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

Volatility Index S&P 500 Options-VIX up 2.30 to 20.43

Sepracor Inc. -(NASDAQ:SEPR) option implied volatility stays low on FDA request for new warnings. SEPR markets Lunesta, a prescription sleep aid and Xopenex, a treatment to prevent bronchospasm. SEPR is down .67 to $48.15. Dow Jones reported "The FDA said Wednesday it's requesting new warnings on 13 drugs such as Ambien and Lunesta." Goldman says "important catalyst for this year include the launch of generic SNY-Ambien on April 21 (which could threaten Lunesta trends) and the initial CMS decision on Xopenex UDV Medicare reimbursement on June 20 (final decision in September)." Goldman has a $55 target on SEPR, down from $59. SEPR call option volume of 3,026 contracts compares to put volume of 9,348 contracts. SEPR April option implied volatility of 35, below its 26-week average of 42 according to Track Data, suggesting decreasing price fluctuations.

Accredited Home Lenders-(NASDAQ:LEND volatility-call volume spikes: LEND rallies on chatter. LEND is a mortgage company originating, financing, securitizing, servicing and selling non-prime mortgages. LEND is recently up $1.61 to $5.61 on unconfirmed M&A chatter. LEND call option volume of 52,058 contracts compares to put volume of 36,681 contracts. LEND April option implied volatility of 210 is above its 26-week average of 63 according to Track Data, suggesting large price fluctuations.

Option volume leaders today were: Accredited Home Lenders (NYSE:LEND), Citigroup (NYSE:C) & Apple (NASDAQ:APPL).