It was indeed refreshing to read that JP Morgan Chase & Co (NYSE JPM) was able to reap $5 billion from over the counter derivatives markets trading in 2008, during the worst year in Wall Street history.

Some profits from interest rate swaps, municipal bond and foreign exchange have been kept confidential but let's hope we can assume the same rosy profits in these areas also.

Office Depot, Inc. (NYSE: ODP) had 1,186 retail stores in North America and another 369 stores owned, licensed or franchised in other parts of the world as of June 30th.

Smith Barney says "shares of ODP appear undervalued but few data points loom in the next quarter or two to drive them higher." ODP is expected to report earnings per share (EPS) in late October. ODP January option implied volatility of 43 is above its 26-week average of 33 according to Track Data, suggesting larger price fluctuations.

Baker Hughes Incorporated (NYSE: BHI) is engaged in the oilfield service sector. BHI recently up $1.01 to $92.12.

BHI has a market cap of $29.5 billion with long term debt of $1 billion. BHI is expected to report EPS on October 26th. BHI reported on October 8th its September rig count rose to 1,032 from 1,009 in August 2007. BHI November 95 calls have traded 59 times on contract volume 2,878 contracts, above its open interest of 834 contracts. BHI November 100 calls have traded 170 times on contract volume 18,641 contracts above its open interest of 480 contracts. BHI November option implied volatility of 34 is near its 26-week average of 30 according to Track Data, suggesting slightly larger risk.

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

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

Volatility Index S&P 500 Options-VIX down .35 to 11.10.

AtheroGenics Inc. (NASDAQ:AGIX) derivatives high risk, option volume up traders prepare for data. AtheroGenics focuses on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases. AtheroGenics is expected to announce results for top line data from the ARISE Phase 3 trial on AGI-1067 (coronary heart disease treatment.) AGIX said on 1/8/07 the data "will likely be available no sooner than late first quarter." AtheroGenics call option volume of 27,881 contracts compares to put volume of 14,119 contracts. AtheroGenics April 12.5 straddle is at $11 dollars, according to Track Data, suggesting large risks.

Option volume leaders today were: Motorola Inc. (NYSE:MOT), Apple, Inc.(NASDAQ:AAPL), CountryWide Financial Corp. (NYSE:CFC), Caterpillar Inc. (NYSE:CAT) and U.S. Steel Corp. (NYSE:X).