Option update: AAPL volatility up into 'The beat goes on' event

Apple (NASDAQ: AAPL) volatility Elevated as AAPL near record high into expected announcement during today's event.

AAPL is recently up $0.89 to $145. AAPL will be making an announcement today and speculation has recently focused on AAPL launching a new family of iPods. AAPL September option implied volatility is at 48; October is at 46; above its 26-week average of 41 according to Track Data, suggesting slightly larger price movement.

Boeing (NYSE: BA) October volatility of 29 above 26-week average of 25.

BA is recently down $0.44 to $95.55. BA announced on a conference call this morning the 787 Dreamliner's first flight will be in mid-November to mid-December. BA still sees the first 787 delivery in May of 2008. BA will be speaking at a Morgan Stanley Industrial Conference on 9/11. BA September option implied volatility is at 26; October is at 29; January is at 27 above its 26-week average of 25 according to Track Data, suggesting larger risk.

Altria Group (NYSE: MO) implied volatility of 18 below 26-week average of 20.

MO is down $1.27 to $68.40. Goldman downgraded MO to Neutral from Buy and lowered its 12-month price target to $76 from $79. Goldman Sachs says, "the stock now looks only modestly undervalued relative to our sum-of-the-parts price target." MO call option volume of 35,636 contracts compares to put volume of 10,784 contracts. MO September & October option implied volatility of 18 is below its 26-week average of 20 according to Track Data, suggesting slightly lower price movement.

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