Time Warner (NYSE: TWX) is recently trading at $23.57 in pre-open trading, above its close of $23. TWX announced plans to separate AOL from TWX in a tax free transaction. TWX June option implied volatility is at 48; July is at 46; below its 26-week average of 56, according to Track Data, suggesting decreasing price movement.

Volatility Index S&P 500 Options (CBOE: VIX) at 32.36; 10-day moving average is 31.31.

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

Volatility Index S&P 500 Options (CBOE: VIX) is recently down 93 cents to 29.33. The VIX was last below 30 on September 19, 2008.

The VIX measures the market's expectation of future volatility implied by S&P 500 stock index options prices. In other words, VIX uses options pricing as a way to measure perceived market risk and uncertainty.

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

Rohm and Haas (NYSE-ROH) is recently trading at $48.66 in pre-open trading, below its close of $63.56. ROH, the acquisition target of Dow Chemical (NYSE-DOW), lost access to $9 billion of Kuwait financing. January option implied volatility of 146 is above its 26-week average of 29, according to Track Data, suggesting larger price movement.

DOW is recently trading at $18.00 in pre-open trading, below its close of $18.92. Smith Barney says, "DOW should be looking to protect its shareholders by cutting the ROH deal at a lower price or walking away from the deal by paying a break up fee." DOW January option implied volatility of 59 is above its 26-week average of 49, according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 43.38; 10-day moving average is 48.26.

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

Microsoft (NASDAQ: MSFT) closed at $25.01. MSFT announced on September 22 its board of directors approved a new share repurchase program authorizing up to additional $40 billion in share repurchases with an expiration of September 30, 2013. MSFT is scheduled to report Q1 EPS on October 23. MSFT October option implied volatility is at 55, November is at 51; above its 26-week average of 32 according to Track Data, suggesting larger price movement.

BHP Billiton (NASDAQ: BHP), the world's largest diversified resources company, closed at $50.50. BHP October option implied volatility of 97 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 46.72; 10-day moving average is 35.07.

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

ConocoPhillips (NYSE: COP) closed at $92.17 Friday, shares near record on $137 oil.

WTI crude oil futures are recently down 1.08% to $137.04 according to Bloomberg.

COP overall option implied volatility of 34 is above its 26-week average of 32 according to Track Data, suggesting slightly larger movement.

Volatility Index S&P 500 Options-VIX at 23.55; 10-day moving average is 19.72

Option Update is provided

ConocoPhillips (NYSE: COP) is recently trading up 85 cents to $93.17.

WTI crude oil futures are recently up 0.18% to $133.41 according to Bloomberg.

COP overall option implied volatility of 31 is near its 26-week average according to Track Data, suggesting non-directional movement.

Volatility Index S&P 500 Options-VIX up 27c to 18.26.

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

Petrobras (NYSE: PBR), a Brazil based oil and gas company, closed at $126.18 Wednesday.

PBR is expected to report Q1 EPS on May 12.

Crude oil futures are recently at $117.57 according to Bloomberg.

PBR May option implied volatility of 55 is above its 26-week average of 51 according to Track Data, suggesting larger price risk.

Volatility Index S&P 500 Options-VIX at 20.26; 10-day moving average is 21.46

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

Royal Dutch Shell (NYSE: RDS.A) closed at $76.39. Crude futures are up 0.45% to $117.21, according to Bloomberg. RDS over all option implied volatility of 23 is near its 26-week average of 25 according to Track Data, suggesting non-directional fluctuations.

The Volatility Index for S&P 500 Options (VIX) is at 20.12; the 10-day moving average is 22.06.

Financial Select Sector (XLF) overall volatility is at 33; the 26-week average is 35.

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

General Electric (NYSE-GE) is recently up 55 cents to $37. GE is scheduled to report Q1 EPS on April 11. GE call option volume of 21,230 contracts compares to put volume of 33,791 contracts. GE April 37 straddle is priced at $1.55, May 37 straddle is at $2.55 according to Track Data.

Volatility Index S&P 500 Options-VIX down 1.00 to 21.80.
VIX below 200 moving average of 23.05.

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