Chesapeake Energy (NYSE-CHK), a producer of natural gas, is recently trading at $18.25 in pre-open trading, above its close of $16.52. Mcclendon Aubrey Kerr, Chairman of CHK, sold 31,522,923 shares at $18.06 for $569,326,055 from October 8 to October 10. CHK will host an analyst meeting on October 15. CHK's Natural Gas futures are recently up 1.90% to $6.659 according to Bloomberg. CHK November option implied volatility of 198 is above its 26-week average of 57 according to Track Data, suggesting larger price movement.

Lloyds TSB Group (NYSE-LYG), Royal Bank of Scotland Group Plc (NYSE-RBS) and HBOS Plc will get a $64 billion bailout from the U.K. government. LYG over all option implied volatility of 111 according to Track Data, suggesting large price movement.

Banco Santander (NYSE-STD) closed at $12.34. STD confirmed it's in talks to acquire full control of Sovereign - (NYSE-SOV). STD has a 24.9% stake in SOV and three seats on the board. STD November option implied volatility of 104 is above its 26-week average of 43, suggesting larger price movement.

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