IBM (IBM) closed at $130.57. IBM is expected to report Q4 EPS on Jan. 19. January option implied volatility is at 16, February is at 21, April is at 22; below its 26-week average of 24 according to Track Data, suggesting decreasing price movement.

Cadbury PLC (CBY) closed at $50.81. The European Commission's has a Jan. 6 deadline for reviewing Kraft's (KFT) plan to buy CBY. Cadbury, the world's second largest confectioner, rejected Kraft's buyout bid in November. Hershey (HSY) and Italy's Ferrero have said they are considering rival offers for Cadbury. January call option implied volatility is at 26, puts at 29, March volatility is at 27; verses its 26-week average of 27, according to Track Data.

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

Cadbury PLC (CBY) closed at $53.37. Cadbury, the world's second largest confectioner, rejected Kraft's (KFT) buyout bid on Nov. 9. CBY December option implied volatility is at 26, March is at 23, versus its 26-week average of 29, according to Track Data, suggesting decreasing price movement.

ishares NASDAQ Biotechnology Index (IBB) closed at $78.41. IBB December and January call volatility is at 19, puts are at 22, versus its 26-week average of 23, according to Track Data, suggesting non-directional price movement.

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

Kraft Foods (NYSE: KFT) is expected to report Q3 EPS on November 3. KFT's $16.7 billion bid for Cadbury PLC (NYSE: CBY) was rejected by CBY in September. KFT faces a November 9 deadline set by the U.K. Takeover Panel to make a formal offer for CBY. KFT November option implied volatility is at 25, December is at 24; versus its 26-week average of 25, according to Track Data, suggesting non-directional price movement.

iShares Trust FTSE/Xinhua China 25 Fund (NYSE: FXI) is recently up $1.30 to $43 in pre-open trading. FXI is an index fund that seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index. FXI overall option implied volatility of 38 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

Cadbury PLC (NYSE: CBY) rejected Kraft (NYSE: KFT) $16.7B for CBY on September 7. CBY over all option implied volatility of 27 is below its 26-week average of 33, according to Track Data, suggesting decreasing price movement.

MSCI Emerging Markets Index (NYSE: EEM) is recently closed at $39.28. EEM October option implied volatility is at 31, November is at 33; below its 26-week average of 39, according to Track Data, suggesting decreasing price movement.

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

Hershey (NYSE: HSY) closed at $40.49 Wednesday. Cadbury PLC (NYSE: CBY), the world's second largest confectioner, rejected Kraft (NYSE: KFT) $16.7 billion for CBY on September 7, which has led analysts to speculate about additional merger possibilities.

HSY September and October option implied volatility is at 27 is near its 26-week average of 29. HSY options were active on September 9th with volume of 52,364 contracts according to Track Data.

ISE Sentiment Index - ISEE closed at 127 on 9/9/09. ISEE 10-day moving average is 114.

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