Following their relegation from the Championship, Wolves have sacked manager Dean Saunders, and just an hour later Kenny Jackett resigned as Millwall boss.
Coyle, who has been out of a job since leaving Bolton in October, is 7/1 favourite in the Millwall manager betting and 6/1 to replace Saunders at Molineux.
Peterborough boss Darren Ferguson has been backed into 5/2 favourite from 10/1 to be the next Wolves manager, while Jackett has been installed at 3/1 to swap Millwall for Wolves.
Saunders is 8/1 joint-second favourite to take over at The Den alongside MK Dons' Karl Robinson and Bournemouth's Eddie Howe.
Meanwhile, Saunders has been slashed from 33/1 to 6/4 to return to Doncaster following his departure from Wolves, although Paul Dickov remains the odds-on favourite for the Rovers post.
Sky Bet's football trader Chris Spicer said: "There are certainly greater problems at Wolves than the manager so I am unsure as to how beneficial this change can be for the club. The early money has been for Darren Ferguson and Owen Coyle.
"Wolves are 5/1 favourites to win League one next year and 6/4 to gain promotion but whoever comes in will have a massive job on their hands in turning around their stuttering fortunes."
He added: "Kenny Jackett's resignation has been a big shock this morning and Millwall will do well to replace him with a more competent manager. He has done a brilliant job in the six years and it will be interesting to see his next destination.
"The first few bets have been on Eddie Howe to move from Bournemouth although this would surprise me given Howe's suggestion that he felt very unsettled after previously leaving Bournemouth for Burnley."