Goldman Sachs (NYSE: GS) volatility increase suggests greater Crises. GS is recently down $7.62 to $169.99. GS September option implied volatility of 57 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) implied volatility increase suggests greater Crises. BSC is recently down $2.31 to $107.41. James E. Cayne is chairman of the board and CEO of BSC. BSC has been a board member since 1985. BSC call option volume of 7,419 contracts compares to put volume of 10,103 contracts. BSC September option implied volatility of 78 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Lehman (NYSE: LEH) September volatility of 73 above 26-week average of 33. LEH is recently down $2.55 to $54.79. LEH call option volume of 18,902 contracts compares to put volume of 33,956 contracts. LEH August 55 straddle is priced at $4.60. LEH September option implied volatility of 73 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) September volatility elevated at 75; August straddle at $12.70.

• BSC is recently down $3.89 to $111.80.
  
• S&P revised BSC outlook to Negative from Stable.
  
• BSC call option volume of 16,664 contracts compares to put volume of 39,448 contracts. BSC August straddle at $12.70. BSC September option implied volatility of 75 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Countrywide Financial (NYSE: CFC) put volume heavy; August straddle at $9.

• CFC, the largest U.S. home mortgage lender, is recently down $1.63 to $25.14.
  
• CFC call option volume of 17,165 contracts compares to put volume of 58,859 contracts. CFC August straddle is priced at $9. CFC September option implied volatility of 117 is above its 26-week average of 43 according to Track Data, suggesting larger price risks.

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