Norfolk Southern Corp. (NSC) February 65 calls and March 70 calls are active on total call volume of 14K contracts compared to 2K puts. January call option implied volatility is at 18, February and March is at 23. This is below its 26-week average of 28, according to Track Data, suggesting decreasing price movement.

Intel Corporation (INTC) is expected to report Q4 EPS on January 13. January call option implied volatility is 31, March is at 22, April is at 23. That's compared to its 26-week average of 29, according to Track Data, suggesting decreasing price movement after EPS.

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

I've liked the railroad sector for a while, and CSX Corp. (CSX), which I first wrote about on May 1, 2009, at a price of $30.56, looks likely to continue to move higher. Here's why:

CSX's volumes should increase and overall prices for transport services should firm, albeit with some softness in selected price categories, as the U.S./global economic recoveries gain momentum in 2010. Basic materials transport, including coal and scrap, should also experience healthy business gains in 2010, and the company's increased efficiency adds to the positive story.