Morgan Stanley (NYSE: MS) closed at $15.22 on Friday. MS is expected to report Q4 EPS in mid December. MS December 15 straddle is priced at $3.30. MS January option implied volatility of 126 is above its 26-week average of 98 according to Track Data, suggesting large price movement.

Goldman Sachs (NYSE: GS) closed at $70.72 on Friday. GS is expected to report Q4 EPS on December 16. GS December 70 straddle is priced at $13.30. GS January option implied volatility of 103 is above its 26-week average of 74 according to Track Data, suggesting large price movement.

Mitsubishi UFJ Financial Group (NYSE: MTU) said it will raise about $4.3 billion by selling common shares to boost capital. MTU overall option implied volatility of 91 is above its 26-week average of 62 according to Track Data, suggesting larger price movement.

Financial Select Sector-XLF overall volatility at 83; 26-week average is 53

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

TheStreet.com's Jim Cramer says this trade has worked all week, but it's a shaky play on the fundamentals.

It's a stubborn market. We sit here and marvel that Barclays (NYSE: BCS) (Cramer's Take) or Mitsubishi (NYSE: MTU) (Cramer's Take) need to raise money when three weeks ago we thought they were going to inherit the earth because they didn't lose money. We liked them because we stubbornly believed they were better.

We thought that Prudential (NYSE: PRU) (Cramer's Take) was The Rock; now it is The Rock like the guy who makes a lot of movies -- not all of them good. Lincoln National (NYSE: LNC) (Cramer's Take) was perceived to be much higher quality than MetLife (NYSE: MET) (Cramer's Take), but that's wrong. The idea that the Hartford (NYSE: HIG) (Cramer's Take) would be in trouble, as it has always been not in trouble, is amazing to us.

We stubbornly cling to the ones that we thought were good until we hear that they need a bailout. Then we turn on them like they were never good or like they are going to go bankrupt.

U.S. stock futures turned higher Monday morning despite a dip in the dollar and oil prices rising somewhat. Investors may focus on the financial sector again following some news while they await housing data later today. More inflation data is due Tuesday.

UnionBanCal (NYSE: UB) accepted a sweetened bid from Mitsubishi UFJ Financial Group (NYSE: MTU). After rejecting two previous offers, UB accepted MTU's offer to pay $3.5 billion, or $73.50 a share, for the remaining 35% portion of the California bank that it doesn't already own. UB shares are trading 11.85% higher in premarket action.

Staying in financials, Lehman Brothers (NYSE: LEH) may see some action after The Wall Street Journal said some analysts believe it could lose $1.8 billion during the quarter. LEH shares are 2% lower in premarket trading. Meanwhile, Barron's said a government recapitalization of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) is almost inevitable, wiping out investors -- and management. Shares are 2% and 6% lower respectively in premarket trading.

Lowe's (NYSE: LOW), the home improvement retail chain, reported results this morning. Lowe's profit fell for the fourth straight quarter as the biggest U.S. housing slump since the Great Depression slowed spending. Net income declined 7.9% to $938 million, or 64 cents a share, exceeding analysts' estimates by 8 cents. Sales rose to $14.5 billion from $14.2 billion. Lowe's raised guidance, but stayed within estimates.

"Asia is still the place to be if you are looking for growth," says John Christy in The Forbes International Investment Report. Here, he looks at some favored Asian banking stocks -- in Japan, India and Korea.

"While China tends to get all of the headlines, the rest of Asia is on a solid economic growth trajectory for 2008. According to the latest Economist data, Hong Kong, South Korea, Singapore and Malaysia are all expected to deliver 5%+ gross domestic product growth next year. Taiwan isn't far behind at 4.6%.

"Of course, these numbers pale in comparison to forecasts of 10% for China and nearly 8% for India, but they're nothing to be ashamed of. With forecasts for Europe, the U.S. and Japan all hovering around 2%, Asia is still the place to be if you're looking for growth.

"Stock prices reflect much of this, but there are still plenty of pockets of opportunity. Asian financials are a good example. These names have been somewhat unfairly dragged down by the global credit mess and subprime fallout.

"As a result, strong banks like Shinhan Financial (NYSE: SHG) and Woori (NYSE: WF) in Korea, and Japan's Mitsubishi UFJ (NYSE: MTU) are all trading at attractive valuations.

The land of the rising sun may be the investor's best bet as a land of rising stock prices, according to a trio of leading advisors.

Japan's current economic expansion is now over 60 months and running, making it the longest expansion in that country in the postwar period according to global advisor expert Carl Delfeld. He says, "Investors should not underestimate Japan's potential - it may be the best growth story in Asia."

The editor of Chartwell Advisor explains, Japanese stocks took a breather in 2006 -- rising 5.5% -- after gaining 35% in 2003, 15% in 2004 and 25% in 2005.

Despite these gains, he notes that the Japanese market is still 60% below its 1989 peak. Is it time to catch up? He says, "Investors should not underestimate Japan's potential - it may be the best growth story in Asia."

Indeed, while many see Xhina as the more exciting growth play, he says, "Japanese companies have long tentacles in emerging Asia, with especially strong networks in Southeast Asia. Plus, in Japan, there is a mountain of cash sitting on the sidelines. Even if just a small amount moves into equities, it will ignite some handsome returns."

Among individual stocks, he likes Kyocera (NYSE:KYO), a large multinational with products and markets that span electronics, fiber optics, and wireless. For broad exposure to the Japanese market, he recommends the iShares Japan ETF (ASE:EWJ), which tracks the MSCI Japan index, which is made up of 350 companies.