Update. Earlier we noted increasing activity in Rigel Pharmaceuticals (RIGL, news, chart). While that was first attributed to some post earnings premium selling, implied volatility is clearly moving higher today. In the August 20s, it is moving up to 120 percent, which seems to indicate some other pending news in RIGL. Volume in RIGL options is now running 18 times the usuals, shares are down to $21.62.

Implied volatility (IV) in Zion (ZION, news, chart) is higher. Shares are trading down 53 cents to $33.04 and implied volatility in the August 30 puts is approaching 95 percent, up 12 percent on the tradng session. There is no news on the stock today, but some players are buying August puts with strike prices ranging from 35 to 22.5. 1,400 contracts have traded in all, or roughly three times the number of call options. Next earnings are due out in mid to late October, but the market is clearly priced for high levels of volatility in ZION between now and then.

Rigel Pharmeuticals (RIGL, news, chart) is seeing 11 times its normal trading volume, as some players seem to be selling premium on the heels of yesterday’s earnings report. The stock is down $1.61 to $22.35 after RIGL posted a net loss of 93 cents a share, compared to 68 cents a year ago. In the options market, the August 20 puts are the most actives, with more than 2,000 contracts traded and open interest of just 47. Some players might be selling these puts to take advantage of high implied vols and on the view that a move below $20 a share between now and August options expiration (7 and half trading days) is unlikely.

The National City (NCC, news, chart) September 5 straddle is seeing action, as the stock sits pinned near $5.00 a share. Around 10:50 Eastern time, 5,000 of the September 5 calls traded for 50 cents a contract. Another 5,000 September 5 puts traded for 60 cents. Both trades hit bidside and therefore the action seems to be part of a substantial straddle sale. If so, the strategist might be looking for NCC to remain rangebound (or within the profit zone of $3.90 and $6.10) during the next 44 days and hopes to keep some or all of the premium of $1.10 per straddle.

On CBOE a customer sold 12,500 September 30 Puts at 1.77 tied to 32.80 stock.

Options are active in the Market Vectors Coal Fund (KOL), as the group tries to rebound from three-day 17.5 percent slide. KOL, which is an exchange-traded fund that holds shares in 41 companies involved in the coal mining industry, is up $1.26 to $43.85 and volume in the options market is running double the usual. The gains come amid a modest rebound in commodity prices Wednesday. Crude oil is up 11 cents to $119.28 a barrel and gold added $2.00 to $888 an ounce. However, most of that volume in the coal ETF seems to be bearish trading, and perhaps bets that today’s rebound won’t last. The top trade of the day, for example, was an order for 4,850 KOL January 35 puts traded offerside or for $2.85 a contract.

20,000 Nov 50-60 XTO Energy (XTO, news, chart) call spreads were bought by cust for $2.25 on Amex versus sale of 14,000 Nov 40 Puts at 2.85, tied to 880K shares at 44.50. Stock up 2.8% to 45.07, this bullish spread opens on all sides. Earnings were Jul 22, and this might be a play on energy sector bottoming.

Jabil Circuit (JBL, news, chart) is trading up 59 cents to $17.18 and volume in the options market is running four times the usual on takeover chatter. Flextronics (FLEX) is mentioned as the possible suitor. 12,000 JBL calls have already traded, compared to 1,700 puts. The August 17.5 calls are the most actives, with 6,800 contracts traded, compared to open interest of 2,408.

The US Oil Fund (USO) is making a run to session highs ahead of weekly crude oil data due out in 10 min. With crude adding 63 cents to $119.80 a barrel, USO is trading up $1.13 to $96.72. Analysts expect today’s report to show crude oil stockpiles decreasing by 200,000 barrels in the week ended August 1. Gasoline is expected to show a draw of 1500K and distillate fuels a build of 2000K.

Raser Technologies (RZ, news, chart) is seeing 29 times its normal trading volume on what appears to be bullish spread trading. The stock is up 54 cents to $9.35 after the company announced that it has received a third party analysis of a well field for its Thermo geothermal power project in Beaver, Utah. This seems to be viewed as good news because, not only is the stock up, but a player seems to have opened a substantial spread by purchasing 12,500 of the RZ October 7.5 calls for $2.65 a contract and selling the same number of October 10s for $1.25. While it is possible that the action in the 10s is closing (open interest is 13,269), it seems more likely that the volume is part of a bull call spread, where the strategist is paying a net debit of $1.40 for the possibility of making $1.10 if RZ closes at $10 or higher at October options expiration.