Kohl's (NYSE: KSS) implied volatility elevated prior to $2.5 billion stock buyback.

• KSS, an operator of 834 stores, has a market cap of $18.5 billion.
  
• KSS announced a $2.5 billion share repurchase program that is expected to be completed over the next three years. Funding for the buyback will be from operating cash flow as well as incremental debt financing.
• KSS will host an investor conference in Indianapolis on 10/2.
  
• KSS overall option implied volatility of 36 is above its 26-week average of 30 according to Track Data, suggesting larger price risks.

Apple (NYSE: AAPL) October implied volatility at 43 into mid October EPS and guidance report.

• AAPL is recently down 97 cents to $139.80 in pre-open trading.
  
• Bloomberg reported AAPL's CEO Steve Jobs was subpoenaed by the SEC to give a deposition in a backdating lawsuit against the company's former general counsel, according to two people familiar with the matter.
  
• AAPL is expected to report EPS in mid October.
  
• AAPL October option implied volatility of 43 is near its 26-week average of 42 according to Track Data, suggesting non-directional price movement.

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