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Paul Foster
Chicago U.S.A. - http://

Paul Foster, a knowledgeable researcher has 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers and acquisitions.

J.C. Penney (NYSE: JCP) closed at $31.37 Friday. JCP is scheduled to report September sales data on October 8. JCP October option implied volatility of 83 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

Kohl's (NYSE: KSS) closed at $41.47 Friday. KSS is expected to report September sales data on October 8. KSS over all option implied volatility of 65 is above its 26-week average of 48 according to Track Data, suggesting larger price movement.

Dillard (NYSE: DDS) closed at $11.06 Friday. DDS is expected to report September sales data on October 8. DDS overall option implied volatility of 108 is above its 26-week average of 73 according to Track Data, indicating larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Wells Fargo (NYSE: WFC) and Wachovia (NYSE: WB) said they have signed a definite agreement for the merger of the two companies including all of WB's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corp (FDIC). WFC October option implied volatility of 97 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

WB is recently trading at $6.40 in pre-open trading, above its close of $3.81. WB overall option implied volatility of 145 is above its 26-week average of 72 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 45.25; 10-day moving average is 37.55.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

General Electric (NYSE: GE) is recently trading at $22.95 in pre-open trading, below its close of $24.50. GE is expected to report Q3 EPS on October 10. GE October option implied volatility is at 69, November is at 65; above its 26-week average of 31 according to Track Data, suggesting larger price movement.

SLM (NYSE: SLM), engaged in education finance, closed at $8.35. SLM October 7.5 straddle is priced at $4.25, November 7.5 straddle is priced at $5. SLM over all option implied volatility of 164 is above its 26-week average of 80 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

CBS (NYSE: CBS) closed at $14.58. CBS is expected to report Q3 EPS in late October. CBS Corp will host an investor conference to discuss the company's interactive business on October 7. CBS over all option implied volatility of 44 is above its 26-week average of 36 according to Track Data, suggesting larger price movement.

Viacom (NYSE: VIA) closed at $24.86. VIA overall option implied volatility of 49 is above its 26-week average of 35 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 39.38; 10-day moving average is 35.98.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Microsoft (NASDAQ: MSFT) closed at $25.01. MSFT announced on September 22 its board of directors approved a new share repurchase program authorizing up to additional $40 billion in share repurchases with an expiration of September 30, 2013. MSFT is scheduled to report Q1 EPS on October 23. MSFT October option implied volatility is at 55, November is at 51; above its 26-week average of 32 according to Track Data, suggesting larger price movement.

BHP Billiton (NASDAQ: BHP), the world's largest diversified resources company, closed at $50.50. BHP October option implied volatility of 97 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 46.72; 10-day moving average is 35.07.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Wachovia (NYSE: WB) is recently trading at $4.25 in pre-open trading, below its close of $10. WB October 10 straddle was priced at $7.20 on September 26, November 10 is at $8.40 according to Track Data, suggesting larger price movement.

National City (N&SE: NCC) is recently trading at $3.64 in pre-open trading, below its close of $3.71. NCC's share price declined 25% after JP Morgan (NYSE: JPM) purchased Washington Mutual (NYSE: WM) banking assets. BMO Capital says: "NCC is not in the same situation as WM was." NCC October 4 straddle is priced at $2.45; November 4 straddle is priced at $2.75; according to Track Data, suggesting large price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

JP Morgan Chase (NYSE: JPM) became the biggest U.S. bank by deposits, acquiring Washington Mutual (NYSE: WM) branch network for $1.9 billion after the thrift was seized in the largest U.S. bank failure in history. JPM October option implied volatility of 65 is above its 26-week average of 48 according to Track Data, suggesting larger price movement.

Globex S&P futures trading 21.70 below previous day's SPX cash close after U.S. Republican lawmakers stalled urgent efforts to agree on a national economic rescue plan.

Volatility Index S&P 500 Options-VIX at 32.81; 10-day moving average is 32.66.

Financial Select Sector-XLF overall volatility at 48; 26-week average is 40.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Pilgrim's Pride (NYSE: PPC) informed its lenders it does not expect to be in compliance with its fixed-charge coverage ratio covenant under its principle credit facilities. PPC is the U.S.'s second largest chicken processor. PPC November option implied volatility of 189 is above its 26-week average of 56 according to Track Data, suggesting larger price fluctuations.

Transmeta (NASDAQ: TMTA) said it has begun a process to seek a potential sale of the company. TMTA, a designer of chip technology, closed at $13.50. TMTA over all option implied volatility of 66 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Goldman Sachs (NYSE: GS) is recently trading at $134.50 in pre-open trading, above its close of $125.05. GS agreed to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, in addition GS is raising at least $2.5 billion in common equity in a public offering. Deutsche Bank says: "Less risk and lower returns likely with Buffett stake." GS October call option implied volatility is at 89, puts are at 98; above its 26-week average of 53 according to Track Data, suggesting larger price movement.

Morgan Stanley (NYSE: MS) is recently trading at $30.75 in pre-open trading, above its close of $28. MS October call option implied volatility is at 139, puts are at 163; above its 26-week average of 58 according to Track Data, suggesting large price movement.

Financial Select Sector-XLF overall volatility at 52; 26-week average is 40

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

General Electric (NYSE: GE) is recently trading at $25.61 in pre-open trading, below its close of $26.15. Merrill Lynch lowered its rating on GE to Neutral from Buy. GE October option implied volatility of 61 is above its 26-week average of 30 according to Track Data, suggesting larger price movement.

Chesapeake Energy (NYSE: CHK) closed at $40.89 Monday. CHK announced plans to temporarily reduce its 2008-10 capital expenditures and reduce its rig count by 17. CHK will host an analyst meeting on October 15. Natural Gas futures are recently up 0.17% to $7.671 according to Bloomberg. CHK October option implied volatility of 66 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Volatility Index S&P 500 Options - VIX at 32.06; 10-day moving average is 28.60 according to Track Data.

Volatility Index NASDAQ 100 - VXN at 34.25; 10-day moving average is 30.54.

Financial Select Sector - XLF overall volatility at 38; 26-week average is 40.

Yahoo (NASDAQ: YHOO) closed at $19.89 Friday. Cowen says: "We continue to believe that Yahoo faces secular challenges beyond a likely near-term softening of the display ad market." Cowen goes on to say "we do not believe Yahoo shares offer compelling risk/reward at current levels." YHOO is expected to announce Q3 EPS on October 21. YHOO October option implied volatility of 72 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

UltraShort S&P500 ProShares (NYSE: SDS) is recently trading at $65.10 in pre-open trading, below its close of $72.50. SDS seeks daily investment results that correspond to twice the inverse daily performance of the S&P 500. SDS October option implied volatility of 66 is above its 26-week average of 46 according to Track Data, suggesting larger price movement.

UltraShort FTSE/Xinhua China 25 Proshares (NYSE: FXP) is recently trading at $88.52 in pre-open trading, below its close of $108.55. FXP October option implied volatility of 133 is above its 26-week average of 79 according to Track Data, suggesting larger price movement.

UltraShort Financials ProShares (NYSE: SKF) is recently trading at $87.96 in pre-open trading, below its close of $115.44. SKF is an exchange-traded fund seeking daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Financials Index. SKF October option implied volatility of 161 is above its 26-week average of 75 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Morgan Stanley (NYSE: MS) closed at $21.75 Wednesday. MS September 20 straddle is priced at $7.30, October 19 straddle is priced at $14. MS October option implied volatility of 206 is above its 26-week average of 54 according to Track Data, suggesting large price movement.

Goldman Sachs (NYSE: GS) is recently trading at $117.40 in pre-open trading, above its close of $114.50 Wednesday. GS September 115 straddle is priced at $21, October 115 straddle is priced at $43.50. GS October option implied volatility of 148 is above its 6-month average of 53 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

SanDisk (NASDAQ: SNDK) is recently trading at $22.65 in pre-open trading, above its close of $15.04. Samsung Electronics made public a $5.8 billion offer to purchase SNDK. SNDK, a supplier of flash storage cards, rejected Samsung's buyout proposal. SNDK overall option implied volatility of 79 is above its 26-week average of 63 according to Track Data, suggesting larger price movements.

Sempra Energy (NYSE: SRE), an energy company serving 29 million consumers worldwide, closed at $53.04. SRE October option implied volatility of 51 is above its 26-week average of 25 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 30.29; 10-day moving average is 25.31.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

American Int'l (NYSE: AIG) is recently trading at $2.92 in pre-open, below its close of $4.76. AIG had its credit ratings lowered by Standard & Poor's and Moody's Investors Service. AIG October 2.5 straddle closed at $4.90 according to Track Data, suggesting larger price movement.

Dell (NYSE: DELL) is recently trading at $17 in pre-open trading, below its close of $17.99. DELL says: "seeing further softening in global end-user demand in the current quarter." DELL over all option implied volatility of 44 is above its 26-week average of 37 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com