CBS Corporation (NYSE: CBS) option implied volatility at record levels:

Reasons for the volatility:

1) Chairman Sumner Redstone, the largest shareholder, publicly feuding with her daughter and heir apparent, Shari Redstone.

2) CBS Radio facing increased competition if the Federal Communications Commission (FCC) allows Sirius Satellite Radio Inc. (NASDAQ: SIRI) and XM Satellite Radio Holdings, Inc. (NASDAQ: XMSR) to merge. The leader of the combined SIRI company would be current SIRI CEO Mel Karmazin, a past leader of CBS Radio and Viacom, Inc. (NYSE: VIA).

3) Decreasing broadcasting revenue growth guidance.

4) The expectations of a CBS News and Katie Couric partnership-spin-out.

CBS has a market cap of $18.8 billion with long term debt of $7 billion. CBS had September 2007 quarterly total income of $3.2 billion. CBS over all option implied volatility of 31 was above its 26-week average of 25 according to Track Data, suggesting non-directional price fluctuations.

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