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.

ImClone (NASDAQ: IMCL) implied volatility elevated prior to positive Erbitux data.

• IMCL, an oncology care company, is recently trading up $11.05 to $48.98 in pre-open trading.
  
• Merck KGaA & IMCL announced that Erbitux met the primary endpoint outcomes from the FLEX trial (a phase 3 study of 1000 patients with previously untreated non-small cell lung cancer).
  
• Goldman Sachs says, "Erbitux data in lung cancer positive for IMCL, Minor neg for DNA."
  
• IMCL October option implied volatility of 46 is above its 26-week average of 40 according to Track Data, suggesting larger price risks.

Genentech (NYSE: DNA) September volatility at 21 prior to IMCL's NCSCLC data.

• DNA is recently trading at $76 in pre-open trading, below its close of $79.15.
  
• Merck KGaA & IMCL announced that Erbitux met the primary endpoint outcomes from the FLEX trial (a phase 3 study of 1000 patients with previously untreated non-small cell lung cancer (NSCLC).
  
• DNA September option implied volatility is at 21; October is at 25. DNA's average option implied volatility over the last 26-weeks is 24 according to Track Data, suggesting non-directional near term price fluctuations.

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

Nordstrom (NYSE: JWN) - overall implied volatility Elevated into EPS. JWN is expected to report EPS of .68 cents on 8/23 according to Thomson First Call. STFL say's "we believe JWN is successfully leveraging its sales success with operational improvements, better systems and well managed expenses." JWN over all option implied volatility of 42 is above its 26-week average of 30 according to Track Data, suggesting larger price risks.

TJX Cos (NYSE: TJX) - implied volatility Elevated into 8/14 EPS & Outlook. TJX, an off-price retailer with 1,530 T.J. Maxx & Marshall stores, is recently up .35 to $27.87. TJX is expected to report 2Q EPS of .36 cents on 8/14. Buckingham has a Strong Buy rating and $34 price target on TJX. BUCK say's "remains one of our top picks in the current weak retail environment." TJX over all option implied volatility of 35 is above its 26-week average of 25 according to Track Data, suggesting larger risks.

Office Depot (NYSE: ODP) - all volume & volatility Elevated as ODP near 2-year lows. ODP is recently up .34 to 23.74. ODP has a market cap of $6.4 billion. ODP September 25 calls have traded 404 times on transaction volume of 8,018 contracts above its open interest of 1,038 contracts. ODP September option implied volatility of 47 is above its 26-week average of 29 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX at down 2.25 to 26.08.

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

EMC (NYSE: EMC) implied volatility Elevated at 53 into VMware IPO. EMC closed Friday at $17.72. VMware, an EMC company, is the global leader in virtual infrastructure software for industry standards. VMware is expected to be spun out of EMC this week. Morgan Keegan said on August 10, "We estimate a fair value range of $18.90-$25.33 for EMC shares. This range assumes $12.90 per share for the core EMC business and $6.00-$12.43 per share for VMware." EMC September option implied volatility of 53 is above its 26-week average of 28 according to Track Data, suggesting larger risk.

E-Trade (NYSE: ETFC) volatility Elevated on concerns of mortgage portfolio. ETFC closed Friday at $17.01. Smith Barney says, "Disclosure in 10-Q short on substance from our viewpoint. Management provided minimal new information on the composition of its $28 billion mortgage portfolio." ETFC overall option implied volatility of 55 is above its 26-week average of 35 according to Track Data, suggesting larger price fluctuations.

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

Honeywell International Inc. (NYSE: HON) -- implied volatility Elevated as traders purchase premium into EPS. HON is recently up 35 cents to $58.17. HON will report EPS before the open on 7/19. HON has four business groups: Aerospace, Automation & Control Solutions, Specialty Materials and Transportation Systems. HON July option implied volatility of 23 is above its 26-week average of 21 according to Track Data, suggesting larger risk.

Sprint Nextel Corp. (NYSE: S) -- July calls active on renewed take-over chatter. S, an operator of a wireless network serving 53.6 million customers, is recently up $0.63 to $22.03 on renewed and unconfirmed takeover chatter. S call option volume of 12,196 contracts compares to put volume of 198 contracts. S overall option implied volatility of 30 is near its 26-week average of 29 according to Track Data, suggesting non-directional risks.

Whole Foods Market, Inc. (NASDAQ: WFMI) -- calls active on Flat volatility on unconfirmed takeover chatter.

Option volume leaders today are: Pfizer Inc. (NYSE: PFE), AK Steel Holding Corp. (NYSE: AKS) and Apple Inc. (NASDAQ: AAPL).

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