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.

International Game Technology (NYSE: IGT) implied volatility and call volume Jumps on Chatter.

• IGT specializes in the design, manufacturer and marketing of computerized gaming equipment. IGT is recently up $1.28 to $39.18 on unconfirmed takeover chatter.
• IGT call option volume of 12,038 contracts compares to put volume of 576 contracts. IGT June option implied volatility of 34 is above its 26-week average of according to Track Data, suggesting larger risk.

Salesforce.com, Inc. (NYSE: CRM) option volume heavy; volatility flat on Speculative chatter.

• CRM, an on demand customer relationship management applications company, is recently up $0.76 to $43.83 on take over speculation.
• CRM reported first quarter revenue of $162 million yesterday. GROW has a Buy rating on CRM.
• CRM June option implied volatility of 40 is below its 26-week average of 44 according to Track Data, suggesting decreasing risk.

Option volume leaders today are: Intel Corp. (NASDAQ: INTC), Elan Corp. (NYSE: ELN), Apple Inc. (NASDAQ: APPL) and U.S. Steel Corp. (NYSE: X).

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

Countrywide Financial Corp. (NYSE: CFC) implied volatility Elevated as CFC share price retraces.

• CFC, the largest U.S. home mortgage lender, is recently up $1.44 to $39.92 on renewed buyout chatter.
  
• CFC May option implied volatility of 48 & June at 41 is above its 26-week average of 34 according to Track Data, suggesting larger price risks.

Urban Outfitters Inc. (NASDAQ: URBN) implied volatility suggests increased risk into EPS.

• URBN, a lifestyle merchandising company, announced 1Q same store sales fell 2%.
  
• URBN will report EPS on 5/10. BUCK has an accumulate rating on URBN with a $31 price target.
  
• URBN May option implied volatility is at 53, June is at 45; above its 26-week average of 42 according to Track Data, suggesting larger risk.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), AK Steel Holding Corp. (NYSE: AKS), Motorola Inc. (NYSE: MOT) and Cisco Systems Inc. (NYSE: CSCO).

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

Dendreon (NASDAQ: DNDN) option implied volatility suggests large risk into PDUFA.

DNDN is recently down $0.27 to $15.18. DNDN Provenge has a May 15th PDUFA date. On 3/29 the FDA Advisory Panel said DNDN's Provenge is safe for prostate cancer. DNDN May option implied volatility is above 210 according to Track Data, suggesting large risk.

Microsoft (NASDAQ: MSFT) implied volatility collapses after EPS; suggesting less risk.

MSFT, is recently up $1.21 to $30.31, after reporting a third-quarter profit increase of 65%. Prudential Securities said "Strong F3Q results driven by better than expected Vista sales to the consumer market; provides largely inline FY08 guidance." MSFT call option volume of 135,478 contracts compares to put volume of 58,345 contracts. MSFT May option implied volatility of 19 is below yesterday's level of 26 and below its 26-week average of 21 according to Track Data, suggesting decreasing risk.

Option volume leaders today are: Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT).

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

Apple Inc. (NASDAQ: AAPL) -- May OTM puts more expensive than calls, suggesting downside Hedging. AAPL is expected to report EPS of 64 cents after the close tonight. AAPL call option volume of 56,543 contracts compares to put volume of 25,270 contracts. AAPL May 105 calls have traded 172 times on transaction volume 20,030 contracts. AAPL May 85 puts have traded 133 times on transaction volume of 8,659 contracts according to Track Data. AAPL May 85 puts are bid 55 cents, above its theoretical value of 42 cents. AAPL May 105 calls are bid 45 cents, below its theoretical value of 49 cents. AAPL options suggest downside hedging tendencies.

Navistar Intl. (NASDAQ: NAVZ) -- elevated implied volatility suggests Risk as NAVZ at record High. NAVZ, a truck, bus, engine manufacturer, is recently up $1.13 to $57.93. MAN AG, Hino, F, Fiat, Isuzu, PCAR, OSK, General Motors (NYSE: GM), DaimlerChrysler (NYSE: DCX) and Iveco have been frequently mentioned as interested in doing acquisitions, partnerships or bolt-on deals. NAVZ over all option implied volatility of 46 is above its 26-week average of 41 according to Track Data, suggesting larger price risks.

Option volume leaders today are: Intel Corp. (NASDAQ: INTC) and Apple Inc. (NASDAQ: AAPL).

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

The Volatility Index for S&P 500 Options (VIX) is up .16 to 13.62.

Cypress Bioscience (NASDAQ: CYPB) -- option implied volatility Elevated at 194. CYPB closed at $7.46. Data from CYPB's end PII Milnacipran (Fibromyalgia Syndrome; FMS) trail, is expected to be released before mid-year. JEFF has a Buy on Attractive Risk/Reward with a $14 price target on CYPB. JEFF says "our diligence with investigators and statisticians increase our confidence in the prospects for a positive outcome." CYPB June option implied volatility is at 194 according to Track Data, suggesting large price fluctuation risk.

Starwood (NASDAQ: HOT) -- implied volatility suggests Flat risk; HOT at Record price on Chatter. HOT, a leading hotel and leisure company, is frequently mentioned as a private equity break up-recapitalization candidate. HOT is up $1.13 to $70.97. HOT's CEO Steve Heyer resigned on 4/12/07. HOT will announce EPS on 4/26. HOT has a market cap of $16 billion with long term debt of $2.3 billion. HOT reported 2006 annual total revenue of $5.9 billion. HOT May option implied volatility of 26 is near its 26-week average according to Track Data, suggesting non-directional risk.

Option volume leaders today are: Best Buy (NYSE: BBY), Qualcomm (NASDAQ: QCOM), Apple Inc. (NASDAQ: AAPL) and Altria (NYSE: MO).

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

The Volatility Index S&P 500 Options-VIX is down 1.64 to 13.60.

Monster Worldwide (NASDAQ: MNST): implied volatility and volume low as MNST rallies on upgrade. MNST is recently up $2.19 to $49.74. MNST has market cap of $6.3 billion. Smith Barney upgraded MNST from Hold to Buy on EPS leverage, robust customer position, potential for share buybacks and positive review of new website. MNST call option volume of 688 contracts compares to put volume of 289 contracts. MNST option implied volatility of 35 is below its 26-week average of 38 according to Track Data, indicating decreasing stock price risk.

Grant Prideco (NYSE: GRP): implied volatility suggests flat risk; rally continues on report. GRP, engaged in drill stem technology development and drill pipe products and services, is recently up $1.95 to $47.16. RBC Capital Markets says, "GRP possible target of Vallourec. GRP jumped 5.6% yesterday due in large part to a story in Challenges magazine citing Vallourec as a suitor. There is a clear industrial fit in the drill pipe and premium connections businesses. However it strikes us as odd that VK would be pursuing an acquisition concurrently with announcing a special dividend." GRP traded 9,482 contracts March 7. GRP call option volume of 2,282 contracts compares to put volume of 844 contracts. GRP April option implied volatility of 40 is near its 26-week average of 42 according to Track Data, suggesting non-directional risk.

Option volume leaders today were: KBR (NYSE: KBR), Haliburton (NYSE: HAL), Altria (NYSE: MO) & Microsoft (NASDAQ: MSFT).

The 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 .50 to 10.68.

NewAlliance Bancshares-(NYSE:NAL) implied volatility spikes on heavy call volume. NAL, a bank holding company with assets of approximately $8 billion operating 88 branches in Connecticut & western Massachusetts, will be presenting at Keefe Bruyette & Woods bank conference on 2/28. NAL annual shareholder meeting is on 4/24/07. NAL has a market cap of $1.8 billion with a P.E. of 33. NAL call option volume of 1,318 contracts compares to put volume of 374 contracts. NAL March option implied volatility of 49 is above its 26-week average of 27 according to Track Data, suggesting larger fluctuations.

Hyperion Solutions-(NASDAQ:HYSL) low option implied volatility & volume discounts chatter. HYSL, a provider of business performance management software, is recently up .84 to $42.22. HYSL is up on ORCL takeover chatter. BAMO has a 12-month target of $40. HYSL over all option implied volatility of 30 is below its 26-week average of 32 according to Track Data, suggesting decreasing price risk.

TXU Corp-(NYSE:TXU) March option implied volatility of 38 suggests EPS event risk. TXU, manager of a portfolio of energy business in Texas, is recently up $1.45 to $59.09. TXU is expected to announce EPS of $1.20 on 2/27/07. The Texas State Office of Administrative Hearings will begin on June 27th according to press reports. TXU call option volume of 13,019 contracts compares to put volume of 3,916 contracts according to Track Data. TXU at the money option implied volatility is at 38, April is at 28 above its 26-week average of 27 according to Track Data, suggesting larger near term event risk.

Option volume leaders today were: General Electric (NYSE-GE), Qualcomm (NASDAQ:QCOM), Apple Inc. (NASDAQ: AAPL) and Amgen (NASDAQ: AMGN).

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

Volatility Index S&P 500 Options-VIX down .07 to 10.15.

General Motors-(NYSE:GM) option implied volatility increases to 37: Dow Jones says "GM in talks to purchase Chrysler." General Motors is recently down .41 to $36.02. Dow Jones reported "GM in talks to purchase Chrysler Group." GM call option volume of 22,023 contracts compares to put volume of 43,510 contracts. General Motors March option implied volatility of 35 is below its 26-week average of 40 according to Track Data, suggesting decreasing price risks.

DaimlerChrysler-(NYSE:DCX) option implied volatility Spikes on Dow Jones report on GM. DaimlerChrysler is recently up $2.69 to $72.85. Dow Jones reported: "General Motors in talks to purchase Chrysler Group." DCX call option volume of 24,099 contracts compares to put volume of 5,947 contracts. DaimlerChrysler March option implied volatility of 31 is above a level from 22 yesterday and above its 26-week average of 25 according to Track Data, suggesting larger price risks.

Option volume leaders today were: Google (NASDAQ:GOOG), Best Buy (NYSE: BBY), Apple, Inc. (NYSE:AAPL) and Microsoft (NASDAQ:MSFT).