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Paul Foster
Chicago U.S.A. - http://

Paul Foster, a knowledgeable researcher has 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers and acquisitions.

Infosys (NASDAQ: INFY), a technology services firm based in India, closed at $40.80 Tuesday. INFY chief executive said: "We are not seeing any trends towards driving prices downwards. There is (however) uncertainty about when the macro-environment will turn around" Down Jones. INFY overall option implied volatility of 43 is near its 26-week average according to Track Data, suggesting non-directional risk.

Satyam Computer Services (NYSE: SAY), a technology solution provider based in India, closed at $21.91 Tuesday. SAY overall option implied volatility of 53 is near its 26-week average, suggesting non-directional price fluctuations.

Wipro Ltd (NYSE: WIT), a technology services company based in India, closed at $11.60 Tuesday. Goldman Sachs raised its rating to Neutral from Buy on August 19. WIT overall option implied volatility of 50 is near its 26-week average of 47, suggesting non-directional price movement.

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

Daimler AG (NYSE: DAI) closed at $59.55 Monday. DAI overall option implied volatility of 35 is near its 26-week average of 33 according to Track Data, suggesting non-directional price movement.

Ford (NYSE: F) closed at $4.89 Monday. F overall option implied volatility of 78 is above its 26-week average of 69 according to Track Data, suggesting larger price movement.

General Motors (NYSE: GM) closed at $10.36 Monday. GM September call option implied volatility is at 87, puts are at 103; above its 26-week average of 72, suggesting larger price fluctuations.

Honda (NYSE: HMC) closed at $33.42 Monday. HMC over all option implied volatility of 33 is near its 26-week average, suggesting non-directional risk.

Toyota Motor (NYSE: TM) closed at $90.75 Monday. TM overall option implied volatility of 29 is near its 26-week average, suggesting non-directional price movement.

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

Target (NYSE: TGT) is scheduled to report Q2 EPS on August 19. TGT September & October option implied volatility of 43 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Gap (NYSE: GPS) is scheduled to report Q2 EPS on August 21. GPS September option implied volatility of 47 is near its 26-week average of 43, suggesting slightly larger price movement.

Limited Brands (NYSE: LTD) is scheduled to report Q2 EPS after the market close on August 20. LTD September option implied volatility of 51 is near its 26-week average, suggesting non-directional price movement.

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

Anglogold (NYSE: AU) closed at $27.47 Thursday. Gold is recently down 3.11% to $789.20 according to Bloomberg. AU September option implied volatility of 51 is above its 26-week average of 43 according to Track Data, suggesting larger movement.

Valero Energy (NYSE: VLO) closed at $33.93 Thursday. Crude oil futures are recently down 1.64% to $113.37. VLO September option implied volatility of 53 is above its 26-week average of 47 according to Track Data, suggesting larger price movement.

Southern Peru Copper (NYSE: PCU) closed at $24 Thursday. Copper is recently down 3.80% to 326 according to Bloomberg. PCU September option implied volatility of 53 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Archer Daniels (NYSE: ADM) closed at $26.62 Thursday. Corn futures are recently down 3.38% to 557.75, Soybean futures are down 2.59% to 1241 according to Track Data. ADM September option implied volatility of 44 is above its 26-week average of 40 according to Track Data, suggesting slightly larger price movement.

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

Nordstrom (NYSE: JWN) is expected to report Q2 EPS today after the market close. JWN August 30 straddle is priced at $2.90, September 30 is at $4.40. JWN September option implied volatility of 58 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

Red Robin Gourmet (NASDAQ: RRGB) is scheduled to report Q2 EPS today. RRGB August 30 straddle is priced at $2.60, September is at $5.15. RRGB September option implied volatility of 64 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

Heelys (NASDAQ: HLYS) is recently up 68 cents to $5.55 in pre-open trading. Skechers (NYSE: SKX) made an acquisition proposal to acquire HLYS for $5.25 per share ($142 million) in cash. HLYS, wheel-in-the-heel footwear marketer, closed at closed at $4.87. HLYS traded at a record high of $40.09 in February 2007. HLYS over all option implied volatility of 77 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

CVS Caremark (NYSE: CVS) announced the acquisition Longs Drug Stores (NYSE: LDG) for $71.50 per share in cash. LDG closed at $54.04.

Pershing Square filed a 13D on August 5 indicating an ownership of 8.8% of LDG. LDG was expected to report Q2 EPS in mid-August.

LDG option volume was heavy over the last seven trading days. LDG August 55 straddle closed at $2.55, September 55 straddle was at $7.30. LDG September option implied volatility of 51 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

CVS closed at $38.05. Jefferies says: "We believe CVS/Caremark's unique competitive position; substantial revenue/EPS upside opportunity, and still modest valuation should lead to significant equity appreciation."

CVS September option implied volatility of 28 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

LDK Solar (NYSE: LDK) is recently trading at $40.25 in pre-open trading, above its close of $33.58. LDK reported Q2 revenue of $441.7 million, up 89.2% quarter-over-quarter. ThinkEquity says: "The shares of LDK offer significant upside, with its impending polysilicon production, which should lower the company's cost structure significantly." LDK August 35 straddle is priced at $3.95. LDK September call option implied volatility is at 74, puts are at 85; near its 26-week average according to Track Data. LDK puts are priced higher than calls because LDK is difficult to borrow.

Applied Materials (NASDAQ: AMAT) closed at $18.46 Monday. AMAT is scheduled to report Q3 EPS after the market close today. Kaufman Bros says: "We reiterate our Hold and $19 price target." AMAT August straddle 18 is priced at $1.10, September is at $1.90. AMAT September option implied volatility of 36 is near its 26-week average according to Track Data, suggesting non-directional movement after EPS.

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

PetroChina (NYSE: PTR) closed at $132.04 Friday. WTI Crude Futures are recently up 1.03% to $116.39 according to Bloomberg. PTR over all option implied volatility of 40 is below its 26-week average of 46 according to Track Data, suggesting decreasing movement.

CNOOC Ltd (NYSE: CEO) closed at $133.78 Friday. CEO overall option implied volatility of 43 is near its 26-week average according to Track Data, suggesting non-directional risk.

Canadian Natural (NYSE: CNQ), an oil and natural gas production company, closed at $72.72 Friday. CNQ September option implied volatility of 54 is above its 26-week average of 45, suggesting larger price movement.

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

Lowe's (NYSE: LOW/Option chains) is expected to report Q2 EPS on August 18. Deutsche Bank has a $23 price target on LOW. LOW September option implied volatility of 50 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Home Depot (NYSE: HD/Option chains) is scheduled to report Q2 EPS on August 19. Deutsche Bank has a $22 price target on HD. HD September option implied volatility of 44 is above its 26-week average of 39, suggesting larger price movement.

Russell 2000 (NYSE: IWM/Option chains) overall implied volatility at 25; 26-week average is 27.

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

Hershey (NYSE: HSY) closed at $40.23 Wednesday. HSY call volume was heavy on August 6, with 21,092 contracts trading. HSY August option implied volatility is at 56, September at 44; above its 26-week average of 30 according to Track Data, suggesting larger price movement.

Rambus (NASDAQ: RMBS) closed at $15.34 Wednesday. RMBS is the frequent subject of patent infringement & anti-trust claim issues. Hynix Semiconductor, Samsung Electronics and Micron Tech (NYSE-MU) have had patent infringement suits with RMBS. RMBS September option implied volatility of 103 is above its 6-month average of 74 according to Track Data, suggesting larger price movement.

Financial Select Sector-XLF overall volatility at 39; 26-week average is 38

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

Volatility Index S&P 500 Options-VIX at 21.13; 10-day moving average is 22.52.

Boeing (NYSE: BA) is recently up 20 cents to $64.80. Goldman Sachs says "Removing from the conviction sell list on crude pullback." BA September option implied volatility of 33 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

American International (NYSE: AIG) is scheduled to report Q3 EPS after the market close today. Societe Generale started AIG at Sell. AIG August option implied volatility is at 99, September is at 69; above its 26-week average of 51 according to Track Data, suggesting larger price movement.

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

Chesapeake Energy (NYSE: CHK) closed at $45.25 Monday. Natural Gas futures are recently down 2.25% to $8.53 according to Bloomberg. BMO Capital Markets has a $68 target price on CHK. CHK September option implied volatility of 61 is above its 26-week average of 42 according to Track Data, suggesting larger price movement.

SPDR Gold Trust (NYSE: GLD), a commodity-based exchange traded security, closed at $86.84. Gold is recently trading down 1.70% to $892.50. GLD option volume was heavy on August 4, 2008 with 106,112 contracts trading. GLD over all option implied volatility of 25 is near its 9-week average according to Track Data, suggesting non-directional price movement.

Companhia Vale do Rio Doce (NYSE: RIO) will report Q2 EPS on August 6. RIO, a Brazilian mineral company, closed at $26.36. Goldman has a Buy rating on RIO. RIO option volume was heavy on August 4, 2008, with 237,545 contracts trading. RIO August option implied volatility is at 66, September is at 56; above its 26-week average of 49 according to Track Data, suggesting larger price movement.

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

SINA Corp (NASDAQ: SINA), a Chinese online media company, is scheduled to report Q2 EPS on August 6. SINA August option implied volatility is at 78; September is at 55. SINA average option implied volatility over the last 26-weeks is 58 according to Track Data, suggesting larger August price movement.

The9 (NASDAQ: NCTY), an online game operator headquartered in Shanghai, closed at $22.73. NCTY is scheduled to report Q2 EPS on August 7. NCTY August option implied volatility is at 101, September at 81; above its 26-week average of 69, suggesting larger price movement.

NetEase (NASDAQ: NTES), an interactive online community in China, is scheduled to report Q2 EPS after the market close on August 13. NTES August option implied volatility of 70 is above its 26-week average of 45, suggesting larger price fluctuations.

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

Biogen (NASDAQ: BIIB) was trading at $54.71 in pre-open trading, below its close of $69.76 Thursda. BIIB and Elan (NYSE: ELN) announced their multiple sclerosis treatment Tysabri, was linked to brain infection. BIIB August option implied volatility was at 42, September at 39; near its 26-week average of 39 according to Track Data, suggesting non-directional price movement.

ELN was trading at $10.78 in pre-open trading, below its close of $20.05. ELN August option implied volatility was at 65, October at 58; below its 26-week average of 70, suggesting decreasing price movement.

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

Crocs (NASDAQ: CROX) is trading at $5.06 late this morning, well below its close of $8.94. CROX lowered Q2 and 2008 financial guidance. Robert Baird Co lowered its rating to Neutral from Outperform. CROX over all option implied volatility of 91 is above its 26-week average of 84 according to Track Data, suggesting larger price movement.

Mechel Steel (NYSE: MTL) closed at $22.84, and is trading up this morning at $26.40. MTL sold off 38% on July 24 after Russian Prime Minister Vladimir Putin ordered antitrust authorities to investigate selling prices at steel and coal group MTL. MTL August option implied volatility is at 162, October is at 105, above its 26-week average of 66 according to Track Data, suggesting larger price fluctuations.

Elan Corp (NYSE: ELN) closed at $32.34 and, as of 11:15 Friday morning, is trading at $33.43. ELN's & WYE's Bapineuzumab (Alzheimer's treatment) Phase 2 trial results will be presented at the International Conference on Alzheimer's Disease on July 29. ELN August option implied volatility is at 97, October is at 70; above its 26-week average of 69 according to Track Data, suggesting larger price fluctuations.

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