Put-holders should brace for a surge to at least 36.60 — or possibly 37.81 if any higher — if it appears that BP’s latest oil-gusher cap is working.  Even if they manage to stop the flow completely, however, the company will face calamitous litigation in the years to come.  For now, though, with implied volatilities in the low-to-mid-60s, put options are prohibitively priced — so much so that the prospect of making a profit with them seems dim even if the stock relapses. _______ UPDATE (July 13):  Fascinating.  BP gapped up to exactly $37.76 on the opening bar, capping a 15% run-up in just 12 hours of trading; then the stock plummeted to $35.71.  This may or may not prove be The Top, but it sure as heck was a shortable top.