Countrywide Financial-(NYSE-CFC) Put volume & implied volatility Spikes on sell off. CFC, the largest U.S. home mortgage lender, is recently down $3.16 to $21.40. CFC call option volume of 98,035 contracts compares to put volume of 191,635 contracts. CFC September option implied volatility of 141 is above its 26-week average of 55 according to Track Data, indicating larger price fluctuations.

ExxonMobil-(NYSE-XOM) September implied volatility of 31 above 26-week average of 24. XOM is recently up .65 to $83.76. Crude oil futures are up 1.02% to $73.12 according to Bloomberg. XOM September option implied volatility of 31 is above its 26-week average of 24 according to Track Data, suggesting larger price fluctuations.

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

Volatility Index S&P 500 Options-VIX down 1.07 to 15.37

Sovereign-SOV call volume- implied volatility spikes on sharp Rally on STD Chatter. SOV, a $90 billion financial institution with nearly 800 community banking offices, is recently up $1.78 to $26.23. STD owns approximately 20% of SOV and is entitled in 2008 to purchase the remainder of the bank for $40 as share. Bank of America say's "we believe the landscape for foreign bank acquisitions of U.S. banks is fairly limited to nine major players." SOV call option volume of 5,695 contracts compares to put volume of 808 contracts. SOV April option implied volatility is at 34 above a level of 28 on 3/13 and above its 26-week average of 26 according to Track Data, suggesting larger price risks.

Wal-Mart Stores-WMT option implied volatility of 20 suggests Flat Risk. WMT is trading up .62 to $46.68. Merrill Lynch upgraded WMT to Buy from Neutral. WMT will be holding an analyst and investor field trip in Canada on 3/21/07. WMT call option volume of 4,484 contracts compares to put volume of 3,624 contracts. WMT April option implied volatility of 20 is near its 26-week average of 20 according to Track Data, suggesting non-directional price risks.

Option volume leaders today were: Accredited Home Lenders (NYSE-LEND), Newmont Mining (NYSE-NEM) & Google (NASDAQ-GOOG).