Apple (NASDAQ: AAPL) October implied volatility at 39 into Citigroup raising target to $185.

• AAPL is recently up $1.05 cents to $145.20 in pre-open trading.
  
• Citigroup Smith Barney-SBSH says: "We are raising FY08 and FY09 earnings estimates to reflect higher gross margin and lower operating expense assumptions. Our above-consensus estimates suggest a new twelve-month target of $185. We remain buyers of AAPL."
  
• AAPL is expected to report EPS in mid-October.
  
• AAPL October option implied volatility of 39 is below its 26-week average of 42 according to Track Data, suggesting decreasing price movement.

AMR Corp (NYSE: AMR) implied volatility Flat prior to weak 3Q investor Update.

• AMR closed at $24.26.
  
• Soleil Securities says: "On the heels of a somewhat disturbing mid-quarter update from AMR that was released late Friday, we are slashing earnings estimates, cutting our target price to $24 from $33, and reducing our investment rating to Hold from Buy."
  
• WTI Crude futures are down 1.13% to $80.70 according to Bloomberg.
  
• AMR October option implied volatility of 50 is near its 26-week average according to Track Data, suggesting non-directional risk.

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