Volatility Index S&P 500 Options were up today .37 to 10.79.

Tyco's (NYSE: TYC) option implied volatility was flat as investors digested the Tyco SEC spin-off filings. Tyco is expected to break itself up into three publicly traded company's at the end of April of 2007 (Electronics $12.7 billion in revenue, Healthcare $10 billion in revenue & Fire & Security Engineered products $18 billion in revenue). Prudential said "Investors buying Tyco shares based on sum-of-the-parts valuation may want to reconsider given that prevails expected highest multiple businesses likely to incur highest tax rates (30%+) in year 1 & 2." Tyco's overall option implied volatility of 21 is near its 26-week average, according to Track Data, suggesting non-directional price risks.

Option volume leaders today were: Yahoo (NASDAQ: YHOO), Apple Computer (NASDAQ: AAPL), Texas Instruments (NYSE: TXN), Amgen (NASDAQ: AMGN), and Google (NASDAQ: GOOG).

Note: The Daily Option Update is provided by Options Specialist Paul Foster of Theflyonthewall.com.

The Wall Street Journal has a great career column today about the brouhaha over Wal-Mart CEO Lee Scott's plan to take off the entire month of May.

The gist of the column is that the guy deserves a break after 27 years on the job and that more CEOs should take the occasional lengthy vacation to refresh and refuel. You can't argue with the benefits of a vacation for renewed vigor on the job.

Still, I can't help but wonder -- even if though the company adamantly denies it -- if there isn't more going on behind the scenes. Columnist Carol Hymowitz notes that Wall Street is currently speculating that maybe the big break is just a preamble to a longer one -- retirement or resignation.