Occidental Petroleum (OXY) closed up $3.19 to $75.42. WTI Crude futures closed up 2.73% to $75.36 according to Bloomberg. September put option implied volatility is at 29, November is at 33; versus its 26-week average of 32 according to Track Data, suggesting nondirectional price movement.

3Par Inc. (PAR) closed up $6.43 to $32.46. Hewlett-Packard Co. (HPQ) announced a revised proposal to acquire 3PAR for $30 per share in cash. PAR options were active on 190K contracts according to Track Data, suggesting larger price movement. Paul Foster

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.

Yamana Gold (NYSE: AUY) closed at $11.35. Gold is recently up .62% to $1046.10 according to Bloomberg. AUY is hosting an analyst meeting today. AUY October option implied volatility is at 59; January is at 61; verses its 26-week average of 61, according to Track Data, suggesting non-directional price movement.

UltraShort Oil & Gas ProShares (NYSE: DUG) closed at $14.25. DUG corresponds to twice the inverse of the performance of the Dow Jones Oil & Gas Index. WTI Crude Futures are recently up .38% to $71.15 according to Bloomberg. DUG October option implied volatility is at 51; November is at 59; below its 26-week average of 65, according to Track Data, suggesting decreasing price movement.

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

Affiliated Computer (NYSE: ACS) will be acquired by Xerox (NYSE: XRX) for $63.11 per share in cash and XRX stock. ACS shareholders will receive $18.60 per share in cash plus 4.935 XRX shares for each ACS share they own. ACS closed at $47.25. ACS October option implied volatility is at 27, November is at 28; below its 26-week average of 31 according to Track Data, suggesting decreasing price movement.

US Airways (NYSE: LCC) closed of $4.96. WTI Crude futures are recently down .48% to $65.70 according to Bloomberg. LCC October option implied volatility is at 93, December is at 107; below its 26-week average of 120 according to Track Data, suggesting decreasing price movement.

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.

BP (NYSE: BP) is expected to report EPS on February 5. WTI Crude futures are down 1.84% to $87.57 according to Bloomberg.

BP, a holding company, operates through three business segments: Exploration and Production, Refining and Marketing and Gas & Power and Renewable. BP reported 2006 total revenue of $274 billion.

BP overall option implied volatility of 33 is above its 26-week average of 26 according to Track Data, suggesting larger price risks.

Amex Energy Select (XLE), volatility of 41 is above 26-week average of 29.

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

Hess (NYSE: HES) closed at a record high of $104.40 Wednesday. WTI Crude futures are down 0.30% to $95.68 according to Bloomberg. HES overall option implied volatility of 46 is above its 26-week average of 38 according to Track Data, suggesting larger price risks.

Occidental Petroleum (NYSE: OXY) closed at record high of $78.06 Wednesday. OXY operates in two segments: oil-gas and chemicals. OXY has a market cap of $64 billion with long-term debt of $1.7 billion. OXY overall option implied volatility of 34 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

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

Pacific Ethanol (NASDAQ: PEIX), the largest West Coast-based marketer and producer of ethanol, closed at $4.64 on Tuesday. Goldman Sachs said on November 27: "We are adding PEIX to the Americas Sell List, as we believe that ethanol equities will continue to lag the energy sector and broader stock market." PEIX overall option implied volatility of 75 is above its 26-week average of 50 according to Track Data, suggesting larger price risks.

VeraSun Energy (NYSE: VSE) operates as an ethanol producer. VSE closed at $10.14 on Tuesday. Friedman Billings says: "Sources tell us House staff hope to complete draft energy legislation today with hopes of a Floor vote next week. Proposed RFS increases exceed existing expectations for near-year corn ethanol legislative demand increases." VSE overall option implied volatility of 64 is above its 26-week average of 53 according to Track Data, suggesting larger price fluctuations.

Aventine Renewable Energy (NYSE: AVR) a producer, marketer and end-to-end distributor of ethanol. Corn futures are down 0.56% to 398.50 and WTI Crude futures are at 94.48 according to Bloomberg. AVR overall option implied volatility of 75 is above its 26-week average of 57 according to Track Data, suggesting larger price risks.

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

China Petroleum & Chemical (NYSE: SNP) volatility up into 8/27 EPS & Outlook. SNP, an energy and chemical company based in the People's Republic of China, is expected to report EPS on August 27. SNP is recently up $4.12 to $107. SBSH said on August 22: "We value SNP ADRs at $104 based on a sum-of-the-parts analysis." WTI Crude Futures are up 1.61% to $70.96 according to Bloomberg. SNP September option implied volatility of 42 is above its 26-week average of 33 according to Track Data, suggesting larger price risk.

CNOOC Ltd (NYSE: CEO) put volatility Elevated into EPS & Outlook. CEO as of 12/31/06, CEO owned net proved reserves of approximately 2.53 billion barrels of oil. CEO is expected to report EPS on August 29. CEO is recently up $2.28 to $117.28. WTI Crude Futures are up 1.61% to $70.96 according to Bloomberg. CEO September call option implied volatility is at 32, puts are at 46; above its 26-week average of 30 according to Track Data, suggesting larger risk.

PetroChina (NYSE: PTR) put volatility at 41 after reporting net profit increase. PTR, a People's Republic of China run petroleum and natural gas company, is recently up $3.71 to $144.35. PTR reported that its net profit for the first half of 2007 was up 1.4% from the first half of 2006. WTI Crude Futures are up 1.61% to $70.96 according to Bloomberg. PTR call option implied volatility is at 25, puts are at 41. PTR 26-week average option implied volatility is 29 according to Track Data. PTR puts are expensive because PTR is not easy to borrow.

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

Copano Energy (NASDAQ: CPNO) - Volatility Elevated into EPS & lower energy prices. CPNO is an energy company with natural gas gathering and intrastate transmission pipeline assets and natural gas processing facilities Oklahoma & Texas Gulf coast region. WTI Crude futures are down 3.56% to $72.79 according to Track Data. CPNO will announce EPS on 8/8. CPNO August option implied volatility of 41 is above its 12-week average of 20 according to Track Data, suggesting larger risk.

Enterprise Products (NYSE: EPD) - Implied volatility of 40 above 26-week average of 17. EPD transports natural gas, NGL's and crude oil through more than 35,000 miles of onshore and offshore pipelines. EPD September put implied volatility of 40 is above its 26-week average of 17 according to Track Data, suggesting larger risk.

Kinder Morgan Energy Partners (NYSE: KMP) - September volatility Elevated. KMP owns or operates 26,000 miles of pipelines and approximately 150 terminals. KMP September option implied volatility of 50 is above its 26-week average of 14 according to Track Data, suggesting larger risk.

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