Hartford Financial Services (NYSE: HIG) is scheduled to step into the earnings spotlight right after Tuesday's closing bell, with the insurance issue releasing its final third-quarter figures. Analysts are expecting Hartford to report a profit of $1.11 per share, according to Thomson Reuters, representing a dramatic reversal from its year-ago loss of $1.40 per share.

Hartford has a mixed history on the earnings front, with the company exceeding consensus expectations in two of the previous four reporting periods -- and falling short of Wall Street's predictions during the other two quarters. On the plus side, sector peer Lincoln National (NYSE: LNC) recently released a stronger-than-expected third-quarter report, which could bode well for Hartford.

After the opening bell, Nike (NYSE: NKE) will be reporting first-quarter earnings results. Analysts are looking for per-share results of 97 cents and revenue of $4.9 billion. Check out Michael Fowlkes' earnings preview for a complete look at this report.

On Monday, option players waved a bullish flag ahead of Nike's results, trading nearly 6,000 contracts at the October 65 strike. With the stock trading at $59.22, this front-month option (expiring in about two-and-a-half weeks) is out-of-the-money by nearly 10%. Open interest expanded from 2,696 to 7,116, meaning that most of these traded to open. The majority were in fact bought to open, trading for about 35 cents apiece.

Discover Financial Services (NYSE: DFS) is preparing for its upcoming turn in the earnings spotlight. The firm is scheduled to unveil its fiscal third-quarter results before the market opens Thursday, Sept. 17.

Ahead of the event, analysts surveyed by Thomson Reuters are expecting Discover to swallow a loss of about 12 cents per share, down sharply from its year-ago profit of 37 cents per share. Sales for the period are expected to arrive at $743 million.

Athens-based shipping issue DryShips Inc. (NASDAQ: DRYS) announced Monday that it will release its fourth-quarter and fiscal 2008 earnings results after the close of trading in New York today, March 24. Ahead of the report, buy-to-open call volume has been consistently heavy on the beaten-down stock.

During the past five days, traders on the International Securities Exchange (ISE) have bought to open 30,875 calls on DRYS, compared to jut 9,697 puts. In other words, bullish bets have been three times more popular than their bearish counterparts.

When Potash Corp. of Saskatchewan (NYSE: POT) fell from its June 2008 peak of $241.62, it fell hard. The stock bottomed out at $47.54 in early December, marking an 80.3% decline from peak to nadir. The shares have recently shown signs of life, though, having gained 78.7% during the past two months.

Even more compelling, POT closed last Friday atop resistance from its 20-week moving average for the first time since August, and appears poised to do so again this week. So, with the stock rallying back from its lows, why are investors gravitating toward bearish bets?

Google (NASDAQ: GOOG) closed at $471.10 Friday.

GOOG is expected to report Q1 EPS on April 17.

Cowen says: "ad budgets in search will remain robust because advertisers have historically favored high ROI channels that drive revenue – like direct mail – during recessions."

GOOG April 470 straddle is at $35, May 470 straddle is at $55 according to Track Data, suggesting large price movement.

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

Intuitive Surgical Inc. (NASDAQ: ISRG) develops, manufactures and markets robotic technologies designed to improve patient returns.

• ISRG is expected to report EPS on 10/18.
• Oppenheimer says: "We believe any competition ISRG faces is at least 7-10 years away. We believe the recent sell-off offers an opportunity. We continue to rate shares Buy and reiterate our $270 price target."
• ISRG October 250 straddle is priced at $30.90. ISRG overall option implied volatility of 80 is above its 26-week average of 48 according to Track Data, suggesting larger price risk.

Yahoo! Inc. (NASDAQ: YHOO) is expected to report EPS of 8 cents 10/16 according to Thomson First Call.

• Alex Brown has a Hold rating and a $24 price target on YHOO.
• Alex Brown says: "We expect YHOO to report 3Q results in-line to slightly below expectations, as US traffic declines of 9% and search volume slowdown may pressure growth."
• YHOO October 27.5 straddle is priced at $2.71. YHOO November option implied volatility of 51 is above its 26-week average of 36 according to Track Data, suggesting larger risk.

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

Visit AOL Money & Finance for more earnings coverage

The Bear Stearns Companies Inc. (NYSE: BSC)'s option prices decrease after the Federal Open Market Committee lowers rates; BSC earnings per share (EPS) come out on September 20:

BSC is expected to report 3Q EPS of $1.78 on September 20, according to Thomson First Call. BSC was recently up $3.22 to $118.47. The FOMC lowered the Fed Funds rate by .50 to 4.75%. BSC September 120 straddle was priced at $7.30. BSC October option implied volatility of 49 was below a level 58 from two hours ago and below its 7-week average of 57 according to Track Data, suggesting decreasing price risk.

Morgan Stanley (NYSE: MS) volatility decreases after FOMC Lowers rates:

MS EPS comes out on September 19. MS is expected to report 3Q EPS of $1.53, according to Thomson First Call. MS was recently up $3.68 to $68.58. The FOMC lowered the Fed Funds rate by .50 to 4.75%. MS September 70 straddle was priced at $3.05. MS October option implied volatility of 35 was below a level of 38 from two hours ago and near its 7-week average of 38 according to Track Data, suggesting decreasing risk.

The Goldman Sachs Group, Inc. (NYSE: GS)'s option prices decrease after FOMC lowers rates:

GS EPS comes out September 20. GS is expected to report 3Q EPS of $4.35, according to Thomson First Call. GS was recently up $11.75 to $199.35. The FOMC lowered the Fed Funds rate by .50 to 4.75%. GS September 200 straddle was priced at $8.40. GS October option implied volatility of 33 was below a level of 39 from two hours ago and below its 26-week average of 35 according to Track Data, suggesting larger risk.

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

Nike (NYSE: NKE) option prices up into 9/20 EPS & Outlook. NKE will report EPS on 9/20. Thomson First Call estimates 1Q EPS of $0.87 cents. TWPT has a 12-month price target of $62.92 and say's "expect healthy growth in futures orders." NKE September 55 straddle is priced at $3.60. NKE October option implied volatility of 28 is above its 26-week average of 25 according to Track Data, suggesting larger price fluctuations.

CarMax (NYSE: KMX) option prices Elevated into 9/19 EPS & Guidance. KMX is expected to report 2Q EPS of $0.29 cents 9/19 according to Thomson First Call. Goldman Sachs say's "the stock still screens as inexpensive relative to historical levels, and we continue to believe lingering credit concerns may be overdone." KMX September 25 straddle is priced at $2.35. KMX October option implied volatility of 57 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

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

Oracle (NASDAQ: ORCL) is expected to release 1st quarter EPS of .21 after the close on 9/20. Goldman Sachs says "ORCL currently trades at a significant discount to the group on an EPS basis at 16X our CY08 EPS estimate (ex-ESOs) vs. the group median of 20X." GSCO has a $24 price target on ORCL. ORCL September 20 straddle is priced at .95 cents. ORCL October option volatility of 32 is above its 26-week average of 28 according to Track Data, suggesting larger near term fluctuations.

Business Objects (NASDAQ: BOBJ), a global provider of business intelligence software solutions, is recently up $2.52 to $44.90. BOBJ has a market cap of $4.2 billion. Bank America says "French newspaper Le Figaro has reported that BOBJ has put itself up for sale and citing interest by several companies, including SAP. BOBJ & SAP have declined to comment on the speculation." BOBJ September 45 straddle is priced at $2.65. BOBJ October option implied volatility of 48 is above its 26-week average of 34 according to Track Data, suggesting larger price risk.

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

Countrywide Financial (NYSE: CFC) options suggest $4 move in next two-days. CFC, the largest U.S. home mortgage lender, is recently down $4.35 to $20.25. August options expire on 8/17. CFC call option volume of 132,841 contracts compares to put volume of 355,188 contracts. CFC August 20 straddle is priced at $4.05. CFC September option implied volatility of 163 is above its 26-week average of 55 according to Track Data, indicating larger price fluctuations.

Goldman Sachs (NYSE: GS) August 165 straddle priced at $7.30 with two-days till expiration. GS is recently down $2.64 to $167.03. GS August 165 straddle is priced at $7.30. August options expire on 8/17. GS September option implied volatility of 57 is above its 26-week average of 31 according to Track Data, suggesting larger price fluctuations.

Bear Stearns (NYSE: BSC) August 105 straddle priced at $5.50 with two-days till expiration. BSC is recently down $2.09 to $104. BSC August 105 straddle is priced at $5.50. August options expire on 8/17. BSC September option implied volatility of 75 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Lehman (NYSE: LEH) August 50 straddle priced at $4.40 with two-days till expiration. LEH is recently down $1.85 to $51.83. LEH August 55 straddle is priced at $4.40. August options expire on 8/17. LEH September option implied volatility of 73 is above its 26-week average of 34 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX up 3.20 to 30.88

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

Goldman Sachs (NYSE: GS) volatility increase suggests greater Crises. GS is recently down $7.62 to $169.99. GS September option implied volatility of 57 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) implied volatility increase suggests greater Crises. BSC is recently down $2.31 to $107.41. James E. Cayne is chairman of the board and CEO of BSC. BSC has been a board member since 1985. BSC call option volume of 7,419 contracts compares to put volume of 10,103 contracts. BSC September option implied volatility of 78 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Lehman (NYSE: LEH) September volatility of 73 above 26-week average of 33. LEH is recently down $2.55 to $54.79. LEH call option volume of 18,902 contracts compares to put volume of 33,956 contracts. LEH August 55 straddle is priced at $4.60. LEH September option implied volatility of 73 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Priceline (NASDAQ: PCLN) August straddle Expensive at $7.20 into EPS. PCLN is recently up $3.08 to $64.81. PCLN will report EPS after the close tonight. PCLN August straddle is priced at $7.20. PCLN September option implied volatility of 54 is above its 26-week average of 36 according to Track Data, suggesting larger price fluctuations.

Sprint Nextel (NYSE: S) option prices Elevated as expected into 8/8 EPS. S is expected to report EPS of 22 cents before the open on 8/8 according to Thomson First Call. Stanford Group says "a key data point will be whether S has been able to turn around its postpaid subscriber business." S August 20 straddle is at $1.70. S September option implied volatility of 39 is above its 26-week average of 29 according to Track Data, suggesting larger risks.

Knot Inc. (NASDAQ: KNOT) August straddle Expensive at $3.50 EPS & Outlook. KNOT, the nations leading wedding resource that reaches over 1 million engaged couples each year, will report EPS on 8/8. CIBC says "the 23% drop in the stock since the reporting of 1Q is largely attributed to investors' growing skepticism of management's ability to effectively monetize its assets. Without a material catalyst, the shares are not yet 'cheap' enough." KNOT August 17.5 straddle is at $3.50 according to Track Data, suggesting larger fluctuations.

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

The Volatility Index for S&P 500 Options (VIX) is up 1.33 to 14.28.

Option volume leaders today are: Apple Computer (NASDAQ: AAPL), Tesoro (NYSE: TSO), Oracle (NASDAQ: ORCL) and Microsoft (NASDAQ: MSFT).

Dendreon (NASDAQ: DNDN) straddles the expensive rating on heavy volume, suggesting Large Risk. DNDN, a biotechnology company focused on the discovery, development and commercialization of therapeutics that harness the immune system to fight cancer, is recently up $.57 to $5.03. DNDN's lead drug Provenge (for treatment of asymptomatic, metastatic, androgen-independent prostate cancer) has a Prescription Drug User Fee Act (PDUFA) review date on May 15th. DNDN call option volume of 15,831 contracts compares to put volume of 14,850 contracts. The DNDN April 5 straddle is at $3.20 and the May straddle is priced at $4.05, suggesting large price risk.

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