AtheroGenics (NASDAQ: AGIX) September options active at higher prices into Data. AGIX closed up 41 cents to $2.49. AGIX focuses on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases. AGIX announced on 8/29/07 new scientific data of its oral antidiabetic agent AGI-1067 will be presented at the European Society of Cardiology Congress on 9/5/07 in Vienna, Austria. AGIX call option volume of 18,320 contracts compares to put volume of 13,171 contracts. AGIX at the money September 2.5 straddle is priced at 90 cents according to Track Data, suggesting larger price moment.

Volatility Index S&P 500 Options (OPR: VIX) up 1.25 to 25.06.

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

Volatility Index S&P 500 Options-VIX up 0.24 to 13.53

Advanced Micro Devices Inc. (NYSE:AMD) calls (quoted in Pennies) busy on chatter of private equity cash infusion. AMD is recently up $0.46 to $13.87. AMD has been frequently subject to LBO chatter; today chatter is circulating that a friendly private equity-strategic partner could surface to make cash infusion. Speculation is that AMD could announce a deal similar to the deal Sun Microsystems Inc. (NASDAQ:SUNW) announced on 1/23/07, when it received a $700 million dollar private placement from KKR. AMD call option volume of 73,560 contracts compares to put volume of 9,747 contracts. AMD April option implied volatility of 41 is below its 26-week average of 45 according to Track Data, suggesting decreasing price risks.

eBay Inc. (NASDAQ:EBAY) implied volatility is low. Meg Whitman enters ninth-year working as eBay CEO. EBAY is recently up $0.23 to $31.72. Meg Whitman has an estimated net worth of $1.2 billion according to Forbes, much of it in EBAY stock. Years ago, Whitman said she would leave EBAY after eight to ten years. Whitman joined EBAY in 1998. EBAY has a market cap of $43 billion. Microsoft Corp. (NASDAQ:MSFT) has a market cap of $270 billion. EBAY overall option implied volatility of 34 is below its 26-week average of 37 according to Track Data, indicating decreasing risks.

Option volume leaders today are: SanDisk Corp. (NASDAQ:SNDK), AtheroGenics Inc. (NASDAQ:AGIX), Halliburton Co. (NYSE:HAL) and Qualcomm Inc. (NASDAQ:QCOM).

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

Volatility Index S&P 500 Options-VIX down 0.57 to 14.02.

Morgan Stanley (NYSE:MS) April option implied volatility-Risk stays elevated into EPS.
MS operates its business through four segments: retail brokerage, asset management, institutional securities. Investors expect to hear more about MS plan to spin off its Discovery Card, a company with 50 million card members and four million merchant /cash access locations. MS is expected to report EPS of $1.88 on 3/21 according to Thomson First Call. MS April option implied volatility of 28 is above its 26-week average of 24 according to Track Data, suggesting larger price risk.

Motorola Inc. (NYSE:MOT) volatility and volume Spikes on canceled CEO speech, LBO and PALM chatter.
MOT is recently up $0.46 to $18.74 on LBO speculation. Carl Icahn entities own 1.39% of MOT. The Chicago Tribune reported MOT CEO Edward Zander canceled his keynote speech at the cell phone's industry annual U.S. trade show, CTIA Wireless. Chatter is also circulating that MOT could purchase Palm Inc. (NASDAQ:PALM). MOT call option volume of 35,471 contracts compares to put volume of 18,121 contracts. MOT April option implied volatility of 35 is above a level of 30 from 70-minutes ago. MOT average option implied volatility over the last 26-week average is 29 according to Track Data. Increasing option volume and implied volatility suggests larger price risk fluctuations.

Option volume leaders today were: AtheroGenics Inc. (NASDAQ:AGIX), Motorola Inc. (NYSE:MOT) and Accredited Home Lenders Holding Co. (NASDAQ:LEND).

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

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

Volatility Index S&P 500 Options-VIX down .35 to 11.10.

AtheroGenics Inc. (NASDAQ:AGIX) derivatives high risk, option volume up traders prepare for data. AtheroGenics focuses on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases. AtheroGenics is expected to announce results for top line data from the ARISE Phase 3 trial on AGI-1067 (coronary heart disease treatment.) AGIX said on 1/8/07 the data "will likely be available no sooner than late first quarter." AtheroGenics call option volume of 27,881 contracts compares to put volume of 14,119 contracts. AtheroGenics April 12.5 straddle is at $11 dollars, according to Track Data, suggesting large risks.

Option volume leaders today were: Motorola Inc. (NYSE:MOT), Apple, Inc.(NASDAQ:AAPL), CountryWide Financial Corp. (NYSE:CFC), Caterpillar Inc. (NYSE:CAT) and U.S. Steel Corp. (NYSE:X).

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

stocks rose Monday as 10-year interest rates moved up to 4.66%. The Dow closed up 0.26%, NASDAQ 100 up 0.26%, S&P 500 up 0.27%, and the 10-year bond rate rose to 4.660%. Volatility Index S&P 500 Options-VIX closed down 0.23 to 11.91.

The Gap Implied Volatility & Volume Increases After CNBC's Faber Says Goldman Hired

The Gap Inc. (NYSE:GPS), is the San Francisco-based parent company of 3,200 Gap, Old Navy & Banana Republic stores. GPS closed Monday up $1.37 to $20.26 after CNBC's David Faber reported Goldman Sachs was hired to explore strategic alternatives. GPS CEO Paul Pressler has been operating GPS for over four years. The Los Angeles Times reported a story on January 6 2007 that quoted analysts as saying they expect GPS to make some type of change. GPS call option volume of 21,511 contracts compares to put volume of 17,152 contracts. GPS February option implied volatility of 35 is above its 26-week average of 30, according to Track Data, suggesting larger price fluctuations.

U.S. stocks were lower on an increase in December new job creation and higher wages. Interest rates rose. The Dow was down 0.62%, NASDAQ 100 down 0.76%, S&P 500 down 0.58%, and the 10-year bond rate rose to 4.646%. Volatility Index S&P 500 Options-VIX rose .56 to 12.07.

• Global Payments Inc.'s (NYSE: GPN) implied volatility increases: Global sells off on tighter guidance. Global Payments is recently down $8.15 to $40.90 after the company lowered its 2007 revenue guidance. Goldman Sachs said, "we believe key questions remain: 1) Is Western Union exerting significant pressure in the Mexico money transfer market, and when (in the November quarter, or in the current February quarter) did the pricing environment begin to deteriorate? How significant are the pricing changes?" Global Payments' call option volume of 5,689 contracts compares to put volume of 1,723 contracts. February option implied volatility of 35 is above its 26-week average of 29, according to Track Data, suggesting larger price risks.

U.S. stocks were slightly higher on light trading volume. The Dow was up 0.45%, the NASDAQ 100 up 0.35%, the S&P 500 up 0.35%, while 10-year bond rates decreased to 4.6030%. The CBOE VIX was up .02 to 11.38.

• Telik Inc's (NASDAQ: TELK) January option implied volatility collapsed after disappointing data. Telik was recently down $11.47 to $4.79. TELK Phase 3 trails related to its cancer drug Telcyta (treatment for non-small cell lung cancer & ovarian cancer) "did not achieve statistically significant improvement in overall survival." JANY & STFL downgraded Telik to sell. Telik's January option implied volatility was at 85, according to Track Data, below a level of 215 from last week, suggesting decreasing risk.
  

• Eli Lilly's (NYSE: LLY) January 55 calls were active on 6,163 contracts as Lilly rallies. Eli Lilly recently rallied .43 to $51.77, after a Court of Appeals for the Federal Circuit in Washington, D.C. ruled its 2011 Zyprexa patent was valid. Lilly faced pressure last week on documents leaked to the NY Times indicating Zryprexa (schizophrenia treatment) had understated weight gain and diabetes risk. Lilly's Zyprexa accounts for approximately 25% of Lilly's sales & 50% of its EPS. Lilly's January option implied volatility of 19 was near its 26-week average of 19, according to Track Data, suggesting non-directional risks.
  

• U.S. Bancorp's (NYSE: USB) calls active on company going ex-dividend on 12/27/06. USB goes ex-dividend on 12/27/06, paying a dividend of .40 cents. USB total intra-day call option volume was heavy on over 962,946 contracts, according to Track Data. Heavy call volume was attributable to traders hoping to take advantage of option exercises, call pricing discrepancies and low option transaction commission fees.
  

Liquid stocks with option implied volatility above 90, according to Track Data: AtheroGenics (NASDAQ: AGIX), Momenta Pharmaceuticals (NASDAQ: MNTA), Dendreon Corp (NASDAQ: DNDN), Escala Group (NASDAQ: ESCL), and Northfield Laboratories (NASDAQ: NFLD).

Option volume leaders today were Telik Inc, Altria Group (NYSE: MO), Clear Channel Communications (NYSE: CCU), and Apple Computer (NASDAQ: AAPL).

Options analysis provided by Paul Foster, options strategist for Theflyonthewall.com.