AIG (AIG) closed up on an interview with The Deal magazine and AIG Chairman Robert Miller, who said the insurer was beginning to think about acquiring insurance operations instead of selling them. December 55 and January 66 calls are active on total call option volume of 168K contracts (90K puts). January call option implied volatility is at 43, February is at 41, May is at 38, versus its 26-week average of 45, according to Track Data, suggesting decreasing price movement.

Take-Two Interactive Software (TTWO) is scheduled to report Q4 EPS on December 16. December 12 straddle is priced at $1.00, January is at $1.60, according to Track Data, suggesting larger near-term price movement.

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

Alcoa (AA) closed at $10.34. AA is expected to report Q2 EPS on July 11. Overall option implied volatility of 45 is near its 26-week average according to Track Data, suggesting nondirectional movement.

Siemens (SI) closed at $89.69. SI overall option implied volatility of 41 is above its 26-week average of 51, according to Track Data, suggesting larger price movement.

MSCI Emerging Markets Index (EEM) is recently up 48 cents to $38.05 in pre-open trading. EEM overall option implied volatility of 35 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

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

Euro Currency Trust (FXE) closed at 122.98. FXE overall option implied volatility of 18 is above its 26-week average of 12, according to Track Data, suggesting larger price movement.

Market Vector Gold Miners (GDX) is recently up $1.07 to $50.01 in pre-open trading. Gold is recently up 1.27% to $1213.20. GDX overall option implied volatility of 43 is above its 26-week average of 41, according to Track Data, suggesting larger price movement.

MSCI Emerging Markets Index (EEM) is recently up 60 cents to $37.15 in pre-open trading. EEM over all option implied volatility of 38 is above its 26-week average of 31, according to Track Data, suggesting larger price movement.

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

CBOE Volatility Index (VIX) closed at an 18-month low, down 87 cents to 18.19.

Apple Inc. (AAPL) up $1.44 to $211.98. AAPL is expected to report Q1 EPS in on January 25. AAPL option volume was modest with 105K contracts trading on put volume of 30K. February option implied volatility is at 37, April is at 36, July is at 37; versus its 26-week average of 37 according to Track Data, suggesting non-directional price movement.

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

Barrick Gold (NYSE: ABX), the world's largest gold producer operating 27 mines on four continents, is recently up .30 to $45.91. Gold is up 0.28% to $810.80 according to Bloomberg. November option implied volatility of 43 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Goldcorp (NYSE: GG), Canada's third largest producer of gold, is recently down .06 to $35.66. GG November option implied volatility of 48 is above its 26-week average of 40 according to Track Data, suggesting larger price risk.

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

Intel (NASDAQ: INTC) volatility at 31into increase of third quarter revenue guidance.

• INTC is recently trading up $0.25 to $25.72 (12:32 p.m.).
  
• INTC says, "as a result of stronger than expected worldwide demand for its computing products, INTC now expects revenue for the third quarter to be between $9.4 billion and $9.8 billion as compared to the previous rang of $9 billion to $9.6 billion."
• INTC will report EPS on 10/16.
  
• INTC October option implied volatility of 31 is above its 26-week average of 28 according to Track Data, suggesting slightly larger risk.

Bear Stearns (NYSE: BSC) volatility Elevated prior to Aquarian announcing 6.97% positions.

• BSC is recently flat but originally was up $3.05 to $108.16 when the Dow Jones reported that Aquarian Investments is holding a 6.97% stake in BSC for investment purposes.
  
• BSC overall option implied volatility of 59 is above its 26-week average of 42 according to Track Data, suggesting large price movement.

Volatility Index S&P 500 Options-VIX up 0.46 to 26.69; 10-day moving average is 23.95.

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