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.

Audio content provider Audible Inc. (NASDAQ: ADBL) on May 3 posted 1Q 2007 earnings that finally begin to generate some noise. The company has signed up 72,000 new members in 1Q 2007 alone, although most of these were through an introductory membership offer that does not generate substantial cash flow. Net revenue for for the quarter was up 28% to $25.3 million compared to 1Q 2006, and up 9% from 4Q 2006. More importantly, (though not as nice sounding in print) is that the net loss for 1Q 2007 was half of the net loss for 1Q 2006, $1.2 million in 1Q 2007 vs. net loss of $3 million in 1Q 2006.

In part, the net loss number is due to higher operating costs as Audible Inc. has contracted alliances with more and more content partners to offer audio entertainment, and also more educational programming. Distance education is the fastest growing segment of the post-secondary education market, and Audible Inc. is trying to become the audio education content provider of choice for many distance education programs. Among Audible's audio content affiliates are Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and XM Satellite Radio (NASDAQ: XMSR), as well as more than 420 other content providers of 130,000 hours of audio programming. Audio books and audio educational programming is a viable economic format, as partnerships with Apple show. Apple currently provides advertising for Audible and co-markets for new members.

Even given Audible's modest improvements, the stock would have been a decent investment. It is up over 20% this year. Patient value-investors may want to give Audible Inc. a once over in the near future before the stock begins to attract more attention. Since the beginning of the year, there have been a number of upgrades to buy.