Citigroup (NYSE: C) is recently trading at $3.42 in pre-open trading, above its close of $3.08. C plans to seek shareholder approval to both increase the number of shares outstanding and undertake a reverse stock split as part of the company's effort to exchange common stock fro preferred securities. C announced on February 27 "Citi will offer to exchange common stock for up to $27.5 billion of its existing preferred securities and trust preferred securities at a conversion price of $3.25 a share. The U.S. government will match this exchange up to a maximum of $25 billion face value of its preferred stock at the same conversion price." C March 4 straddle closed at $1.19, April 4 straddle is priced at $1.06, June 4 straddle is priced at $2.60 according to Track Data, suggesting large price movement.

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

Popular, Inc. (NASDAQ: BPOP) volatility elevated at 51 as shares near 10-year low.

Comerica Incorporated (NYSE: CMA) option implied volatility elevated at 45.

Fifth Third Bancorp (NYSE: FITB) volatility elevated at 40 as shares near 1-year low.

TCF Financial Corporation (NYSE: TCB) volatility elevated at 53 as shares near six-year low.

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

Goldman Sachs (NYSE: GS) volatility Elevated into EPS, Risk Exposure & Outlook. GS is expected to report EPS on 9/20. Wachovia Corp.(NYSE:WB) say's "Lack of mortgage and Chinese exposure distinguish GS." GS September option implied volatility is at 50; October is at 45; above its 26-week average of 35 according to Track Data, suggesting larger risk.

Morgan Stanley (NYSE: MS) MS is expected to report EPS on 9/19. MS September option implied volatility is at 48; October is at 41; above its 26-week average of 33 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) is expected to report EPS on 9/20. Aquarian Investments holds a 6.97% stake in BSC for investment purposes. BSC Chairman & CEO James Cayne is 72. BSC Chairman of Executive committee Alan Greenberg is 79. WB say's BSC "shares are currently 1.2x book value compared to its historical average of 1.6x." BSC September option implied volatility is at 71; October is at 63; is above its 26-week average of 43 according to Track Data, suggesting large price movement.

Lehman Brothers (NYSE: LEH) is expected to report 3rd quarter EPS on 9/18. WCHV say's LEH's "Q3 started strong but ended real weak." LEH September option implied volatility is at 76; October is at 62; above its 26-week average of 40 according to Track Data, suggesting larger price risk.

General Motors (NYSE: GM) volatility Elevated into 9/14 UAW contract expiration. GM is recently down .10 to $32.97. The UAW's current four-year contract with all three automakers expires on September 14th. GM September option implied volatility of 45 is above its 26-week average of 39 according to Track Data, suggesting larger risk.

Ford (NYSE: F) volatility Elevated at 57 into 9/14 UAW contract expiration. F is recently up .17 to $8.24. The UAW's current four-year contract with all three automakers expires on September 14th. F over all option implied of 57 is above its 26-week average of 45 according to Track Data, suggesting larger risk.

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

Copano Energy (NASDAQ: CPNO) - Volatility Elevated into EPS & lower energy prices. CPNO is an energy company with natural gas gathering and intrastate transmission pipeline assets and natural gas processing facilities Oklahoma & Texas Gulf coast region. WTI Crude futures are down 3.56% to $72.79 according to Track Data. CPNO will announce EPS on 8/8. CPNO August option implied volatility of 41 is above its 12-week average of 20 according to Track Data, suggesting larger risk.

Enterprise Products (NYSE: EPD) - Implied volatility of 40 above 26-week average of 17. EPD transports natural gas, NGL's and crude oil through more than 35,000 miles of onshore and offshore pipelines. EPD September put implied volatility of 40 is above its 26-week average of 17 according to Track Data, suggesting larger risk.

Kinder Morgan Energy Partners (NYSE: KMP) - September volatility Elevated. KMP owns or operates 26,000 miles of pipelines and approximately 150 terminals. KMP September option implied volatility of 50 is above its 26-week average of 14 according to Track Data, suggesting larger risk.

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

Bear Stearns-(NYSE-BSC) volatility Elevated at 56; above 26-week average of 31. BSC is recently down $5.78 to $115.49. BSC August & September option implied volatility of 56 is above its 26-week average of 31 according to Track Data, suggesting larger price movement.

Lehman Brothers Holdings, Inc. (NYSE: LEH) volatility Elevated at 55, above 26-week average of 30. LEH is recently down $2.47 to $59.56. LEH call option volume of 16,716 contracts compares to put volume of 18,651 contracts. LEH August & September option implied volatility of 55 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX up 1.34 to 24.86.

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

Buffalo Wild Wings-(NYSE: BWLD) August volatility Elevated at 98 into 7/31 EPS. The company owns, operates and franchises 445 restaurants featuring chicken wings. BWLD is recently up .28 to $39.54. It will report EPS after the close on July 31st. BWLD August option implied volatility of 98 is above its 26-week average of 42 according to Track Data, suggesting larger risk.

Indymac Bancorp-(NYSE: IMB) August volatility Elevated at 110 into 7/31 EPS. Indymac, the 7th largest savings and loan and the 9th largest mortgage originator in the nation, will report EPS on July 31. Shares are recently down .48 to $22.61 on subprime mortgage concerns. IMB call option volume of 4,261 contracts compares to put volume of 13,489 contracts. IMB August option implied volatility of 110 is above its 26-week average of 44 according to Track Data, suggesting larger risk.

Disney-(NYSE: DIS) August volatilities up as expected into 8/1 EPS. Disney is expected to report EPS of .55 cents after the close on 8/1 according to Thomson First Call. CIBC has a $40 price target on DIS. DIS August option implied volatility of 27 is above its 26-week average of 21 according to Track Data, suggesting larger price fluctuations.

Time Warner-(NYSE: TWX) August volatility Elevated at 31 into EPS & Outlook. TWX is expected to report EPS of .21 cents on 8/1. TWX August option implied volatility of 31 is above its 26-week average of 21 according to Track Data, suggesting larger price fluctuations.

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

Hewlett-Packard (NYSE: HPQ) options suggests Flat Risk into EPS; HPQ near 6 ½ year high.

• HPQ is expected to report EPS of $0.68 cents on 5/16 according to Thomson First Call.
• SOLE says, "We remain positive on HPQ's ability to restructure, while holding and/or improving market share on HPQ's ability to restructure."
• HPQ May straddle is priced at $1.25. HPQ June option implied volatility of 25 is near its 26-week average according to Track Data, suggesting non-directional risk.

J.B Hunt Transport (NASDAQ: JBHT) calls volume and volatility Elevated on Takeover chatter.

• JBHT, a truckload, logistics and dedicated transportation services company, is recently up $0.41 to $28.73 on take over chatter.
• S&P's Rating Services lowered its long-term corporate rating on JBHT on 5/10/07 following JBHT's new $500 million share repurchase program announced on 5/2. JBHT has a market cap $4 billion.
• JBHT call option volume of 3,744 contracts compares to put volume of 19 contracts. JBHT June option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting upside hedging.

Option volume leaders today are: Amgen, Inc. (NASDAQ: AMGN), General Electric Co. (NYSE: GE), Apple Inc. (NADSAQ: AAPL) and Pfizer Inc. (NYSE: PFE).

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