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.