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.

Apple Computer, Inc. (NASDAQ:AAPL) has hired the general counsel of International Business Machines (NYSE:IBM) for its own general counsel. Donald Rosenberg had been with IBM for some 30 years, but was just named general counsel at IBM back in early 2006. Prior to being the general counsel at IBM, he was the manager of IBM's litigation activities. Rosenberg will report to Steve Jobs with the title Senior Vice President & General Counsel.

Rosenberg brings a history of overseeing litigation, intellectual property protection, securities, Department of Justice and SEC negotiations, and policy.

While most articles are noting that Rosenberg is joining weeks after Apple's CEO, Steve Jobs, admitted that he knew of the options irregularities, most also expect Jobs to escape the options probe without losing his head. So the focus in hiring Rosenberg may be more sweeping than any single event.

As Apple has taken the lead in digital music and as it has been storming directly into all digital media, this move could be interpreted as taking a more aggressive stance in protecting the company's intellectual properties and to facilitate negotiations with competitors and partners alike.

Jon Ogg is a partner at 24/7 Wall St.