, puts are at 134; above its 26-week average of 96 according to Track Data, suggesting larger price risk.

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

Best Buy (NYSE: BBY) closed at $42.27 Thursday.

BBY is scheduled to report Q4 EPS on April 2.

RBC Capital says: "Lowering estimates; remain concerned about broader consumer spending picture."

BBY April option implied volatility of 50 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

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

Merrill Lynch (NYSE: MER) closed at $41.18. Wachovia Securities says, "MER is the riskiest of the remaining monocline banks. MER had gross sub-prime CDO exposure of $30.4 billion, 3.3x the group average. MER also had the worst liquidity ratio at 52%." MER April option implied volatility of 107 is above its 26-week average of 45 according to Track Data, suggesting larger risk. MER implied volatility is near a level attained in October of 1987.

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

ExxonMobil (NYSE: XOM) implied volatility near average as oil trades above $82.

XOM closed at $91.76. Crude oil futures were up 0.79% to $82.15 according to Bloomberg. XOM overall option implied volatility of 26 is near its 26-week average of 24 according to Track Data, suggesting non-directional price fluctuations.

Chevron (NYSE: CVX) implied volatility near average as oil trades above $82.

CVX is an integrated energy company with a market cap of $198 billion and quarterly June 2007 revenue of $56 billion. CVX closed at $93.34. Crude oil futures are up 0.79% to $82.15 according to Bloomberg. CVX overall option implied volatility of 25 is near its 26-week average according to Track Data, suggesting non-directional risks.

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

Trump Entertainment Resorts, Inc. (NYSE: TRMP) calls active at higher volatility on renewed chatter:

TRMP was recently up 39 cents to $7.06 on renewed and unconfirmed takeover chatter. TRMP announced on July 2nd that its board of directors ended talks with potential acquirers. TRMP call option volume of 1,439 contracts compared to put volume of 219 contracts. TRMP September option implied volatility off 97 was above its 26-week average of 56 according to Track Data, suggesting larger price fluctuations.

ConAgra (NYSE: CAG) October implied volatility elevated at 31 into earnings per share (EPS) announcement:

CAG confirmed previously issued EPS and sales for 2008 on Septebmer 6th. CAG is expected to report EPS in late September. CAG announced on September 5th that it would remove the flavoring chemical diacetyl in the manufacturing of its microwave popcorn. CAG call option volume of 6,815 contracts compared to put volume of 8,182 contracts. CAG October option implied volatility of 31 was above its 26-week average of 20, according to Track Data, suggesting larger risk.

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

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.

Yahoo! Inc. (NASDAQ: YHOO) implied volatility up on expectations of Alibaba, Yang & EPS.

YHOO is recently trading $22.58. Recently, Alibaba.com, China's largest e-commerce company, hired NM Rothschild to advise it on a stock listing. YHOO has 40% ownership stake in Alibaba. YHOO is expected to report EPS on 10/16. YHOO over all option implied volatility of 38 is above its 26-week average of 35 according to Track Data, suggesting larger movement.

Rediff.com India Limited (ADR) (NASDAQ: REDF) volatility elevated as REDF trades near 52-week lows.

REDF, a provider of online consumer offerings, is recently up 30 cents to $15.07. REDF over all option implied volatility of 59 is above its 52-week average of 51 according to Track Data, suggesting larger price fluctuations.

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

Apple (NASDAQ: AAPL) implied volatility up into expected new family of iPod launch on 9/5.

AAPL is recently up $3.03 to $129.85 in pre-open trading. Goldman Sachs says, "Buy AAPL shares as new iPods add to its product cycle story." AAPL overall option implied volatility of 45 is above its 26-week average of 41 according to Track Data, suggesting slightly larger price movement.

Nokia (NYSE: NOK) volatility at 36 as NOK introduces four devices; NOK near 6-year high.

NOK introduced four devices optimized for entertainment, music and games. NOK closed at $30.01. OPCO says, "reiterate Buy – announces attractive multimedia products." NOK over all option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting slightly larger price risk.

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

VeriSign (NASDAQ: VRSN) option implied volatility flat at 36.
VRSN provides intelligent infrastructure services for the internet and telecommunications networks. VRSN will report its EPS on 11/1/07 and has an analyst day on 11/14. VRSN closed at $29.80. VRSN over all option implied volatility of 36 is near its 26-week average according to Track Data, suggesting non-directional risks.

IBM (NYSE: IBM) implied volatility of 29 above 26-week average of 20.
IBM closed at $109.22. IBM over all option implied volatility of 29 is above its 26-week avearge of 20 according to Track Data, suggesting larger price risks.

Microsoft (NASDAQ: MSFT) implied volatility of 28 above 26-week average of 22.
MSFT closed at $28.27. MSFT over all option implied volatility of 29 is above its 26-week average of 22 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX at 26.32; 10-day moving average is 26.98.

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

Ann Taylor Stores (NYSE: ANN) implied volatility Increases to 50 into EPS. ANN is expected to report EPS on 8/24. BUCK says "we continue to project a recovery in the back half of the year." ANN September option implied volatility of 50 is above its 26-week average of 33 according to Track Data, indicating larger risk.

Abercrombie & Fitch (NYSE: ANF) volatility of 49 above 26-week average of 33 into EPS. ANF is recently up $2.18 to $74.92. ANF is expected to report EPS of .87 cents on August 22nd according to Thomson First Call. ANF has a market cap of $6.6 billion. Freidman Billings say's "Upgrading to Outperform; High-Quality name to weather Turbulent Times." ANF September option implied volatility of 49 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options down .84 to 29.99.

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

Yahoo! (NASDAQ: YHOO) implied volatility elevated at 40. YHOO is recently down 37 cents to $22.95. YHOO overall option implied volatility of 40 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

Microsoft (NASDAQ: MSFT) implied volatility elevated at 40. MSFT is recently down 19 cents to $27.91. MSFT overall option implied volatility of 40 is above its 26-week average of 23 according to Track Data, suggesting larger risk.

Amgen (NASDAQ: AMGN) implied volatility elevated at 34 after restructuring. AMGN is recently down $1.57 to $49.02. Goldman Sachs says: "Sales and costs in line. Maintain estimate and intrinsic value of $45." AMGN September option implied volatility of 34 is above its 26-week average of 26 according to Track Data, indicating larger risks.

Cisco Systems (NASDAQ: CSCO) implied volatility elevated at 34. CSCO is recently up 9 cents to $30.01. CSCO will be holding an analyst meeting on September 5 in San Jose. Jeffreies has a Buy rating on CSCO. CSCO September option implied volatility of 34 is above its 26-week average of 28 according to Track Data, suggesting slightly larger risk.

Volatility Index S&P 500 Options-VIX up 2.68 to 33.35.

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

Top Ten stocks with implied volatility above 105 with volume over 1,000 contracts: TMA, RAS, DFC, BZH, WCI, SPF, IMB, LEND, NFI & QLTI.

Hewlett-Packard (NYSE: HPQ) volatility Elevated into EPS & Outlook. HPQ is recently down $1.02 to $47.42. HPQ will report EPS on 8/16. American Technology say's "anticipate strong July quarter; despite outperformance, we remain buyers." HPQ August straddle is priced at $2.55. HPQ September option implied volatility of 36 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

Wal-Mart Stores, Inc. (NYSE: WMT) volatility above average as WMT trades near 1-year low. WMT is recently down $2.18 to $43.92. WMT reported 2nd quarter net sales increased 8.8% to $91.99 billion, income from continued operations increased 4.1% to $2.98 billion compared to the same period a year ago. Smith Barney says "in addition to the reduction in full-year guidance, management cited continued economic pressure on consumers, which we believe may pressure the stock in the near-term." WMT September option implied volatility of 24 above its 26-week average of 20 according to Track Data, suggesting larger risk.

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

Wal-Mart Stores Inc. (NYSE: WMT) -- volatility at four-year highs, suggesting larger fluctuations. WMT will report July sales on Thursday. WMT is expected to report EPS in mid-August. WMT overall option implied volatility of 26 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

Dell Inc. (NASDAQ: DELL) -- volatility up as DELL acquires technology for always-connected devices. DELL announced on Tuesday the acquisition of ZING Systems, a consumer technology and services company that focuses on always-connected audio and entertainment devices. MOKE says, "Yesterday's acquisition of Zing Systems by DELL may indicate that the computer manufacturer is closer to moving into the handset business." DELL is expected to report EPS in late August. DELL September option implied volatility of 34 is above its 26-week average of 26 according to Track Data, suggesting larger risk.

Daily options Update is provided by stock specialist Paul Foster of theflyonthewall.com.