Peabody Energy Corp. (NYSE: BTU) -- volume and volatility increases on renewed buyout chatter. BTU, the world's largest private-sector coal company, with 2006 sales of 248 million tons and $5.3 billion in revenues, is recently up $2.30 to $45.60 on unconfirmed and renewed buyout chatter. BTU's CEO Greg Boyce presented at the Lehman Brothers CEO Energy/Power Conference in New York City today. BTU call option volume of 8,070 contracts compares to put volume of 9,128 contracts. BTU September option implied volatility of 39 is above its 26-week average of 36 according to Track Data, suggesting larger price risks.

Massey Energy Corp. (NYSE: MEE) -- implied volatility of 52 is above the 26-week average of 45. MEE, the fourth largest coal company in the U.S. based on produced coal revenue, is recently up $1.44 to $22.24. MEE's Chairman & CEO Don Blankenship will present at the Lehman Brothers CEO Energy/Power Conference in New York City this afternoon.
MEE October option implied volatility of 52 is above its 26-week average of 45 according to Track Data, suggesting larger price fluctuations.

Consol Energy Inc. (NYSE: CNX) -- volatility Flat as CNX rallies on idling of mine. CNX is recently up $1.31 to $41.24. CNX announced it plans to idle its Mine 84 in Northern Appalachia because of the mine's inability to meet its targeted rate of return. Stifel Nicolaus has a Buy rating and $58 price target on CNX. STFL says, "we continue to favor CNX shares over most of its coal industry peers due to its strong coal reserve base, its favorable market position as the dominant Northern Appalachian coal miner, and its direct exposure to natural gas markets." CNX call option volume of 3,348 contracts compares to put volume of 386 contracts. CNX October option implied volatility of 41 is near its 26-week average according to Track Data, suggesting non-directional price risks.

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

AutoZone, Inc. (NYSE: AZO) implied volatility elevated into mid September earnings per share (EPS) and outlook: AutoZone is expected to report earnings per share on September 18. AZO management will be speaking at Goldman Sachs Group, Inc. (NYSE: GS) 14th Annual Retailing Conference on September 6. AZO September option implied volatility of 36 is above its 26-week average of 25, according to Track Data, suggesting larger price risks.

Cisco Systems, Inc. (NYSE: CSCO) implied volatility flat into September 5 analyst meeting: Cisco is recently up 40 cents to $31.83. CSCO will be holding an analyst meeting in San Jose, CA, on September 5. BAMO says, "we believe the meeting will be used to showcase CSCO's growing technology platform and emphasize the company's mantra of the network as the IT platform." CSCO September option implied volatility of 26 is near its 26-week average of 28, according to Track Data, suggesting non-directional risk.

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

Juniper Networks (NASDAQ: JNPR) option volatility Elevated at 43 into 9/6 investor meeting. JNPR, a provider of internet infrastructure solutions to internet service providers and other telecommunication services providers, is recently down .04 to $32.74. JNPR will host an investor gathering in Sunnyvale, CA. on 9/6. Bank of America-BAMO says, "We don't expect any update to JNPR's financial guidance, we do expect a positive tone highlighting new growth opportunities resulting from new products and carrier NGN builds." JNPR over all option implied volatility of 43 is above its 26-week average of 36, according to Track Data, suggesting larger price risks.

Motorola (NYSE: MOT) implied volatility Flat into 9/7 investor meeting. MOT is hosting an analyst day in New York on 9/7. BAMO says, "we expect management to discuss its business strategy and market trends, and to highlight a number of new handsets." MOT over all option implied volatility of 30 is near its 26-week average, according to Track Data, suggesting non-directional risk.

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

Yahoo! Inc. (NASDAQ: YHOO) implied volatility up on expectations of Alibaba, Yang & EPS.

YHOO is recently trading $22.58. Recently, Alibaba.com, China's largest e-commerce company, hired NM Rothschild to advise it on a stock listing. YHOO has 40% ownership stake in Alibaba. YHOO is expected to report EPS on 10/16. YHOO over all option implied volatility of 38 is above its 26-week average of 35 according to Track Data, suggesting larger movement.

Rediff.com India Limited (ADR) (NASDAQ: REDF) volatility elevated as REDF trades near 52-week lows.

REDF, a provider of online consumer offerings, is recently up 30 cents to $15.07. REDF over all option implied volatility of 59 is above its 52-week average of 51 according to Track Data, suggesting larger price fluctuations.

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

Apple (NASDAQ: AAPL) implied volatility up into expected new family of iPod launch on 9/5.

AAPL is recently up $3.03 to $129.85 in pre-open trading. Goldman Sachs says, "Buy AAPL shares as new iPods add to its product cycle story." AAPL overall option implied volatility of 45 is above its 26-week average of 41 according to Track Data, suggesting slightly larger price movement.

Nokia (NYSE: NOK) volatility at 36 as NOK introduces four devices; NOK near 6-year high.

NOK introduced four devices optimized for entertainment, music and games. NOK closed at $30.01. OPCO says, "reiterate Buy – announces attractive multimedia products." NOK over all option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting slightly larger price risk.

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

China Life Insurance (NYSE: LFC) implied volatility is Elevated as LFC is near a record high. LFC offers products and services, including individual life insurance, accident insurance, and health insurance in China. LFC is recently up $2.97 to $66.21. LFC over all option implied volatility of 46 is above its 26-week average of 39, according to Track Data, suggesting larger price fluctuations.

ICICI Bank (NYSE: IBN) overall implied volatility is Elevated at 47. IBN is India's second largest bank, with total assets of over $79 billion USD as of 3/31/07. IBN over all option implied volatility of 47 is above its 26-week average of 41, according to Track Data, suggesting larger price fluctuations.

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

VeriSign (NASDAQ: VRSN) option implied volatility flat at 36.
VRSN provides intelligent infrastructure services for the internet and telecommunications networks. VRSN will report its EPS on 11/1/07 and has an analyst day on 11/14. VRSN closed at $29.80. VRSN over all option implied volatility of 36 is near its 26-week average according to Track Data, suggesting non-directional risks.

IBM (NYSE: IBM) implied volatility of 29 above 26-week average of 20.
IBM closed at $109.22. IBM over all option implied volatility of 29 is above its 26-week avearge of 20 according to Track Data, suggesting larger price risks.

Microsoft (NASDAQ: MSFT) implied volatility of 28 above 26-week average of 22.
MSFT closed at $28.27. MSFT over all option implied volatility of 29 is above its 26-week average of 22 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX at 26.32; 10-day moving average is 26.98.

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

Ann Taylor Stores (NYSE: ANN) implied volatility Increases to 50 into EPS. ANN is expected to report EPS on 8/24. BUCK says "we continue to project a recovery in the back half of the year." ANN September option implied volatility of 50 is above its 26-week average of 33 according to Track Data, indicating larger risk.

Abercrombie & Fitch (NYSE: ANF) volatility of 49 above 26-week average of 33 into EPS. ANF is recently up $2.18 to $74.92. ANF is expected to report EPS of .87 cents on August 22nd according to Thomson First Call. ANF has a market cap of $6.6 billion. Freidman Billings say's "Upgrading to Outperform; High-Quality name to weather Turbulent Times." ANF September option implied volatility of 49 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options down .84 to 29.99.

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

Yahoo! (NASDAQ: YHOO) implied volatility elevated at 40. YHOO is recently down 37 cents to $22.95. YHOO overall option implied volatility of 40 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

Microsoft (NASDAQ: MSFT) implied volatility elevated at 40. MSFT is recently down 19 cents to $27.91. MSFT overall option implied volatility of 40 is above its 26-week average of 23 according to Track Data, suggesting larger risk.

Amgen (NASDAQ: AMGN) implied volatility elevated at 34 after restructuring. AMGN is recently down $1.57 to $49.02. Goldman Sachs says: "Sales and costs in line. Maintain estimate and intrinsic value of $45." AMGN September option implied volatility of 34 is above its 26-week average of 26 according to Track Data, indicating larger risks.

Cisco Systems (NASDAQ: CSCO) implied volatility elevated at 34. CSCO is recently up 9 cents to $30.01. CSCO will be holding an analyst meeting on September 5 in San Jose. Jeffreies has a Buy rating on CSCO. CSCO September option implied volatility of 34 is above its 26-week average of 28 according to Track Data, suggesting slightly larger risk.

Volatility Index S&P 500 Options-VIX up 2.68 to 33.35.

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

Top Ten stocks with implied volatility above 105 with volume over 1,000 contracts: TMA, RAS, DFC, BZH, WCI, SPF, IMB, LEND, NFI & QLTI.

Hewlett-Packard (NYSE: HPQ) volatility Elevated into EPS & Outlook. HPQ is recently down $1.02 to $47.42. HPQ will report EPS on 8/16. American Technology say's "anticipate strong July quarter; despite outperformance, we remain buyers." HPQ August straddle is priced at $2.55. HPQ September option implied volatility of 36 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

Wal-Mart Stores, Inc. (NYSE: WMT) volatility above average as WMT trades near 1-year low. WMT is recently down $2.18 to $43.92. WMT reported 2nd quarter net sales increased 8.8% to $91.99 billion, income from continued operations increased 4.1% to $2.98 billion compared to the same period a year ago. Smith Barney says "in addition to the reduction in full-year guidance, management cited continued economic pressure on consumers, which we believe may pressure the stock in the near-term." WMT September option implied volatility of 24 above its 26-week average of 20 according to Track Data, suggesting larger risk.

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

Wal-Mart Stores Inc. (NYSE: WMT) -- volatility at four-year highs, suggesting larger fluctuations. WMT will report July sales on Thursday. WMT is expected to report EPS in mid-August. WMT overall option implied volatility of 26 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

Dell Inc. (NASDAQ: DELL) -- volatility up as DELL acquires technology for always-connected devices. DELL announced on Tuesday the acquisition of ZING Systems, a consumer technology and services company that focuses on always-connected audio and entertainment devices. MOKE says, "Yesterday's acquisition of Zing Systems by DELL may indicate that the computer manufacturer is closer to moving into the handset business." DELL is expected to report EPS in late August. DELL September option implied volatility of 34 is above its 26-week average of 26 according to Track Data, suggesting larger risk.

Daily options Update is provided by stock specialist Paul Foster of theflyonthewall.com.

Copano Energy (NASDAQ: CPNO) - Volatility Elevated into EPS & lower energy prices. CPNO is an energy company with natural gas gathering and intrastate transmission pipeline assets and natural gas processing facilities Oklahoma & Texas Gulf coast region. WTI Crude futures are down 3.56% to $72.79 according to Track Data. CPNO will announce EPS on 8/8. CPNO August option implied volatility of 41 is above its 12-week average of 20 according to Track Data, suggesting larger risk.

Enterprise Products (NYSE: EPD) - Implied volatility of 40 above 26-week average of 17. EPD transports natural gas, NGL's and crude oil through more than 35,000 miles of onshore and offshore pipelines. EPD September put implied volatility of 40 is above its 26-week average of 17 according to Track Data, suggesting larger risk.

Kinder Morgan Energy Partners (NYSE: KMP) - September volatility Elevated. KMP owns or operates 26,000 miles of pipelines and approximately 150 terminals. KMP September option implied volatility of 50 is above its 26-week average of 14 according to Track Data, suggesting larger risk.

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

Alcatel-Lucent (NYSE: ALU) near-term volatility skewed up after reporting second-quarter EPS loss of €0.15.

• ALU, the world's biggest manufacturer of telecommunications equipment, reported second quarter revenues that rose 0.5% year-over year at constant Euro/USD Exchange Rate.
  
• Bank of America says: "We continue to see solid fundamentals with positive restructuring benefits. We reiterate our Buy rating." Goldman Sachs says: "Gross margin disappointment limits upside; Downgrade to Neutral."
  
• ALU August option implied volatility is at 43 verses over all implied volatility of 33 according to Track Data, suggesting larger near term risks.

Wyeth (NYSE: WYE) volatility elevated into Protonix Injunction hearing.

• WYE, is engaged in the discovery, development, manufacture, distribution, and sales of products in pharmaceutical, healthcare and animal health.
  
• COWN said on July 25 WYE: "Protonix (helps control nighttime heartburn) will be subject of a July 31st Preliminary Injunction hearing, in advance of a potential at-risk launch by Teva (NYSE: TEVA) on August 2nd. We believe that WYE will prevail on the merits. Unfortunately, there is little upside and significant downside to this event."
  
• WYE August option implied volatility of 33 is above its 26-week average of 22 according to Track Data, suggesting larger risk.

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

Palm Inc. (NASDAQ: PALM) -- implied volatility low into EPS. PALM closed at $16.24. PALM will announced EPS on 6/28. Nollenberger Capital says Apple Inc.'s (NASDAQ: AAPL) "iPhone launch not a major issue for PALM. We believe that based on channel checks we have done that the iPhone is not positioned as a business phone and that core smartphone consumers will continue to look to standard operating system-based devices from PALM." PALM announced a strategic recapitalization with Elevation Partners on 6/4/07. PALM July option implied volatility of 37 is below its 26-week average of 43 according to Track Data, suggesting decreasing risk.

InterOil Corp. (NYSE: IOC) -- July straddle expensive at $6.40 as IOC sell off continues. IOC is a Canadian oil exploratory company with operations in eastern Papuan Basin New Guinea. IOC is recently down $4.56 to $25.76. IOC opened at $43.94 on 6/26/07. IOC released Elk-2 appraisal well drilling report No. 4 this morning. IOC July 35 straddle is at $6.40 according to Track Data, suggesting larger price fluctuations.

Option volume leaders today are: Crocs Inc. (NASDAQ: CROX), Google Inc. (NASDAQ: GOOG) and Alcoa Inc. (NYSE: AA).

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

Hologic (NASDAQ: HOLX) -- September implied volatility Skewed up on Speculation. HOLX, a maker of diagnostic and medical imaging systems, announced the purchase Cytyc (NASDAQ: CYTC) on 5/21/07, a diagnostic company. CYTC shareholders will receive 0.52 shares of HOLX and $16.50 in cash for each share of CYTC they own. The spread on the CYTC deal is roughly 10%, suggesting expectations of a hostile bid for HOLX. LEER says: "Merger on track, Hostile bid doubtful." LEER also says: "the list of buyers is short, with General Electric (NYSE: GE) (FTC issues) and Siemens (NYSE: SI) (new CEO) both being unlikely candidates." LEER goes on to say: "Philips (NYSE: PHG) recently 5/31 stated an interest in making acquisitions in its EUR 6.7B medical systems business." HOLX September option implied volatility of 42 is above its 26-week average of 38 according to Track Data, suggesting larger risk.

MannKind (NASDAQ: MNKD) -- option volume and implied volatility Elevated on Speculation. MNKD, a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer, is recently up $0.73 to $11.87. MNKD call option volume of 2,822 contracts compares to put volume of 306 contracts. MNKD July option implied volatility of 118 is above its 26-week average of 43 according to Track Data, suggesting larger price risks.

Volatility Index S&P 500 Options-VIX down 0.96 to 16.10.

Option volume leaders today are: Qaulcomm (NASDAQ: QCOM), Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and General Motors (NYSE: GM).

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