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

Volatility Index S&P 500 Options-VIX down .07 to 10.15.

General Motors-(NYSE:GM) option implied volatility increases to 37: Dow Jones says "GM in talks to purchase Chrysler." General Motors is recently down .41 to $36.02. Dow Jones reported "GM in talks to purchase Chrysler Group." GM call option volume of 22,023 contracts compares to put volume of 43,510 contracts. General Motors March option implied volatility of 35 is below its 26-week average of 40 according to Track Data, suggesting decreasing price risks.

DaimlerChrysler-(NYSE:DCX) option implied volatility Spikes on Dow Jones report on GM. DaimlerChrysler is recently up $2.69 to $72.85. Dow Jones reported: "General Motors in talks to purchase Chrysler Group." DCX call option volume of 24,099 contracts compares to put volume of 5,947 contracts. DaimlerChrysler March option implied volatility of 31 is above a level from 22 yesterday and above its 26-week average of 25 according to Track Data, suggesting larger price risks.

Option volume leaders today were: Google (NASDAQ:GOOG), Best Buy (NYSE: BBY), Apple, Inc. (NYSE:AAPL) and Microsoft (NASDAQ:MSFT).

Daily Option Update - February 16, 2007 originally appeared on BloggingStocks on Fri, 16 Feb 2007 14:00:00 EST. Please see our terms for use of feeds.