A survey conducted by Johnson Associates, a compensation consultant firm, indicates that compensation for employees of hedge funds, retail banking and private equity firms will be higher by 5%, The Wall Street Journal reports.

Here are some findings of the Johnson sturdy:

• Bond traders will see bonuses for 2010 decline 25% to 30%.
• Stock traders will see bonuses fall by 20% to 25%.
• Employees of asset management firms, including hedge funds, can see a 5% gain, reflecting the increase in assets under management.
• Retail banks are set to increase bonuses 5% to 10%.
• Despite this year's increases, bonuses will be 20% to 30% lower than the all time high in 2007.

Volatility Index S&P 500 Options-VIX up 6.30 to 36.97; 10-day average is 26.78

E-Trade (NASDAQ: ETFC) put volume & volatility at Panic levels on sell-off. ETFC is recently down $3.28 to $10.60. SBSH said on 8/12 "Disclosure in 10-Q short on substance from our viewpoint. Mgmt provided minimal new information on the composition of its $28 billion mortgage portfolio."
ETFC call option volume of 37,882 contracts compares to put volume of 87,399 contracts. ETFC September option implied volatility of 210 is above its 26-week average of 37 according to Track Data, suggesting large price fluctuations.

Countrywide Financial - (NYSE: CFC) put volume & volatility Spike; indicating Crisis. CFC, a home mortgage lender, is recently down $4.18 to $17.13. CFC announced "it has supplemented its funding liquidity position by drawing on an $11.5 billion credit facility." Moody's Investors Services downgraded CFC rating to Baa3. CFC call option volume of 204,765 contracts compares to put volume of 412,286 contracts. CFC September option implied volatility of 210 is above its 26-week average of 56 according to Track Data, indicating larger price fluctuations.

More Countrywide Financial news

Peter Cohan: What the mortgage meltdown means to you
Eric Buscemi: George Bailey, meet Angelo Mozilo
Kevin Shult: Analyst downgrades: AN, CFC, DRI and RARE
Peter Cohan: Countrywide (CFC) meltdown continues
Michael Fowlkes: Countrywide Financial (CFC) adds to subprime panic
Peter Cohan: Could Countrywide Financial (CFC) be put down?
Sheldon Liber: Buy on fear today? Bear Stearns (BSC), Countrywide (CFC), IndyMac (IMB), Popular (BPOP), Washington Mutual (WM)

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

Volatility Index S&P 500 Options-VIX down .37 to 9.97.

Qualcomm Inc. (NASDAQ:QCOM) option implied volatility is low as suggesting reduced Risk

Qualcomm is recently up $1.83 to $39.90. Traders are adjusting their positions on Qualcomm managements litigation/negotiations with Nokia Corp. (NYSE:NOK) and trends for CDMA/3G heading into 2007. American Technology Research reiterated its Buy rating on QCOM this morning. QCOM call option volume of 71,230 contracts compares to put volume of 27,416 contracts. QCOM April option implied volatility of 32 is below its 26-week average of 35 according to Track Data, suggesting non-directional risks.

Network Appliance Corp. (NASDAQ:NTAP) Feb options indicate risk into EPS, March suggests less risk

Network Appliance, a provider unified storage solutions, is expected to report EPS of $0.28 after the close tonight. Morgan Keegan has an Outperform rating on Network Appliance. NTAP February 37.5 straddle is priced at $2.05, above its theoretical value of $1.08. NTAP March option implied volatility is at 30, below its 26-week average of 37 according to Track Data, suggesting decreasing price risks.

Option volume leaders today were: U.S. Steel Corp. (NYSE: X), Apple Inc. (NASDAQ:AAPL), Ford Motor Corp. (NYSE: F), Alcoa Inc. (NYSE: AA), Garmin Ltd. (NASDAQ-GRMN) and Google Inc. (NASDAQ: GOOG).

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

Volatility Index S&P 500 Options-VIX up .27 to 10.59.

New Century Financial Corp. NYSE: NEW implied volatility bid up as NEW sells off on restatement. New Century Fin'l, a real estate investment trust, providing mortgage products to borrowers nationwide, is recently down $8.72 to $21.45. New Century Fin'l announced it will have to restate operating results for the first three quarters of 2006. Merrill Lynch downgraded NEW to Sell, Jeffries lowered to Hold & Friedman Billings downgraded NEW to Underperform. NEW March option implied volatility of 69 is above its 26-week average of 42 according to Track Data, suggesting larger price risks.

H&R Block-NYSE:HRB April option implied volatility & put volume elevated on hedging. H&R Block is recently down $.30 to $24.54. Soleil said on 2/7/07 "we rate H&R Block Buy; $29 price target. We believe Block is close to entraining sale of the company (whole or in parts)." H&R Block call option volume of 2,945 contracts compares to put volume of 42,299 contracts. HRB April option implied volatility of 33 is above its 26-week average of 26 according to Track Data, suggesting larger price fluctuations.

Option volume leaders today were: Cisco-(NASDAQ-CSCO), Akamai (NASDAQ: AKAM), Bristol Meyers Squibb (NYSE: BMY) and Apple Computer (NASDAQ: AAPL).

Volatility Index S&P 500 Options-VIX up 1.19 to 11.16.

Microsoft Corp's. (NASDAQ: MSFT) February option implied volatility collapsed to 19 after record Q2 revenue of $12.54 billion. Microsoft reported Q2 EPS of 26 cents versus consensus estimates of 23 cents. Q2 revenue rose 6%. Microsoft launches Vista, Office 2007 and exchange Server 2007 on 1/30. Goldman Sachs says "good second quarter and stronger growth ahead." Microsoft February option implied volatility of 17 is below its 26-week average of 22 according to Track Data, suggesting decreasing price risk.

General Motors' (NYSE: GM) implied volatility was low at 34 going into the financial delay on its restatement. General Motors will delay its Q4 and full year earnings report, which was expected to be released next week, to again restate financial results. Citigroup has a $24 price target on General Motors. General Motors' overall option implied volatility of 34 is below its 26-week average of 42, according to Track Data, suggesting decreasing price fluctuations.

Option volume leaders today were: Amgen (NASDAQ: AMGN), Apple Computer (NASDAQ: AAPL), Nokia (NYSE: NOK), Microsoft and eBay (NASDAQ: EBAY).

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

Volatility Index S&P 500 Options-VIX up 1.19 to 11.16.

Equity Office Properties Trust's (NYSE: EOP) volatility is at 15 into Blackstone raising bid to $54 cash. Equity Office Properties is recently trading at $54.66, suggesting a higher bid is expected from other groups. Equity Office Prop announced it has amended its merger agreement entered on 11/19/06 with Blackstone Group. Blackstone will acquire all of Equity Office Prop common stock for $54 a share in cash. A group led by Vornado Realty Trust (NYSE:VNO) had bid $52. Equity Office Properties' overall option implied volatility of 15 is near its 2-month average, according to Track Data.

Akamai Technologies' (NASDAQ: AKAM) February option implied volatility flat is at 50. Akamai will report EPS on 2/7/07. Akamai, a leading global service provider for accelerating content and business processes online, recently traded at $53.47. Deutsche Bank has a $59 price target on Akamai . Alex Brown said, "We expect Akamai to deliver a strong 4Q with potential upside to our estimates on strong internet retail sales during the holiday season." Akamai's February option implied volatility of 50 is near its 26-week average, according to Track Data, suggesting non-directional price fluctuations.

Option volume leaders today were: Google Inc. (NASDAQ: GOOG), Apple, Inc.(NASDAQ: AAPL), US Steel (NYSE: X), Microsoft Corp. (NASDAQ: MSFT) and eBay, Inc. (NASDAQ: EBAY).

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

Do traders have souls?

That's a question that always springs to mind when I watch the market buzz surrounding any disaster. Whether it's Hurricane Katrina, the great Tsunami, or this week's coup in Thailand; you'll always see articles like this one in the Wall Street Journal [subscription required]. Teaser: "Analysts React to Thai Coup: 'Bargain Opportunity'"

Lovely. It reminds me of a piece I heard on This American Life, Ira Glass' gripping radio show. A commodities trader recounts his education in chaos after the Chernobyl accident. He got to work late, a little stunned by the news, and was amazed to see the energy level was nearing giddy on the trading floor. "That disaster made more money, in one day, that I had made my entire life up 'til then," he said, chuckling uncomfortably.

Michael Kurtz at Bear Stearns has obviously restrained himself greatly, using words like "regrettable" and "political frictions" and "toll." But you can almost feel a teensy bit of glee sparkling through from the Bear Stearns trading floor (you know those traders are known for their distinct lack of polish, don't you?) when he writes, "Investors have heavily penalized Thai stocks since last year amid deepening political uncertainty, with the benchmark SET Index having gained just 9% in U.S. dollar terms since January 2005; as such, the SETI now elicits some of the region's deepest valuation discounts."

There you have it: scoop up the bargains in Thailand, enjoy the chaos while it lasts. If your soul can handle it.