W.R. Grace (NYSE: GRA) closed at $26.18 Monday.

In a hearing scheduled for mid-January, GRA lawyers will attempt to persuade a Delaware bankruptcy judge to value worthless tens of thousands of claims stemming from lawsuits against GRA, which used asbestos for fireproofing products.

GRA February option implied volatility of 61 is above its 26-week average of 57 according to Track Data, suggesting slightly larger price risk.

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

Dow Chemical (NYSE: DOW), a diversified chemical company, is recently up $1.42 to $46.17 after Bloomberg confirmed DOW canceled an analyst meeting. DOW has been the frequent subject of private-equity takeover chatter and the cancellation is refueling the conjecture. DOW call option volume of 27,544 contracts compares to put volume of 5,011 contracts. DOW November option implied volatility of 36 is above a level of 28 from twenty minutes ago, according to Track Data, indicating traders positioning themselves for a higher share price.

W.R. Grace (NYSE: GRA), supplier of specialty chemicals & industrial applications, is recently up $1.12 to $30.06 on unconfirmed LBO chatter. GRA call option volume of 9,562 contracts compares to put volume of 724 contracts. GRA October 30 straddle is at $2.00. GRA November option implied volatility of 61 is above its 26-week average of 51, according to Track Data, suggesting traders are positioning themselves for a higher share price.

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