IBM (IBM)) is expected to report Q1 EPS the market close on April 19. May and July put option implied volatility is at 19, October is at 21; below its 26-week average of 22 according to Track Data, suggesting decreasing price movement.

eBay (EBAY) closed at $27.04. EBAY is expected to report Q1 EPS on April 21. EBAY May put volatility is at 34, July is at 31, October is at 30; verses its 26-week average of 34, according to Track Data, suggesting non-directional price movement.

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

Diamonds Fund (NYSE: DIA) closed at $100.86.39 DIA is an ETF whose objective is to correspond to the price and yield performance of the Dow Jones Industrial Average-DJIA. DIA November call option implied volatility is at 15, puts are at 20, December call volatility is at 16, puts at 22; below its 26-week average of 23, according to Track Data, suggesting decreasing price movement.

Freeport McMoRan (NYSE: FCX) closed at $78.63. FCX is expected to report Q3 EPS on October 21. FCX November call option implied volatility is at 42, puts at 45, December calls are at 42, puts are at 46; below its 26-week of average of 60, according to Track Data, suggesting decreasing price movement.

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

Berkshire Hathaway B-shares (NYSE: BRK.B - option symbol BVQ) closed at $2,829. The Chicago Board Option Exchange listed options on BRK/B with initial strike prices of 2,800, 2,900, 3,000 and 3,100. BRK/B historic volatility is at 21 according to Bloomberg.

CBOE Volatility Index S&P 500 Options-(VIX) at 30.03; 10-day moving average is 29.74.

June front-month equity options expire, today, June 19.

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

BJ Services Company (NYSE: BJS) was recently up 30 cents to $14.65. BJS provides pressure pumping and oilfield services for the petroleum industry. Crude oil futures were recently up .16% to $61.15, according to Bloomberg. BJS call option volume of 23,567 contracts compares to put volume of 2,123 contracts. BJS June option implied volatility was at 67, July at 66; above its one month average of 58 and near its 26-week average of 66, according to Track Data, indicating less near term price clarity.

Volatility Index S&P 500 Options-VIX was up to 31.75; the 10-day moving average was 31.39.

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

Sears Holding (NASDAQ: SHLD) is recently trading at $62.10 in pre-open trading, above its close of $50.19. SHLD secured a new $2.4 billion line of credit to help finance purchases through 2012. SHLD reported Q1 of $10.1 billion, versus $11.1 billion in the same quarter a year ago. SHLD June call option volatility is at 64, puts is are at 77 verses its 26-week average of 64, according to Track Data. SHLD puts are priced higher than calls because SHLD is difficult to borrow.

Big Lots (NYSE: BIG) closed at $24.14. BIG is scheduled to report Q1 EPS on May 28. BIG June option implied volatility is at 58; October is at 56; below its 26-week average of 72, according to Track Data, suggesting decreasing price movement.

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

Electronic Arts is recently up 34c to $21.43. ERTS is scheduled to report Q4 EPS after the market close today. ERTS May option implied volatility is at 86, June is at 63; verses its 26-week average of 68, according to Track Data, suggesting non-directional price movement after EPS.

Active equity option families at mid-day of trading of trading according to Track Data are: Citigroup (NYSE-C), Bank of America (NYSE-BAC) and General Electric (NYSE-GE).

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

China Telecom (NYSE: CHA) is recently up $2.51 to $35.85. Chinese Premier Wen Jiabao will announce a stimulus package during his annual address to the nation's legislature on Thursday. CHA is a provider of wire line telecommunication services in China. CHA March option implied volatility is at 67; June is at 62; near its 26-week average according to Track Data, suggesting non-directional price movement.

China Mobile (NYSE: CHL) is recently up $3.17 to $44.66. CHL over all option implied volatility of 58 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

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

Washington Mutual, Inc. (NYSE: WM) announced the capital offering of convertible stock with aggregate proceeds of approximately $2.5 billion and the reduction of the quarterly dividend rate to 15 cents from its most recent dividend rate of 56 cents per share:

WM is trading at $18.99 in after market trading, below its close of $19.88. WM December option implied volatility is at 71, January is at 84, above its 26-week average of 43 according to Track Data, suggesting larger risk.

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

Hershey (NYSE: HSY) is recently up $0.51 to $43.01 on renewed & unconfirmed takeover chatter. HSY call option volume of 10,491 contracts compares to put volume of 570 contracts. HSY November option implied volatility of 45 is above its 26-week average of 24 according to Track Data, suggesting traders buying calls for an upside move.

Dean Foods (NYSE: DF) is recently trading up $0.45 to $27.41 on renewed takeover chatter. DF, a leading food & beverage company, reduced 3Q & full-year earnings expectations on 10/2. DF is expected to announce full 3Q EPS on 11/8. DF November 30 calls have traded 108 times on transaction volume of 3,888 contracts above its open interest of 874 contracts. DF November option implied volatility is at 57 according to Track Data, suggesting larger price risk.

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

Beazer Homes USA Inc. (NYSE: BZH) -- put volume volatility Spikes on Panic sell off. BZH, one of the country's ten largest single-family home builders, is recently down $1.77 to $12.19. BZH has been facing a federal investigation into its mortgage lending practices. The Wall Street Journal reported on March 21, 2007 that BZH fired its chief accounting officer for attempting to destroy company documents. BZH call option volume of 1,372 contracts compares to put volume of 9,932 contracts. BZH August call option implied volatility is at 130; puts at 139. BZH September option implied volatility is at 120 above its 26-week average of 44 according to Track Data, suggesting larger risks.

The Volatility Index S&P 500 Options (VIX) is up 1.12 to 24.63.

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

Wendy's International Inc. (NYSE: WEN) overall implied volatility increases as WEN reviews strategic options.

• WEN is recently up $2.47 to $40.70.
  
• WEN announced "formation of a special committee of independent directors to review strategic options to enhance shareholder value on 4/26/07."
  
• WEN May option implied volatility is at 40 and June is at 39; above its 26-week average of 23 according to Track Data, suggesting larger risk.

IDM Pharma Inc. (NASDAQ: IDMI) options active and prices valued for Risk into 5/9 FDA outcome.

• IDMI is recently down $2.82 to $5.98.
  
• IDMI will hold a conference call on 5/9 to discuss the outcome of the U.S. Food and Drug Administration Oncologic Drugs Advisory Committee meeting for Junovan (treatment for non-metastatic respectable osteosarcoma).
  
• IDMI call option volume of 2,689 contracts compares to put volume of 2,364 contracts. IDMI May 5 straddle is priced at $3.60 according to Track Data, suggesting large price risks.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Elan Corp. (NYSE: ELN), Citigroup Inc. (NYSE: C) and Alcoa Inc. (NYSE: AA).

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