US Steel (NYSE: X) volatility Up on unconfirmed chatter that Atticus is building stake. X is recently down $3.18 to $89.49. Unconfirmed chatter is circulating that Atticus Capital has acquired a 10% stake in X. X September option implied volatility of 45 is above its 26-week average of 38 according to Track Data, suggesting larger price fluctuations.

TiVo (NASDAQ: TIVO) calls active as TIVO trades near 10-month high. TIVO, a digital video recorder provider, is recently up 64 cents to $7.01. TIVO has a market cap of $682 million. TIVO September 7.5 calls have traded 25 times on transaction volume of 1,300 contracts above its open interest of 435 contracts. TIVO September option implied volatility of 57 is near its 26-week average according to Track Data, suggesting non-directional risk.

Brinker (NYSE: EAT) volatility up; EAT talking to investors about selling Macaroni Grill. EAT operates restaurant concepts including; Chili's, Macaroni Grill, Maggiono's & On the Border. Goldman Sachs says "EAT reported 4Q operating EPS of $0.57, ahead of our $0.47 estimate. The overage came largely from a lower tax rate, share count, and modest expense variance." Dow Jones reported EAT "is talking with a 'number of investors' about the possible sale of its Romano's Macaroni Grill chain." EAT September option implied volatility of 33 is above its 26-week average of 29 according to Track Data, suggesting larger risk.

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

Option update: US Steel's (X) volatility up on Atticus Capital rumors originally appeared on BloggingStocks on Thu, 09 Aug 2007 13:15:00 EST. Please see our terms for use of feeds.

General Electric Co.'s (NYSE:GE) tax rate will be lower than the company said at the beginning of the year. It will also be better than 2005.

The Wall Street Journal says that tax breaks added $200 million to GE's net income for the first three quarters of 2006. Total net income for the period was $14.1 billion. The tax rate for the period was 17.2% compared to 18.7% for the first nine months of last year.

Some of the folks on Wall St. are worried that a wind-fall of tax benefits could mask weaknesses in GE's earnings as well as weaknesses at operations like the company's big plastics division. The issue is a tempest in a teapot.

If Wall St. analysts, who make a couple of million a year, cannot model GE's figures with any accuracy, it is hard to say why they are paid such a kingly sum. Blaming the company is always a good way to get off the hook, despite a number of industry reports that would indicate how divisions like plastics are doing. Often, a company like GE may not be the best source for information on its own divisions.

Also, GE's problems are much deeper than tax rates. At $35, the stock has not risen this year and is well down from Jack Welch's days. Analysts and investors alike are concerned that the company is too complex and that tracking all of its divisions is too difficult. Many argue that dog divisions like NBC Universal should be spun-out to shareholders so they can watch the stock in the new unit fall.

Of course, the market is often the best gauge of whether issues like the tax rate matter. GE's stock is up 0.25% on lower than usual volume, so you can be the judge.

Douglas A. McIntyre is a partner at 24/7 Wall St.

GE's lower tax rate confuses Wall St. -- should it? originally appeared on BloggingStocks on Fri, 08 Dec 2006 14:20:00 EST. Please see our terms for use of feeds.