Goldman Sachs (NYSE: GS) volatility Elevated into EPS, Risk Exposure & Outlook. GS is expected to report EPS on 9/20. Wachovia Corp.(NYSE:WB) say's "Lack of mortgage and Chinese exposure distinguish GS." GS September option implied volatility is at 50; October is at 45; above its 26-week average of 35 according to Track Data, suggesting larger risk.

Morgan Stanley (NYSE: MS) MS is expected to report EPS on 9/19. MS September option implied volatility is at 48; October is at 41; above its 26-week average of 33 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) is expected to report EPS on 9/20. Aquarian Investments holds a 6.97% stake in BSC for investment purposes. BSC Chairman & CEO James Cayne is 72. BSC Chairman of Executive committee Alan Greenberg is 79. WB say's BSC "shares are currently 1.2x book value compared to its historical average of 1.6x." BSC September option implied volatility is at 71; October is at 63; is above its 26-week average of 43 according to Track Data, suggesting large price movement.

Lehman Brothers (NYSE: LEH) is expected to report 3rd quarter EPS on 9/18. WCHV say's LEH's "Q3 started strong but ended real weak." LEH September option implied volatility is at 76; October is at 62; above its 26-week average of 40 according to Track Data, suggesting larger price risk.

Intel (NASDAQ: INTC) volatility at 31into increase of third quarter revenue guidance.

• INTC is recently trading up $0.25 to $25.72 (12:32 p.m.).
  
• INTC says, "as a result of stronger than expected worldwide demand for its computing products, INTC now expects revenue for the third quarter to be between $9.4 billion and $9.8 billion as compared to the previous rang of $9 billion to $9.6 billion."
• INTC will report EPS on 10/16.
  
• INTC October option implied volatility of 31 is above its 26-week average of 28 according to Track Data, suggesting slightly larger risk.

Bear Stearns (NYSE: BSC) volatility Elevated prior to Aquarian announcing 6.97% positions.

• BSC is recently flat but originally was up $3.05 to $108.16 when the Dow Jones reported that Aquarian Investments is holding a 6.97% stake in BSC for investment purposes.
  
• BSC overall option implied volatility of 59 is above its 26-week average of 42 according to Track Data, suggesting large price movement.

Volatility Index S&P 500 Options-VIX up 0.46 to 26.69; 10-day moving average is 23.95.

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