When Gap Stores (NYSE: GPS) installed Glenn Murphy as its chairman and CEO, he was hailed as a savvy retailer whose marketing know-how would compensate for his lack of fashion industry experience. In its press release announcing the hiring, Gap declared that:

During his more than 20 years of experience in retail, Mr. Murphy successfully reinvigorated retail brands in the areas of food, health and beauty, and books. Most recently, at Shoppers Drug Mart, he differentiated the brand with new products and better service, and grew the company's market capitalization from about CAD $3 billion to over CAD $10 billion following its public offering . . .

Nearly 11 months into his tenure, the reinvigoration hasn't exactly happened: June comparable store sales fell 14% which, even allowing for the tough retail environment, isn't too impressive. But Murphy has made progress on other fronts and, so far, his main accomplishment has been cost-cutting.

Google Inc. (NASDAQ: GOOG) recently trading up $15.29 to $609.20.

GOOG is expected to report earnings per share (EPS) on October 18th. GOOG October at the money 580 straddle is priced at $32.10. GOOG October option implied volatility of 38 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

The Gap Inc. (NYSE: GPS) CEO Glenn Murphy hosted a meeting with analysts on October 5th.

Smith Barney says "Mr. Murphy is focused on making the company gets an adequate return on its investments. This includes a focus on the expense of the business. We suspect there will be continued focus on moderating the cost structure and assessing various cost components, including marketing. We think the real estate portfolio is under review." GPS over all option implied volatility of 31 is near its 26-week average according to Track Data, suggesting flat price risk.

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

Gap Inc. (NYSE: GPS) volatility Elevated into new CEO. GPS, the San Francisco based parent company of 3,200 Gap, Old Navy, and Banana Republic stores, appointed Glenn Murphy, 45, to serve as GPS's Chairman and CEO and as a member of the Board of Directors. Smith Barney upgraded GPS to Buy. SBSH says: "The new CEO can positively impact customer focus and in-store experience." GPS over all option implied volatility of 31 is above its 26-week average of 29 according to Track Data, suggesting larger price fluctuations.

Target Corp. (NYSE: TGT) volatility increases; TGT sells off after Ackman announces position. TGT closed at $62.10. William Ackman's Pershing Square owns a 9.6% position in TGT. Robert Ulrich, TGT's Chairman of the Board, filed to sell one million shares of TGT on 7/12 through SEC form 144. TGT August option implied volatility of 35 is above its 26-week average of 24 according to Track Data, suggesting larger price risks.

GlaxoSmithKline (NYSE: GSK) volatility Elevated into 7/30 FDA meeting on Avandia. GSK closed at $49.63. A FDA advisory committee meeting on 7/30/07 will review GSK's diabetes drug Avandia. The New England Journal of Medicine carried a story on 5/21 saying, Avandia "significantly increases" the risk of heart attack. Cowen says: "It is difficult to envision what GSK could present that would significantly alter FDA and prescriber sentiment." GSK August option implied volatility of 30 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

General Motors Corp. (NYSE: GM) volatility Elevated on tighter credit and into 7/31 EPS. GM closed at $31.10. GM will report EPS on July 31st. GM August over all option implied volatility of 53 is above its 26-week average of 37 according to Track Data, suggesting larger risk.

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