Merck (NYSE: MRK) is recently trading at $25.54 in pre-open trading, below its close of $26.46. MRK expects 2009 top-line growth will be offset by the effects of a volatile global economy. MRK December option implied volatility of 70 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Allergan (NYSE: AGN) discovers and develops specialty pharmaceutical products. AGN closed at $36.20. AGN's Latisse (Bimatoprost for eyelash growth) PDUFA date is expected in mid-year 2009. AGN December option implied volatility is at 76, July is at 55; above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Celgene (NASDAQ: CELG), a biopharmaceutical company, closed at $52.60. CELG's Revlimid's (non-Hodgkin's lymphoma treatment) incremental Phase 3 data on Revlimid in first line multiple myeloma is expected at the American Society of Hematology (ASH) meeting on December 6 to December 9. CELG December option implied volatility of 75 is above its 26-week average of 53 according to Track Data, suggesting larger price movement.

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

Research in Motion (NASDAQ: RIMM) is recently down $2.32 to $35 in pre-open trading. RIMM lowered Q3 earnings guidance. Deutsche Bank has a Sell rating on RIMM. RIMM December option implied volatility of 140 is above its 26-week average of 72 according to Track Data, suggesting larger price movement.

Motorola (NYSE: MOT) closed at $4.27. MOT overall option implied volatility of 95 is above its 26-week average of 69 according to Track Data, suggesting larger price movement.

Nokia (NYSE: NOK) closed at $13.64. NOK will host Capital Markets day in New York on December 4. Smith Barney says: "Margin targets to be lowered but how bad will 09 get?" NOK December option implied volatility of 84 is above its 26-week average of 61 according to Track Data, suggesting larger price movement.

Ericsson (NASDAQ: ERIC) is recently up 10 cents to $7 in pre-open trading. Cowen says: "Reducing global handset industry, Sony Ericsson, on further weakness." ERIC overall option implied volatility of 78 is above is 26-week average of 62 according to Track Data, suggesting larger price movement.

Apple (NASDAQ: AAPL) is recently down $2.27 to $89.70 in pre-open trading. Kaufman Bros says "Maintain Buy. We continue to believe AAPL is one of the better names to own in this tough economy given its strong fundamentals." AAPL overall option implied volatility of 74 is above its 26-week average of 56 according to Track Data, suggesting larger price movement.

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

Mosaic (NYSE: MOS), a producer of crop nutrients, is recently down 81c to $24.59. MOS announced Q2 2009 results will be severely impacted by soft global demand for fertilizers. MOS December and January option implied volatility of 131 is above its 26-week average of 88 according to Track Data, suggesting larger price movements.

Palm (NASDAQ: PALM) is recently trading at $1.66. PALM negatively pre-announced Q2 results. Goldman Sachs reiterated its Sell rating on PALM. PALM overall option implied volatility of 105 is above its 26-week average of 90 according to Track Data, suggesting larger price movement.

Genentech (NYSE: DNA) is recently up $1.55 to $73.35. Roche announced on July 21 the offer to buy the balance of 44% of DNA it does not own for $89 cash. DNA December option implied volatility of 71 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

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

Johnson & Johnson (NYSE: JNJ) will purchase Mentor (NYSE: MNT) for $31 per share. MNT, a supplier of medical products closed at $16.15 Friday. MNT December option implied volatility of 92 is above its 26-week average of 55 according to Track Data, suggesting larger price movement.

JNJ is recently trading at $58.24 in pre-open trading, below its close of $58.58. JNJ says: "the transaction is expected to have a dilutive impact to JNJ 2009 earnings per share of approximately $0.03 - $ $0.05." JNJ December option implied volatility of 41 is above its 26-week average of 25 according to Track Data, suggesting larger price movement.

UnitedHealth (NYSE: UNH) closed at $21.01 Friday. UNH affirmed its previous outlook for 2008 net earnings of $2.95 to $2.98 per share. UNH rolled out www.myoptumhealth.com for general public, the initiative will compete with WebMd, Mayo Clinic Revolution Health & other health-information portals. UNH December option implied volatility of 92 is above its 26-week average of 59 according to Track Data, suggesting larger price movement.

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

ICICI Bank (NYSE: IBN), India's second largest bank IBN, closed at $13.21 Wednesday. IBN December option implied volatility of 143 is above its 26-week average of 82 according to Track Data, suggesting larger price fluctuations.

Infosys (NASDAQ: INFY), a technology services firm based in India, closed at $24.31 Wednesday. INFY December option implied volatility of 91 is above its 26-week average of 59 according to Track Data, suggesting larger price movement.

Satyam Computer Services (NYSE: SAY), a technology solution provider based in India, closed at $12.62 Wednesday. SAY over all option implied volatility of 85 is above its 26-week average of 76 according to Track Data, suggesting larger price fluctuations.

Wipro Ltd (NYSE: WIT), a technology services company based in India, closed at $7.47 Wednesday. WIT over all option implied volatility of 83 is above its 26-week average of 71 according to Track Data, suggesting larger price movement.

The Sensex rose 0.7 percent to 9,092.72 at the close in Mumbai India, the highest in almost two weeks.

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

Nucor (NYSE: NUE), an operator steel mills and marketer of steel products, closed at $32.27 Tuesday. NUE December option implied volatility of 91 is above its 26-week average of 73 according to Track Data, suggesting larger price movement.

AK Steel (NYSE: AKS), a producer of steel products, closed at $6.86 Tuesday. AKS December 7.5 straddle is priced at $2.40, January 7.5 straddle is priced at $3.50. AKS January option implied volatility of 158 is above its 26-week average of 102 according to Track Data, indicating larger price movement.

Mechel Steel (NYSE: MTL) closed at $4.59 Tuesday. MTL is a Russian mining, steel and power company. MTL December 5 straddle closed at $2.25, January 5 straddle closed at $3.15. MTL April option implied volatility of 185 is above its 26-week average of 117 according to Track Data, suggesting larger price fluctuations.

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

Google (NASDAQ: GOOG) is recently down $2.44 to $255 in pre-open trading. Thomas Weisel has a $650 target on GOOG. Smith Barney has a $450 target price for GOOG. GOOG December option implied volatility of 87 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Yahoo (NASDAQ: YHOO) closed at $10.21 Monday. Thomas Weisel has a 12-month target of $15 on YHOO. YHOO December option implied volatility of 112 is above its 26-week average of 66 according to Track Data, suggesting larger price movement.

Amazon.com (NASDAQ: AMZN) is recently down 20 cents to $42.30 in pre-open trading. Stanford Group says: "Initiate coverage of AMZN with a Sell rating and a $25 per share price target. We forecast revenue growth to decelerate materially in 2009 as retail sales declines worsen as inventory and pricing competition builds during a deep global recession." AMZN December option implied volatility of 93 is above its 26-week average of 62 according to Track Data, suggesting larger price movement.

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

American Eagle (NYSE: AEO) closed at $7.52 Friday. AEO is scheduled to report Q3 EPS on November 25. RBC Capital Markets lowered its price target to $14 from $15. AEO December option implied volatility of 120 is above its 26-week average of 74 according to Track Data, suggesting larger price movement.

Dollar Tree (NASDAQ: DLTR) closed at $35.28 Friday. DLTR is scheduled to report Q3 EPS on November 25. Deutsche Bank has a Hold rating and a $35 price target on DLTR. DLTR December option implied volatility of 84 is above its 26-week average of 59 according to Track Data, suggesting larger price movement.

Williams-Sonoma (NYSE: WSM) closed at $4.84 Friday. WSM said W. Howard Lester, Chairman & chief executive, sold about 4.2 million shares between October 29 and November 21. Lester also sold WSN shares from October 13 & 14th to cover a margin calls. WSM is scheduled to report Q3 EPS on December 4. Thomas Weisel lowered its 12-month price target from $10 to $8. WSM December option implied volatility of 168 is above its 26-week average of 68 according to Track Data, suggesting larger price fluctuations.

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

Citigroup (NYSE: C) is recently trading at $5.59 in pre-open trading, above its close of $4.71 Thursday. C November 5 straddle is priced at $1.18, December is at $2.83. C March option implied volatility of 187 is above its 26-week average of 67 according to Track Data, suggesting larger price movement.

JP Morgan Chase (NYSE: JPM) is recently trading at $25 in pre open trading, above its close of $23.38 Thursday. JPM December option implied volatility of 140 is above its 26-week average of 61 according to Track Data, suggesting larger price movement.

Wells Fargo (NYSE: WFC) is recently trading at $23.50 in pre-open trading, above its close of $22.53 Thursday. WFC purchase of Wachovia (NYSE: WB) for 0.1991 per share of WFC is expected to close in late 2008. WFC December option implied volatility of 137 is above its 26-week average of 60 according to Track Data, suggesting larger price movement.

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

UltraShort S&P 500 (NYSE: SDS) is closed at $112.94 Wednesday. SDS seeks daily investment results that correspond to twice the inverse daily performance of the S&P 500. SDS December option implied volatility of 140 is above its 26-week average of 58 according to Track Data, suggesting larger price movement.

UltraShort QQQ ProShares (NYSE: QID) closed at $89.25 Wednesday. QID seeks daily investment results that correspond to twice the inverse daily performance of the NASDAQ Index-100 Index. QID December option implied volatility of 139 is above its 26-week average of 75 according to Track Data, suggesting larger price movement.

UltraShort Financials ProShares (NYSE: SKF) is recently is recently up $1.67 to $224.50. SKF is an exchange traded fund seeking daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Financials Index. SKF December option implied volatility of 185 is above its 26-week average of 95 according to Track Data, suggesting larger price movement.

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

The CBOE Volatility Index (VIX) is recently up 3.62 to 71.26, above its 500-day moving average of 20.77, 200-day moving average of 30.38, 100-day moving average of 38.09, 50-day moving average of 53.53 and 10-day average of 64.18 according to Track Data. This suggests that the market is pricing in an upcoming soft economic depression.

Yahoo Inc. (NASDAQ: YHOO) is recently down $2.10 to $9.45. Microsoft (NASDAQ: MSFT) Chief Executive Steve Ballmer said today that talks with YHOO are "finished." Ballmer remains open to a potential search deal with YHOO. YHOO December option implied volatility of 133 is above its 26-week average of 63 according to Track Data, suggesting larger price movement.

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

Hewlett-Packard (NYSE: HPQ) is recently trading at $32.25 in pre-open trading, above its close of $29.34 Monday. HPQ reported Q4 net revenue up 19%, or $5.3 billion, from a year ago. HPQ December option implied volatility of 74 is above its 26-week average of 41 according to Track Data, suggesting larger price movement.

ICICI Bank (NYSE: IBN), India's second largest bank IBN, closed at $15.02 Monday. IBI halved its target for growth in lending to 15% - Bloomberg. The Bombay EX 100 IDX is recently down 3.65%. IBN December option implied volatility of 132 is above its 26-week average of 80 according to Track Data, suggesting larger price fluctuations.

Gap (NYSE: GPS) closed at $10.72 Monday. GPS is scheduled to report Q3 EPS on November 20. Friedman Billings anticipates GPS will set expectations for continued weak margins and heavy promotions. GPS November 10 straddle is priced at $1.50, December 10 is at $2.75. GPS December option implied volatility of 105 is above its 26-week average of 57 according to Track Data, suggesting larger price movement.

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

ConocoPhillips (NYSE: COP) closed at $47.39 Friday. WTI crude oil futures are recently down 2.16% to $55.81 according to Bloomberg. Berkshire Hathaway reported an 84 million stake in COP. COP December option implied volatility is at 80, January is at 75; is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Eaton (NYSE: ETN) closed at $41.15 Friday. Deutsche Bank has a Hold rating on ETN. Berkshire Hathaway reported a 2.9 million stake in ETN. ETN December option implied volatility of 76 is above its 26-week average of 46 according to Track Data, suggesting larger price movement.

United Therapeutics (NYSE: UTHR) is recently down $25.90 to $64.62 in pre-open trading. UTHR ph.3 FREEDOM-C trial for oral treprostinil failed to its meet endpoint. UTHR November 90 straddle went out at $21.10, December 90 straddle is priced at $27.40 according to Track Data, suggesting large price movement.

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

Medtronic (NYSE: MDT) closed at $39.93. MDT is scheduled to report Q2 EPS on November 18. MDT November 40 straddle is priced at $3.50, December 40 is at $5.50. MDT December option implied volatility of 54 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Covidien (NYSE: COV), a medical solutions device provider, closed at $37.07. COV is scheduled to report Q4 EPS on November 17. COV November 40 straddle is priced at $4.40, December 40 straddle is priced at $6.40. COV December option implied volatility of 58 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Abbott Lab (NYSE: ABT) closed at $57.14. ABT December option implied volatility of 42 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Stryker (NYSE: SYK), a medical technology company, closed at $47.70. SYK December option implied volatility of 60 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

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

AMB Property (NYSE: AMB), a global developer and owner of industrial real estate, closed at $13.25 Wednesday. Goldman Sachs says: "We remain cautious on REITS." AMB December option implied volatility of 107 is above its 8-week average of 66 according to Track Data, suggesting larger price movement.

Essex Property Trust (NYSE: ESS), a REIT with the majority of real estate consisting of apartment communities, closed at $74.33 Wednesday. ESS December option implied volatility of 81 is above its 26-week average of 51 according to Track Data, suggesting larger price movement.

AvalonBay (NYSE: AVB), an owner or indirect owner of 178 apartment communities containing 50,370 apartment homes, closed at $55.03 Wednesday. AVB December option implied volatility of 83 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

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