OptionXpress Holdings Inc. (NASDAQ: OXPS) -- volume & volatility Elevated on renewed buyout speculation. OXPS is recently up $0.87 to $26.47 on renewed buyout speculation. OXPS call option volume of 3,911 contracts compares to put volume of 33 contracts. OXPS August option implied volatility of 47 is above its 26-week average of 39 according to Track Data, suggesting larger price fluctuations.

Select Comfort Corp. (NASDAQ: SCSS) -- calls active on unconfirmed Tempur Pedic International Inc. (NYSE: TPX) buyout speculation. SCSS, a personalized sleep product company, is recently up $0.15 to $17.49. TPX has been frequently mentioned as interested in acquiring SCSS assets over the last three years. SCSS has a market cap of $854 million with zero long term debt. SCSS had March quarterly 2007 revenue of $216 million. TPX has a market cap of $2.4 billion. SCSS call option volume of 3,011 contracts compares to put volume of 174 contracts. SCSS August option implied volatility of 42 is above its 26-week average of 39 according to Track Data, suggesting slightly larger price fluctuations.

Option volume leaders today are: Research in Motion (NASDAQ: RIMM) and Apple Inc. (NASDAQ: AAPL).

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

Cleveland-Cliffs (NYSE: CLF) -- calls bid up aggressively on heavy volume on buyout chatter. CLF, a producer of iron ore pellets, is recently up $1.75 to $75.30 on unconfirmed take over chatter. CLF has a market cap of $3 billion. CLF is expected to file its 1st quarter 2007 form 10-Q in early June. CLF May 75 calls have traded 105 times on transaction volume of 1,712 contracts above its open interest of 935 contracts. CLF May 75 calls are bid $1.70 above its theoretical value of $1.05. CLF May 80 calls have traded 69 times on transaction volume of 1,818 contracts above its theoretical value of 626 contracts according to Track Data. CLF May 80 calls are bid 45 cents above its theoretical value of 04 cents, suggesting hedging for upside risks.

Mosaic Co. (NYSE: MOS) -- volatility & volume Spikes on buyout Speculation. MOS, a producer & marketer of concentrated phosphate and potash crop nutrients, was spun out of Cargill in 2004. MOS is recently up $1.16 to $30.63. MOS is frequently mentioned as a take out target of Potash Corp. (NYSE: POT). MOS call option volume of 4,791 contracts compares to put volume of 643 contracts. MOS June option implied volatility of 48 is above its 26-week average of 36 according to Track Data, suggesting larger for upside price risks.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Advanced Micro Devices (NYSE: AMD), Apple Inc. (NADSAQ: APPL) and Mylan Labs (NYSE: MYL).

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