Motorola (NYSE: MOT) volatility flat into lower 2Q sales; former AT&T's David Dorman on Board.

• MOT says that "the company expects second quarter sales to be in the range of $8.6 billion to $8.7 billion. The company previously estimated that second quarter sales would be essential flat with first quarter 2007 sales of $9.4 billion."
  
• David W. Dorman, former Chairman and CEO of AT&T (NYSE: T), a member of the board of directors of MOT, is the top candidate to replace current MOT CEO and Chairman Ed Zander.
  
• Bear Stearns says "MOT misses again and falls behind Samsung; problems likely to extend into 2008."
  
• MOT overall option implied volatility of 29 is near 26-week average according to Track Data, suggesting non-directional price fluctuations.

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

First Solar (NASDAQ: FSLR) implied volatility elevated as FSLR rallies 14%.

• FSLR, a manufacturer of solar modules with an advanced thin semiconductor process that significantly lowers solar electricity costs, is recently up $15.20 to $111.57.
  
• FSLR announced five new customer agreements for a total of $1.3 billion.
  
• Cowen reiterated its Outperform rating on FSLR. Banc of America reiterated its Buy rating and raised its price target to $115.
  
• FSLR August option implied volatility of 66 is above its 21-week average of 52 according to Track Data, suggesting larger price risks.

Gamestop (NYSE: GME) calls active as GME rallies on unconfirmed takeover speculation.

• GME, a video game and entertainment software retailer, is recently up $0.80 to $42.35.
  
• Unconfirmed chatter is circulating that Amazon.com, Inc. (NASDAQ: AMZN) is looking into buying GME.
  
• GME call option volume of 4,846 contracts compares to put volume of 783 contracts. GME August option implied volatility of 43 is above its 26-week average of 36 according to Track Data, suggesting larger price risk.

Option volume leaders today are: ArvinMeritor, Inc. (NYSE: ARM), Apple Inc. (NASDAQ: AAPL) and Baidu.com, Inc. (NASDAQ: BIDU).

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

Hilton (NYSE: HLT) volatility and volume elevated prior to Blackstone paying $26 billion. HLT announced Blackstone Group (NYSE: BX) will acquire all the outstanding common stock of HLT for $47.50 per share. HLT closed at $36.05. I reported near the close of trading on 7/3/07 "option volume & volatility Elevated as HLT rallies 6%." HLT total volume of 32,490 contracts and HLT July option implied volatility of 39 was aggressive, above its 26-week average of 31 according to Track Data, suggesting larger risk.

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

Best Buy Inc. (NYSE: BBY) -- implied volatility suggests flat risk into EPS. BBY is expected to report EPS on 6/19. Goldman Sachs Group says "quarter likely light; still like longer-term." GS goes on to say "management can blunt the blow of choppy earnings by clarifying and rationalizing its capital allocation, deploying more of the firm's cash against buybacks, and reining in its diversification initiatives." BBY over all option implied volatility of 29 is near its 26-week average of 30 according to Track Data, suggesting non-directional risk.

MasterCard Inc. (NYSE: MA) -- implied volatility reflects low risk on litigation concerns. MA, a global payment solutions company, is recently trading down $2.02 to $141.63 on litigation concerns. MA July option implied volatility of 34 is below its 26-week average of 36 according to Track Data, indicating decreasing price fluctuations.

Option volume leaders today are: Neurochem Inc. (NASDAQ: NRMX), Apple Inc. (NASDAQ: AAPL) and General Motors Corp. (NYSE: GM).

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

MGM Mirage (NYSE: MGM) implied volatility Spike suggests more fluctuations on Kerkorian. MGM is recently up $18.12 to $81.02. Kirk Kerkorian's Tracinda announced its intention to enter negotiations with MGM to acquire Bellagio and City Center. MGM June option implied volatility of 41 is above a level of 29 from yesterday and above its 26-week average of 31 according to Track Data, suggesting larger risk.

Illinois Tool Works (NYSE: ITW) June calls active on takeover Speculation. ITW, a manufacturer of engineer products and specialty items, is recently up $1.29 to $53.30 on M&A chatter. ITW has a market cap of $28 billion with long term debt of $956 million. ITW Jan 55 calls have traded 192 times on transaction volume of 5,788 contracts, below its open interest of 12,792 contracts. ITW January 55 calls are bid .75 cents above its theoretical value of .60 cents according to Track Data, suggesting upside hedging.

Option volume leaders today are: Dendreon (NASDAQ: DNDN), Medtronic (NYSE: MDT), Elan (NYSE: ELN) and Corning (NYSE: GLW).

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

Amdocs Ltd. (NYSE: DOX) -- calls Active on higher implied volatility as DOX rallies on Chatter. DOX is a software & services holding company and has a market cap of $7.4 billion with long term debt of $450 million. DOX is recently up $1.23 to $36.78 on unconfirmed & renewed LBO chatter. FMD call option volume of 2,049 contracts compares to put volume of 177 contracts. DOX June option implied volatility of 31 is above its 26-week average of 27 according to Track Data, suggesting larger price risks.

First Marblehead (NYSE: FMD) -- calls active as traders hedge Wells Fargo (NYSE: WFC) chatter. FMD, a provider of outsourcing services for private and non-governmental education lending, is recently up $1.42 to $36.73. Unconfirmed speculation is circulating WFC is interested in purchasing FMD. FMD June option implied volatility of 46 is above its 26-week week average of 43 according to Track Data, suggesting slightly larger price risks.

Joy Global (NYSE: JOYG) -- call volume and volatility higher on renewed takeover chatter. JOYG is a manufacturer and service provider of surface and underground mining equipment. JOYG is recently up .99 to $53.22 on unconfirmed takeover chatter. Caterpillar Inc. (NYSE: CAT) is frequently mentioned as potential acquirer. JOYG call option volume of 2,213 contracts compares to put volume of 276 contracts. JOYG June option implied volatility of 50 is above its 26-week average of 42 according to Track Data, suggesting larger price fluctuations.

Option volume leaders today are: Yahoo Inc. (NASDAQ: YHOO), Elan Corp. (ADS) (NYSE: ELN), Apple Inc. (NASDAQ: AAPL) and Altria Group (NYSE: MO).

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

Hewlett-Packard (NYSE: HPQ) options suggests Flat Risk into EPS; HPQ near 6 ½ year high.

• HPQ is expected to report EPS of $0.68 cents on 5/16 according to Thomson First Call.
• SOLE says, "We remain positive on HPQ's ability to restructure, while holding and/or improving market share on HPQ's ability to restructure."
• HPQ May straddle is priced at $1.25. HPQ June option implied volatility of 25 is near its 26-week average according to Track Data, suggesting non-directional risk.

J.B Hunt Transport (NASDAQ: JBHT) calls volume and volatility Elevated on Takeover chatter.

• JBHT, a truckload, logistics and dedicated transportation services company, is recently up $0.41 to $28.73 on take over chatter.
• S&P's Rating Services lowered its long-term corporate rating on JBHT on 5/10/07 following JBHT's new $500 million share repurchase program announced on 5/2. JBHT has a market cap $4 billion.
• JBHT call option volume of 3,744 contracts compares to put volume of 19 contracts. JBHT June option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting upside hedging.

Option volume leaders today are: Amgen, Inc. (NASDAQ: AMGN), General Electric Co. (NYSE: GE), Apple Inc. (NADSAQ: AAPL) and Pfizer Inc. (NYSE: PFE).

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

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.

BEA Systems (NASDAQ: BEAS) -- option volume heavy on open as renewed Chatter circulates. BEAS is a leading supplier of middle-ware software. BEAS has a market cap of $4.5 billion with long term debt of $230 million. BEAS reported 2006 revenue of $1.199 billion. BEAS call option volume of 11,213 contracts compares to put volume of 578 contracts. BEAS has been frequently mentioned as an acquisition target for IBM (NYSE: IBM) and Oracle Corp. (NASDAQ: ORCL) over the last 18 months. BEAS June option implied volatility of 49 is above its 26-week average of 36 according to Track Data, suggesting larger price risk.

Dollar Thrifty Automotive (NASDAQ: DTG) -- options calm as DTG rallies on Speculation. DTG, a daily rental agency of vehicles, has a market cap of $1.1b billion. DTG is recently up $0.85 to $50 on M&A speculation. DTG over all option implied volatility of 25 is below its 26-week average of 28 according to Track Data, suggesting decreasing price risk.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Washington Mutual (NYSE: WM), Motorola, Inc. (NYSE: MOT) and Cisco Systems (NASDAQ: CSCO).

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

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

Stone Energy-(NYSE: SGY) implied volatility, volume & share price Rises. SGY, an independent oil and natural gas company based in Louisiana, will announce EPS on 5/8/07. SGY is recently up $1.79 to $31.72 on unconfirmed takeover speculation. EPL offered to purchase SGY for $52 cash on 5/25/06. On 10/12/06 EPL terminated its merger with SGY. SGY announced on 4/26/07 the SEC ended an informal probe of SGY's proven hydrocarbon reserves. SGY call option volume of 2,816 contracts compares to put volume of 32 contracts according to Track Data. SGY May option implied volatility of 50 is above a level of 31 from ten minutes ago (as of this writing) and its 26-week average of 30 according to Track Data, suggesting larger risk.

Ceridian-(NYSE: CEN) May option volatility increases as CEN rallies on chatter. CEN, an information services company principally in the human resource, transportation and retail markets, is recently up .91 to $35.03. TheDeal.com reported a deal for CEN could be near. CEN has a market cap of $4.93 billion, long-term debt of $83 million and cash & short term investments of $294 million. CEN reported 2006 revenues of $1.56 billion. CEN May option implied volatility of 35 is above its 26-week average of 26 according to Track Data, suggesting larger price risks.

Option volume leaders today are: Dendreon (NASDAQ: DNDN), Ford Motor Co. (NYSE: F), Citigroup (NYSE: C) and Motorola (NYSE: MOT).

Texas Instruments (NYSE: TXN) -- option implied volatility flat into 4/23 EPS & Outlook. TXN is expected to report EPS on 4/23. Bear Stearns has an Outperform rating on TXN. BEST says, "We maintain our positive stance on TXN based on our belief that the ASP pressure on TXN's wireless business will moderate in 2H07." TXN call option volume of 21,304 contracts compares to put volume of 4,455 contracts. TXN May option implied volatility of 28 is near its 26-week average according to Track Data, indicating non-directional price risks.

Option volume leaders today are: Google (NASDAQ: GOOG), Advanced Micro (NYSE: AMD), Amgen (NASDAQ: AMGN) and Intel (NASDAQ: INTC).

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

Jeffries Group (NYSE: JEF) -- implied volatility flat on heavy call volume on renewed chatter. JEF, an investment bank engaged in financial product execution services and asset management, is recently up $.41 to $27.91 on renewed speculative takeover chatter. Merrill Lynch (NYSE: MER) has been frequently mentioned as interested in JEF. Keefe Bruyette says we "maintain our Outperform rating as we believe JEF has done an excellent job diversifying, expanding and growing its existing businesses as well as entering new ones." JEF call option volume of 4,986 contracts compares to put volume of 393 contracts. JEF May option implied volatility of 33 is near its 26-week average according to Track Data, suggesting non-directional price risks.

Google Inc. (NYSE: GOOG) -- April straddle at $21.90 into 4/19 EPS & Outlook; indicates Risk. GOOG will report EPS after the close of trading on 4/19. Piper has a $630 price target on GOOG. GOOG call option volume of 22,964 contracts compares to put volume of 14,716 contracts. GOOG May option implied volatility of 32 is near its 26-week average of 34 according to Track Data, suggesting non-direction risk after EPS.

Option volume leaders today are: Yahoo Inc. (NASDAQ: YHOO), JPMorgan Chase & Co. (NYSE: JPM), NovaStar Financial (NYSE: NFI) and Intel Corp. (NASDAQ: INTC).

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

IBM (NYSE: IBM) April straddle suggests inline risk prior to EPS and Outlook.
IBM is recently up $0.83 to $95.76. IBM will report EPS on 4/17. Conccord Adams upgraded IBM to Buy and raised its price target to $115, saying "we expect strong overall top- and bottom-line performance for the quarter, driven by IBM's focus on expanding the Software business and higher utilization rates in the Service business." IBM April straddle is priced at $3.35, above its theoretical value of $1.75 according to Track Data, suggesting a $3 price move is possible.

Dendreon (NASDAQ: DNDN)option implied volatility and volume suggests continued price Risk.
DNDN is recently down $1.32 to $15.94. DNDN Provenge has a May 15th PDUFA date. On 3/29 the FDA Advisory Panel said DNDN's Provenge is safe for prostate cancer. Brean Murray say's "We reiterate our Sell rating and target price of $1.50, which is based on our lack of faith of PROVENGE approval." DNDN call option volume of 44,976 contracts compares to put volume of 40,024 contracts. DNDN May option implied volatility is above 200 according to Track Data.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Sallie Mae -- SLM Corp. (NYSE: SLM), Citigroup Inc. (NYSE: C) and Intel Corp. (NASDAQ: INTC).

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

Volatility Index S&P 500 Options-VIX down 1.47 to 13.06

Advanced Magnetics Inc. (NASDAQ: AMAG) April implied volatility at 73, May at 63 into 4/11 data. AMAG, a developer of superparamagnetic iron oxide nanoparticles used in pharmaceutical products, is recently up $1.49 to $63.10. Jeffries says "AMAG remains a top-pick ahead of upcoming P3 ferumoxytol data at the NKF meeting (April 11th, after the market close). Compared to FDA approved 4 iron products, we believe ferumoxytol has the potential to show superior safety, efficacy, and convenience." AMAG April option implied volatility of 73 is near its 26-week average according to Track Data, suggesting non-directional price risks.

Best Buy Co., Inc. (NYSE: BBY) April implied volatility of 36 suggests slight risk into 4/3 EPS. BBY is expected to report EPS of $1.52 on 4/3 according to Thomson Financial. Soleil Securities says "macroeconomic data has been varied over the last few months; several data sources suggest strength for the consumer electronics retailers. We therefore expect a solid quarter for BBY." BBY April option implied volatility of 36 is above its 26-week average of 32 according to Track Data, suggesting larger price risks.

Option volume leaders today are: Fremont General Corp. (NYSE: FMT), Dendreon Corp. (NASDAQ: DNDN), Google Inc. (NASDAQ: GOOG) and Advanced Micro Devices Inc., (NYSE: AMD).

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 up 1.99 to 15.98

Countrywide Financial Corp. (NYSE:CFC) implied volatility and put volume Aggressive on Hedging.

CFC, the largest U.S. home mortgage lender, is recently down $0.80 to $34.33. KBWI has an Underperform rating with a price target of $36 on CFC. CFC call option volume of 13,126 contracts compares to put volume of 22,720 contracts. CFC April option implied volatility of 69 is above last night's close of 52 and above its 26-week average of 35 according to Track Data, suggesting larger price fluctuations.

National City Corp. (NYSE:NCC) option implied volatility and put volume Elevated on Hedging.

NCC operates a banking network in Ohio, Illinois, Indiana, Kentucky, Michigan & Pennsylvania with total assets of $140 billion. NCC is recently down $0.76 to $36.35. KBWI has a Market Perform rating and $35 price target on NCC. NCC call option volume of 4,597 contracts compares to put volume of 6,780 contracts. NCC April option implied volatility of 24 is above its 26-week average of 20 according to Track Data, suggesting larger price fluctuations.