Microsoft (NASDAQ: MSFT) proposed the acquisition of Yahoo (NASDAQ: YHOO) for $31 per share on Feb. 1. MSFT offer is payable in $31 cash or 0.9509 per share of MSFT. MSFT closed at $28.42 Friday.

MSFT over all option implied volatility of 31 is above its 26-week average of 27 according to Track Data, suggesting larger price movement.

Target (NYSE: TGT) is scheduled to release Q4 on Feb. 26.

BMO Capital said on Feb. 13, "We're maintaining our Underperform rating until earnings visibility improves."

TGT over all option implied volatility of 49 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

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

Apple (NASDAQ: AAPL) is recently trading down $17.08 to $138.59. AAPL reported first-quarter profits of $1.58 billion, on revenue of $9.6 billion. AAPL estimates second-quarter revenue of $6.8 billion.

BMO Capital says, "AAPL released results that failed to live up to the overly exuberant expectations, particularly on iPods and CPUs." AAPL February option implied volatility of 69 is above its 26-week average of 51 according to Track Data, indicating larger movement.

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

Apple (NASDAQ: AAPL) is recently up $0.63 to $171.17 in pre-open trading.

• AAPL will report Q4 EPS after the close tonight.
  
• BMO Capital says: "AAPL is well positioned for the holiday season with a strong product line-up – iPhone in the US and Europe, refreshed iPods and iMacs plus Leopard."
  
• AAPL November option implied volatility of 59 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

AT&T (NYSE: T) is expected to report EPS of 71 cents on 10/23 according to Thomson First Call.

• CIBC World says: "we expect strong results led by wireless and enterprise."
  
• T November option implied volatility of 29 is above its 26-week average of 26 according to Track Data, suggesting larger risk.

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

Jabil Circuit Inc (NYSE: JBL) has been down in the dumps lately, down 17% over the last year, while competitor Flextronics International (NASDAQ: FLEX) has profited, up over 7%. But that may be about to change for Jabil -- after 3 consecutive bad quarters, it has given investors reason for optimism, posting better-than expected third quarter earnings results.

Wall Street certainly noticed, as Credit Suisse, RBC Capital Markets and BMO Capital all upgraded Jabil to Outperform this morning.

Still, technically speaking, the primary overhead resistance for Jabil to break out of this long-term downtrend is at $25.65, which is still a ways from the stock's current price of $23.42 -- which includes this morning's 10% move to the upside. So far so good for Jabil, but a long-term change in investor sentiment and momentum will only be seen if it breaks above the resistance. Keep and eye out and see if it keeps heading up.