Sprint (S) is expected to report Q4 EPS on February 10. January 5 calls are active on total call option volume of 73K (19K puts). March call option implied volatility is at 48, May is at 39, August and January is at 36, compared to its 26-week average of 52, according to Track Data, suggesting larger price movement.

Proshares UltraShort 20+ Year Treasury ETF (TBT) overall option implied volatility is flat at 32, according to Track Data, suggesting non-directional price movement.

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

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"My 2011 stock market 'top pick' would be a 4-fund growth portfolio," suggests Jim Lowell.

The editor of Fidelity Investor explains, "This would include a 30% position in Fidelity Focused Stock (FTQGX) and 30% in the iShares Dow Jones US Index (IYY), coupled with 10% in ProShares UltraShort 20+ Year Treasury (TBT) and 10% in Fidelity Floating Rate High Income (FFRHX).

The activity in the Treasury market over the last couple of days has been eye opening to say the least. Bonds have been absolutely crushed, and the yield on the 10-Year note has exploded through the 3% level to 3.27%. On a very short-term basis, this move looks to be too much too soon, and Treasuries appear to be oversold. On a longer-term basis, this market may implode if credit and inflation concerns creep into the picture down the road -- not an unlikely outcome.

Observers are pointing to a number of factors that are causing yields to rise. Some market participants are viewing this development as an indicator that investors are beginning to price in more robust growth going into 2011. This would be a good thing. If this is in fact the case, a major stock market move could occur in very short order.

McDonald's (MCD) is expected to report November sales on December 8. Overall option implied volatility of 18 is near its 26-week average of 20, according to Track Data, suggesting nondirectional price movement.

Proshares UltraShort Barclays 20 Year Treasury ETF (TBT) overall option implied volatility of 37 is above its 26-week average of 34, according to Track Data, suggesting larger price movement.

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

Some of the stocks for investors to watch on Thursday include:

Limited Brands (LTD) reported its Q3 earnings at 18 cents per share, up from 5 cents a share in the year-ago period. The company's sales came in at $1.98 billion, up from $1.77 billion, in the year-ago quarter. LTD shares surged 5.11% to $33.50 in after-hours trading.

Wall Street expects Dell (DELL) to report its Q3 EPS at 33 cents. DELL shares gained 0.67% to $13.44 in the after-hours trading session.

Proshares UltraShort Barc 20 Year Treasury ETF (TBT) closed at $50.01. The Federal Reserve Board raised the rate charged to banks for direct loans by a quarter of a point to 0.75%. TBT March call option implied volatility is at 21, puts at 23; June is at 23, puts at 26; September calls are at 23, puts at 28, below its 26-week average of 32, according to Track Data, suggesting decreasing price movement.

Freeport McMoRan (FCX) closed at $76.60. Copper futures are recently down 0.56% according to Bloomberg. March call option implied volatility is at 42, puts at 45; May calls are at 43, puts at 47; verses its 26-week of average of 48, according to Track Data, suggesting non-directional price movement.

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

Large and rapidly growing deficits and public debt at the federal and state level will eventually lead to a rise in interest rates and to the crowding out of other spending as governments service debt. This will likely start near the end of this year or early in 2011.

And please don't blame the Democrats, the party of fiscal rectitude. The Republicans doubled the debt while they controlled the White House and Congress, financing a war off balance sheet, led by a cheerleader in chief who told people to go shopping rather than tighten their belts after 9/11. And historically, red-staters spend more on their key constituents than the Dems, so if they grab power, nothing will change.

"The UltraShort 20+ Year Treasury ProShares (TBT) is a bet on higher long-term interest rates," says Jack Adamo.

In his Insiders Plus newsletter, the advisor explains,"The fund is structured to respond at double the inverse of U.S. Treasuries of 20 years or longer.

E-House Holding (NYSE: EJ) a provider of real-estate brokerage services in China, closed at $20.96. EJ October option implied volatility is at 72, November is at 75, near its 26-week average according to Track Data, suggesting non-directional price movement.

Proshares UltraShort Barc 20 Year Treasury ETF (NYSE: TBT) closed at $43.79. TBT October option implied volatility of 31; November is at 32; below its 26-week average of 34, according to Track Data, suggesting decreasing price movement.

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

Proshares UltraShort Barc 20 Year Treasury ETF (NYSE: TBT) closed at $57.14. TBT June option implied volatility is at 48, above a level of 36 from May 21 and above its 23-week average of 45, according to Track Data, suggesting larger price movement.

ProShares UltraShrt Lehman 7-10 Yr ETF (NYSE: PST) closed at $58.48. PST July call option implied volatility is at 24, above a level of 17 from May 21, and near its 19-week average of 23, according to Track Data, suggesting increasing price movement.

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