CBOE Volatility Index (VIX) rises 24% to 20.03 on antigovernment protests in Egypt.

United States Oil Fund (USO) closed up 4.3% as WTI Crude futures have traded up 4.37% to $89.38, according to Bloomberg. Traders were focused on short-term February 38 calls. February put option implied volatility of 29 is below its 26-week average of 31 according to Track Data, suggesting decreasing price movement.

Option volume leaders are Apple (AAPL), Citigroup (C), Amazon.com (AMZN) and Netflix (NFLX), according to Track Data.

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

United States Oil Fund (USO) was up 1% as WTI Crude futures traded up 2.17% to $91.19 according to Bloomberg. Overall option implied volatility of 28 is below its 26-week average of 32 according to Track Data, suggesting decreasing price movement.

Siemens AG (SI) said it is confident of reaching its full-year targets after profits in Q1 advanced on demand for health-care, industrial and energy equipment. Overall option implied volatility of 30 is below its 26-week average of 33 according to Track Data, suggesting decreasing price movement.

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

United States Oil Fund (USO) closed down $1.13 to $34.74. WTI Crude futures were recently down 2.97% to $77.87 according to Bloomberg. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. USO August put option implied volatility is at 39, September is at 33, October is at 34, January is at 36; above its 26-week average of 32 according to Track Data, suggesting larger price movement.

CBOE EuroCurrency Volatility Index (EVZ) was up $1.46 to $13.34.

CBOE Volatility Index (VIX) was up 2.87 to 25.19. S&P 500 down 2.79%.

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

United States Oil Fund (USO) is recently up 17 cents to $40.12 in pre-open trading. WTI Crude futures are recently up 0.58% to $82.85 according to Bloomberg. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. April put option implied volatility is at 28, May is at 31, July is at 33; verses its 26-week average of 37, according to Track Data, suggesting decreasing price movement.

Qualcomm (QCOM) closed at $42.13. QCOM has been recently subject to wide share price movement. QCOM overall option implied volatility of 27 is near its 26-week average of 29 according to Track Data, suggesting non-directional price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

United States Oil Fund (NYSE: USO) closed $36.68. WTI Crude futures are recently down .45% to $71.40 according to Bloomberg. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. USO over all option implied volatility is at 44; verses its 26-week average of 46, according to Track Data, suggesting non-directional price movement.

Harley-Davidson (NYSE: HOG) closed at $23.28. HOG is scheduled to report Q3 EPS on October 15. HOG October option implied volatility is at 76, November is at 55; verses its 26-week average of 60, according to Track Data, suggesting decreasing price movement after EPS.

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

Chevron (NYSE: CVX) closed at $70.48. CVX interim Q1 2009 earnings are scheduled to be released on April 9. WTI Crude futures are recently up .93% to $53 according to Bloomberg. CVX April and May option implied volatility of 41 is below its 26-week average of 52, according to Track Data, suggesting decreasing price movement.

United States Oil Fund (NYSE: USO) is recently down 12 cents to $30.81 in pre-open trading. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. USO April option implied volatility is at 69; May is at 62; near its 26-week average of 67, according to Track Data, suggesting non-directional price movement.

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

United States Oil Fund (NYSE: USO) is recently down $1.07 to $25.98 in pre-open trading. WTI Crude futures are recently down 5.16% to $42.45. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. USO March option implied volatility of 72 is above its 26-week average of 68, according to Track Data, suggesting larger price movement.

Financial Bear 3X (NYSE: FAX) 3X is recently up $8.07 to $70 in pre-open trading. FAZ March 70 straddle is priced at $28.90, April 70 straddle is priced at $39. FAZ over all option implied volatility is at 192 according to Track Data, suggesting extreme price movement.

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

United States Oil Fund (NYSE: USO) is recently down 60 cents to $23.68 in pre-open trading. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. USO March option implied volatility of 78 is above its 26-week average of 67, according to Track Data, suggesting larger price movement.

UltraShort Financials ProShares (NYSE: SKF) is recently up $10.48 to $196.60 in pre-open trading. 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 March option implied volatility of 155 is above its 26-week average of 123, according to Track Data, suggesting larger price movement.

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

What is going to happen with crude? Two sessions ago, black gold dropped 7% to trade in the $35 region. Yesterday, crude hovered near break even. Today, we have the weekly crude inventory report -- which should have a modicum of impact on crude's price.

What I find interesting is the fact that we haven't seen the relief at the pump yet. I know that the Cushing, OK reserve is fully stocked and some of the crude sent to the stations is still from a time when black gold was worth more. But we have to be getting close to the $35-per-barrel stuff, right? I know right now I pay roughly $2 per gallon -- and I know, I should quit whining, but still....

At this juncture, investors/readers thinking about speculating a little in oil via shares in the United States Oil Fund (AMEX: USO) or via an integrated oil company should think again.

With the U.S. stock market meandering and the nation's economic doldrums continuing, the urge can build in investors, particularly those less-experienced, to try something daring.

However, the oil market is currently in a tug-of-war between the geopolitical concern-oriented bulls and the global economy slowdown-oriented bears.

In other words, the oil market is about as balanced -- or as divided -- as it has been in about two years, so says energy trader Jim Dietz. Oil closed Friday up $1.02 to $125.10 per barrel. Oil is down about 15% from its all-time high of $147.27 registered on July 11, 2008, but is still up about 100% over the past year and about 400% since 2000.