Volatility Index S&P 500 Options - VIX at 23.20; 10-day moving average is 20.92

Volatility Index NASDAQ 100 - VXN at 26.26; 10-day moving average is 25.24

NASDAQ 100-QQQQ overall option Implied Volatility at 26; 26-week average is 24

Semiconductor Holders Trust - SMH option implied Volatility 27; 26-week average is 23

IShares Russell 2000 - IWM option implied volatility at 28; 26-week average is 24

Amex Financial Select Sector - XLF implied volatility at 33; 26-week average is 23

ISE Sentiment Index-ISEE 144 new Calls purchased for every new Put on 11/1/07. ISEE 10-day moving average is 138. ISEE 50-day moving average is 133.

November front month Equity Options expire; 11/16/07

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

Bank of America (NYSE: BAC) volatility at five-year highs. BAC purchased $2 billion of preferred stock from CFC on 8/22/07. The securities could be converted into Countrywide Financial (NYSE: CFC) stock at $18 per share. CFC closed at $13.07. BAC November option implied volatility of 29 is above its 26-week average of 22 according to Track Data, suggesting larger risk.

Amex Financial Select Sector (AMEX: XLF) implied volatility at 28; 26-week average is 23.

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

Volatility Index S&P 500 Options-VIX at 27.37; 10-day moving average is 24.62

Volatility Index NASDAQ 100-VXN at 29.94; 10-day moving average is 25.95

NASDAQ 100 (NASDAQ: QQQQ) overall option Implied Volatility at 26; 26-week average is 21

Semiconductor Holders Trust (AMEX: SMH) option implied Volatility 27; 26-week average is 23

IShares Russell 2000 (NYSE: IWM) option implied volatility at 30, 26-week average is 22

Amex Financial Select Sector (AMEX: XLF) implied volatility at 30; 26-week average is 22

ISE Sentiment Index-ISEE 90 new Calls purchased for every new Put on 9/10/07. ISEE 10-day moving average is 122. ISEE 50-day moving average is 123.

September front month Equity Options expire; 9/21/07

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

Goldman Sachs Group (NYSE: GS) -- volatility up; Global Equity Opportunities (GEO) fund leverage reduced on $3 billion infusion. GS is recently trading up $4.40 to $184.97. GS says, "given the market dislocation, the performance of GEO has suffered significantly. Our response has been to reduce risk and leverage." GS, along with C.V. Starr, Perry Capital LLC and Eli Broad, are making a $3 billion equity investment in GEO. GS said on its conference call it has de-leveraged its GEO fund from six times leveraged to three and a half after the capital infusion. GS September option implied volatility of 51 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Amex Financial Select Sector SPDR (AMEX: XLF) -- September volatility at 37. XLF seeks to replicate the total return of the Financial Select sector of the S&P 500 Index. XLF is recently up $0.63 to $33.98. Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC), American International Group Inc. (NYSE: AIG), JP Morgan Chase & Co. (NYSE: JPM), Wells Fargo & Co. (NYSE: WFC), Wachovia Corp. (NYSE: WB) and GS are components of the XLF. XLF September at the money option implied volatility of 37 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options (VIX) down 1.50 to 26.80.

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