BP shares are up $1.57 to $38.43 and options action remains brisk, as players react to the latest developments in the Gulf spill saga and await earnings. According to recent media reports, BP’s Hayward is stepping down in October and will take a job at the TNK – BP joint venture. Making Hayward the fall guy seems to be the company’s latest efforts in trying to mitigate some of the negative impact from a PR nightmare. In any event, BP is up $1.57 to $38.43 and implied volatility easing about 2 percent to 52.5 on the Hayward news. Meanwhile, Aug 35 puts and Aug 40 calls are the most actives, as players jockey for position ahead of tomorrow morning’s earnings release. Most of the action is in smaller lots. The top trades Aug 40 – 45 put spreads bought at $1.21, 1000X in recent trade.