Have there been any notable draft steals from the late rounds of the draft? While I am learning this game I think I have the "volatility" grade down, but would that ever result in guys spiking randomly or have players been known to do that? I am just curious if that kind of adds into the value of a late round draft picks.

There certainly are, especially if you look at switching players positions and letting their weights adjust. This is my favorite example https://mfn15.myfootballnow.com/player/7670 He was a FB, and I changed him to a WR.

and the one million dollar question though is what is his opinion of you ??

Happy. Why wouldn't he be?

Not OP but I think its something to do with the tutorial videos mentioning player happiness and playing them out of position

Ah, that applies when you play him out of position at a position that is worse. In this case, this player would have been a terrible FB. So switching him to WR made him better, so no issue.

I position switch constantly when drafting: https://rivals.myfootballnow.com/community/3/4277?page=1

It's one of the best ways I have found to get the best players at position throughout a draft. And, yes, it turns up a lot of late round gems.

I wonder if this is why nobody trades me draft picks?
https://wisconsin-boys.myfootballnow.com/player/4989

Remember that volatility is a crapshoot. For every one of these, there will be a high-profile bust. I'm sure everybody has lots of guys like this one:
https://arena.myfootballnow.com/player/4368

If your draft pick is going to play for you, then shy away from volatility. If you are merely hoping a draft pick is going to work out, then fire away. Another thing I've done successfully is draft two high-volatility players to fill a single roster spot in the hope that one of them will work out.

What volatility is is a small chance that the volatile player will be a star. What volatility is not is a guarantee that you can find a diamond in the rough. Many of your opponents will eschew volatility for good reason. But if you are realistic about what volatility is and isn't, you can safely draft high-volatility players.