Cleveland Cliffs (NYSE: CLF) -- volatility suggests Risk on renewed Speculation; CLF at record. CLF, a producer of iron ore pellets, is recently up $2.38 to $80.26. CLF has been frequently mentioned as an M&A target. CLF has a market cap of $3.3 billion. CLF call option volume of 2,960 contracts compares to put volume of 783 contracts. CLF June option implied volatility of 49 is above its 26-week average of 37 according to Track Data, suggesting larger price fluctuations.

Pennsylvania REIT (NYSE: PEI) -- elevated implied volatility confirms buyout Speculation. PEI, with an investment focus on retail shopping malls and power and strip centers located in the Mid-Atlantic region of the U.S., is recently up $1.79 to $45.82. Take-over speculation is circulating on PEI this morning. PEI has a market cap of $1.66 billion with long term debt of $1.9 billion. PEI June option implied volatility of 39 is above its 22-week average of 20 according to Track Data, suggesting larger risk.

Option volume leaders today are: Qualcomm Inc. (NASDAQ: QCOM), Apple Inc. (NASDAQ: AAPL) and Biogen Idec Inc. (NASDAQ: BIIB).

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