Options Update: Google December volatility elevated at 87; YHOO, AMZN

Google (NASDAQ: GOOG) is recently down $2.44 to $255 in pre-open trading. Thomas Weisel has a $650 target on GOOG. Smith Barney has a $450 target price for GOOG. GOOG December option implied volatility of 87 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Yahoo (NASDAQ: YHOO) closed at $10.21 Monday. Thomas Weisel has a 12-month target of $15 on YHOO. YHOO December option implied volatility of 112 is above its 26-week average of 66 according to Track Data, suggesting larger price movement.

Amazon.com (NASDAQ: AMZN) is recently down 20 cents to $42.30 in pre-open trading. Stanford Group says: "Initiate coverage of AMZN with a Sell rating and a $25 per share price target. We forecast revenue growth to decelerate materially in 2009 as retail sales declines worsen as inventory and pricing competition builds during a deep global recession." AMZN December option implied volatility of 93 is above its 26-week average of 62 according to Track Data, suggesting larger price movement.

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