General Motors Corporation (NYSE GM) was recently up 1 cent to $1.44. The WSJ was reporting that the government would provide 'massive additional financial assistance' to GM. GM June 1 calls have traded 119,000 contracts above its open interest of 103,787 contracts. GM at the money June 1 straddle was priced at 89 cents, September 1 straddle was at $1.11 according to Track Data, suggesting large price movement.

Volatility Index S&P 500 Options: VIX was down 1.87 to 30.76.

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

BJ Services Company (NYSE: BJS) was recently up 30 cents to $14.65. BJS provides pressure pumping and oilfield services for the petroleum industry. Crude oil futures were recently up .16% to $61.15, according to Bloomberg. BJS call option volume of 23,567 contracts compares to put volume of 2,123 contracts. BJS June option implied volatility was at 67, July at 66; above its one month average of 58 and near its 26-week average of 66, according to Track Data, indicating less near term price clarity.

Volatility Index S&P 500 Options-VIX was up to 31.75; the 10-day moving average was 31.39.

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

ProShares UltraShrt Lehman 7-10 Yr ETF (NYSE: PST) closed at $57.16. The U.S. Treasury is in the midst of raising $300 billion from credit investors to fund the economic stimulus plan. PST overall option implied volatility of 24 is near its three-week average according to Track Data, suggesting non-directional price movement.

iShares Barclays Capital Long Term Tr ETF (NYSE: TIP) closed at $100.50. TIP overall option implied volatility of 12 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Volatility Index S&P 500 Options - VIX at 43.63; 10-day moving average is 43.25.

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

Only two and half of the next six days will be trading days. The time value of an option's premium, which the option holder has "purchased" when paying for the option, decreases with the passage of time. With the market closed in three and half of the next six days, long option premium positions have less time to move to a profitable outcome.

Volatility Index S&P 500 Options - VIX at 44.56; 10-day moving average is 52.04.

Volatility Index NASDAQ 100 - VXN at 41.90; 10-day moving average is 49.87.

NASDAQ 100 - QQQQ overall implied volatility at 44; 26-week average is 46 according to Track Data.

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

Apple (NASDAQ: AAPL) is recently down $3.53 to $91.90 in pre-open trading. Steve Jobs has pulled out of his annual address at Macworld on January 6. Oppenheimer says: "Maybe he's not feeling well, or maybe he just has nothing new to say." AAPL January option implied volatility of 69 is above its 26-week average of 56 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options - VIX at 52.36; 10-day moving average is 57.66 according to Track Data.

NASDAQ 100 - QQQQ overall implied volatility at 51; 26-week average is 46.

Semiconductor Holders Trust - SMH overall volatility at 59; 26-week average is 47.

Russell 2000 - IWM overall implied volatility at 67; 26-week average is 47.

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

Volatility Index S&P 500 Options-VIX at 54.57; 10-day moving average is 59.89

ConAgra (NYSE: CAG) closed at $14.48 Friday. CAG is scheduled to report Q2 EPS on December 17. CAG January option implied volatility of 47 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Nike-(NYSE: NKE) closed at $49.37 Friday. NKE is expected to report Q2 on December 17. Thomas Weisel has a $74 price target on NKE. NKE January option implied volatility of 64 is above its 26-week average of 49 according to Track Data, suggesting larger price fluctuations.

General Mills (NYSE: GIS) is scheduled to report Q2 EPS on December 17. GIS January option implied volatility of 42 is above its 26-week average of 35 according to Track Data, suggesting larger price movement.

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

FedEx (NYSE: FDX) is recently trading at $67.33 in pre-open trading, below its close of $74.43. FDX lowered its fiscal year 2009 outlook. Robert Baird has a $65 price target on FDX. FDX December option implied volatility is at 75, January is at 62; above its 26-week average of 49 according to Track Data, suggesting larger movement.

United Parcel Service (NYSE: UPS) closed at $58.62. FDX lowered its fiscal year 2009 outlook. Crude oil futures are recently down 0.55% to $43.47 according to Bloomberg. UPS December option implied volatility is at 49, January is at 47; above its 26-week average of 39 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 58.49; 10-day moving average is 61.06

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

Volatility Index S&P 500 Options-VIX at 56.09; 10-day moving average is 61.55.

NASDAQ 100-QQQQ overall implied volatility at 52; 26-week average is 37.

Financial Select Sector-XLF overall volatility at 76; 26-week average is 46.

Best Buy (NYSE: BBY) closed at $25.59. Circuit City (NYSE: CC) filed for Chapter 11. BBY December option implied volatility of 86 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

Volatility Index S&P 500 Options - VIX at 79.12; 10-day moving average is 63.99.

Volatility Index NASDAQ 100 - VXN at 78.81; 10-day moving average is 67.89.

NASDAQ 100 - QQQQ overall implied volatility at 52; 26-week average is 34.

Russell 2000 - IWM overall implied volatility at 62; 26-week average is 34.

Financial Select Sector - XLF overall volatility at 78; 26-week average is 44.

Comcast (NASDAQ: CMCSA) is scheduled to report Q3 EPS on October 29. CMCSA November option implied volatility of 111 is above its 26-week average of 39 according to Track Data, suggesting larger price movement.

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

Globex S&P futures trading limit down 60.00 below previous day's SPX cash close.

Stocks tumbled around the world and U.S. index futures fell on increasing concern the weakening global economy will decrease earnings.

Nikkei 225 down 9.60%, DAX 30 down 8.96%. WTI Crude oil $64.50. Copper down 2.50%. Gold $690.

Volatility Index S&P 500 Options-VIX at 67.80; 10-day moving average is 63.07.

Volatility Index NASDAQ 100-VXN at 69.83; 10-day moving average is 67.16.

NASDAQ 100-QQQQ overall implied volatility at 53; 26-week average is 33.

Semiconductor Holders Trust-SMH overall volatility at 49; 26-week average is 33.

Russell 2000-IWM overall implied volatility at 51; 26-week average is 33.

Financial Select Sector-XLF overall volatility at 70; 26-week average is 44.

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

UBS AG (NYSE: UBS), Switzerland's biggest bank, was forced into a $59.2 billion government bailout. UBS closed at $16.65. UBS over all option implied volatility of 96 was above its 26-week average of 59 according to Track Data, suggesting larger price movement.

Credit Suisse (NYSE: CS) closed at $37.59. CS will tap about $8.8 billion in private fund to boost its capital and pursue growth opportunities. CS over all option implied volatility of 92 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options: VIX at 69.25; 10-day moving average is 56.69.

Volatility Index NASDAQ 100: VXN at 72.93; 10-day moving average is 61.36.

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

Wells Fargo (NYSE: WFC) and Wachovia (NYSE: WB) said they have signed a definite agreement for the merger of the two companies including all of WB's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corp (FDIC). WFC October option implied volatility of 97 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

WB is recently trading at $6.40 in pre-open trading, above its close of $3.81. WB overall option implied volatility of 145 is above its 26-week average of 72 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 45.25; 10-day moving average is 37.55.

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

CBS (NYSE: CBS) closed at $14.58. CBS is expected to report Q3 EPS in late October. CBS Corp will host an investor conference to discuss the company's interactive business on October 7. CBS over all option implied volatility of 44 is above its 26-week average of 36 according to Track Data, suggesting larger price movement.

Viacom (NYSE: VIA) closed at $24.86. VIA overall option implied volatility of 49 is above its 26-week average of 35 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 39.38; 10-day moving average is 35.98.

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

Jackson Hewitt (NYSE: JTX) is recently down 10 cents to $17.07. JTX is scheduled to report Q1 EPS on September 4. Soleil Group says: "We believe there are too many uncertainties to be aggressive one way or the other; we are maintaining our Hold rating." JTX September option implied volatility of 50 is below its 26-week average of 55 according to Track Data, suggesting decreasing price movement.

H&R Block (NYSE: HRB) is recently up 24 cents to $25.23. Soleil Group has a Buy rating and price target of $28 on HRB. HRB September option implied volatility of 40 is near its 26-week average, suggesting non-directional price movement.

Volatility Index S&P 500 Options-VIX down 27c to 19.48; 10-day moving average is 20.24

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

Financial Select Sector-XLF is recently down 32 cents to $17.40. XLF call option volume of 19,435 contracts compares to put volume of 38,221 contracts. XLF 17.5 straddle is priced at $1.46. XLF August option implied volatility of 76 is above its 26-week average of 36 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX up 1.01 to 29.49

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