JetBlue Airways (NASDAQ: JBLU) -- option prices not reflecting takeover Speculation. JBLU is recently up $0.54 to $10.89 on unconfirmed takeover speculation. JBLU named Dave Barger President & CEO officer this morning; founder David Neeleman will continue to serve as Chairman. JBLU June option implied volatility of 42 is near its 26-week average according to Track Data, suggesting larger price risks.

Electronic Data Systems (NYSE: EDS) -- implied volatility stays Elevated after EPS; suggests risk. EDS is recently trading at $28.07. EDS reported 1st quarter revenue of $5.2 billion on 5/3. EDS June 30 calls have traded 40 times on transaction volume of 1,858 contracts. EDS June 30 calls are bid 45 cents above its theoretical value of 25 cents. EDS June option implied volatility of 28 is above its 26-week average of 23 according to Track Data, suggesting larger near-term risk.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), General Motors (NYSE: GM), Whole Foods Market (NADSAQ: WFMI) and Intel Corp. (NASDAQ: INTC).

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

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

Volatility Index S&P 500 Options-VIX down .37 to 9.97.

Qualcomm Inc. (NASDAQ:QCOM) option implied volatility is low as suggesting reduced Risk

Qualcomm is recently up $1.83 to $39.90. Traders are adjusting their positions on Qualcomm managements litigation/negotiations with Nokia Corp. (NYSE:NOK) and trends for CDMA/3G heading into 2007. American Technology Research reiterated its Buy rating on QCOM this morning. QCOM call option volume of 71,230 contracts compares to put volume of 27,416 contracts. QCOM April option implied volatility of 32 is below its 26-week average of 35 according to Track Data, suggesting non-directional risks.

Network Appliance Corp. (NASDAQ:NTAP) Feb options indicate risk into EPS, March suggests less risk

Network Appliance, a provider unified storage solutions, is expected to report EPS of $0.28 after the close tonight. Morgan Keegan has an Outperform rating on Network Appliance. NTAP February 37.5 straddle is priced at $2.05, above its theoretical value of $1.08. NTAP March option implied volatility is at 30, below its 26-week average of 37 according to Track Data, suggesting decreasing price risks.

Option volume leaders today were: U.S. Steel Corp. (NYSE: X), Apple Inc. (NASDAQ:AAPL), Ford Motor Corp. (NYSE: F), Alcoa Inc. (NYSE: AA), Garmin Ltd. (NASDAQ-GRMN) and Google Inc. (NASDAQ: GOOG).