Goldman Sachs(NYSE:GS) volatility Elevated: Fed lowers discount window rate to 5.75% from 6.25%. GS is recently trading at $178.29 in pre-opening trading above its close of $169.85. The Fed lowered discount window rate to 5.75% from 6.25%. GS August 165 straddle was priced at $5.95. August options expire on 8/17. GS September option implied volatility of 57 is above its 26-week average of 32 according to Track Data, suggesting larger price fluctuations.

Bear Stearns(NYSE:BSC) volatility Elevated:BSC is recently at $122.60 above its close of $116.44 close. The Fed lowered discount window rate to 5.75% from 6.25%. BSC August 105 straddle is priced at $5.40. August options expire on 8/17. BSC September option implied volatility of 70 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Lehman(NYSE:LEH) volatility Elevated:LEH is recently trading at $58.30 in pre-open trading above its close of $54.75. The Fed lowered discount window rate to 5.75% from 6.25%. LEH August 55 straddle is priced at $3.00. August options expire on 8/17. LEH September option implied volatility of 75 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

Countrywide Financial(NYSE:CFC) volatility Elevated: CFC, a U.S. home mortgage lender, is recently trading at $22.29 in pre-open trading, above its close of $18.95. The Fed lowered discount window rate to 5.75% from 6.25%. CFC over all option implied volatility of 153 is above its 26-week average of 58 according to Track Data, indicating larger price fluctuations.

Volatility Index S&P 500 Options-VIX down 5.01 to25.82; ten-day moving average is 26.16, according to Track Data.

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