Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Bank of America (BAC) is recently up 9% to $7.62 following Berkshire Hathaway (BRK’B) investing $5B in the company. September option implied volatility of 86 is above its six-month average of 39.

Apple (AAPL) is recently down 1.4% following Steve Jobs resigning as CEO. September call option implied of 33 is near its 26-week average of 31.

iShares MSCI Germany (EWG) is recently down 3.1% on euro-zone debt funding uncertainty. September put option implied volatility is at 51, January is at 45; above its 26-week average of 26.

CBOE Interest Rate 5 Year Note (FVX) up 2.1% to 9.84 into Ben Bernanke’s speech to Fed leaders in Jackson Hole on August 26. 

CBOE Volatility Index (VIX) up 8.4% to 38.91; September 25 puts active on 26K contracts.