Williams Companies (WMB) will separate into two stand-alone, publicly traded corporations. The plan calls for Williams to separate its exploration and production business via an initial public offering in 3Q 2011 of up to 20% of its interest and, in 2012, a tax-free spinoff to Williams shareholders of its remaining interest. Overall option implied volatility of 41 is above its 26-week average of 37, according to Track Data, suggesting larger price movement.

MSCI Brazil Index (EWZ) overall option implied volatility of 26 is near its 26-week average of 27, according to Track Data, suggesting nondirectional price movement.

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

American Int'l Group (AIG) closed at $29.14. The Federal Reserve Bank of New York, then led by current Treasury Secretary Timothy Geithner, told American Intentional Group to withhold details from the public about the bailed out insurer's payments to banks during the height of the financial crisis, Bloomberg New reported Thursday. February call option implied volatility is at 54, puts at 63; May calls are at 53, puts at 71; below its 26-week average of 89 according to Track Data, suggesting decreasing price movement.

MSCI Brazil Index (EWZ) closed at $77.03. Brazil Bovespa Stock Index closed up .70% to 70.729.34 according to Bloomberg. EWZ January option implied volatility is at 31, February is at 34, March calls are at 33, puts at 37; near its 26-week average of 39, according to Track Data, suggesting non-directional price movement.

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

Sara Lee (NYSE: SLE) closed at $10.54. Unilever (NYSE: UN) agreed to buy SLE's personal-care and European detergent unit for $1.88 billion. SLE's board of directors authorized a $1 billion share repurchase program. SLE October option implied volatility is at 39, November is at 38; near its 26-week average of 38 according to Track Data, suggesting non-directional price movement.

MSCI Brazil Index (NYSE: EWZ) is recently up 37 cents to $65.04 in pre-open trading. Brazil Bovespa Stock Index is up 0.1%. EWZ call option volume of 14,379 contracts compares to put volume of 22,765 contracts. EWZ October option implied volatility is at 37, October and January is at 38; below its 26-week average of 45, according to Track Data, suggesting decreasing price movement.

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

MSCI Brazil Index (NYSE: EWZ) closed at $55.63. Brazil Bovespa Stock Index is up 54%. EWZ June option implied volatility is at 58 July is at 53; below its 26-week average of 61, according to Track Data, suggesting decreasing price movement this summer.

Financial Select Sector (NYSE: XLF) overall volatility at 49; 26-week average is 65.

ISE Sentiment Index-ISEE closed at 144 on 6/8/09. ISEE 10-day moving average is 135.

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