Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX is up 3.78 to 14.93. VXN 10-day moving average is 10.77. S&P's recently down 2.45%.

Volatility Index NASDAQ 100-VXN up 3.84 to 19.82. VXN 10-day moving average is 15.84. NASDAQ 100 recently sells off 3.41%.

Weyerhaeuser-(NYSE-:WY) implied volatility suggests non-directional risk into Domtar (NYSE-DTC) exchange. On 2/2/07 WY announced a split-off transaction in which each $1 worth of WY tendered will receive $1.11 worth of DTC stock. WY announced on 2/26 that security holders of DTC have voted to approve the plan to combine DTC with the fine paper business of WY, the deal is expected close in March. WY is then expected to be a buyer of its own stock and then possibly announce a more tax efficient structure for its timberlands. WY call option volume of 12,427 contracts compares to put volume of 8,133. WY over all option implied volatility of 22 is near its 26-week average according to Track Data, suggesting non-directional price risk.

Kohl's-(NYSE:KSS) options suggest non-direction price risks into 3/1 EPS & Outlook. KSS, an operator of 817 stores, will report EPS on 3/1. First Call is expecting EPS of $1.43. Buckingham Research says "We are maintaining our neutral rating on KSS ahead of its Q4 earnings report, valuation and the likelihood of difficult sales, gross margin and SD&A comparisons in the hear ahead." KSS call option volume of 1,616 contracts compares to put volume of 1,466. KSS March option implied volatility of 26 is near its 26-week average according to Track Data, suggesting non-directional price risks.

Option volume leaders today were: Qualcomm (NASDAQ:QCOM) & Apple (NASDAQ:AAPL).