Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Money Center implied volatility increases as shares price decrease on profit growth uncertainty
 
Morgan Stanley (MS) is recently down 73c to $12.80. October put option implied volatility is at 143, November is at 115, January is at 107; above its 26-week average of 40.
 
Goldman Sachs (GS) October put option implied volatility is at 81, November is at 67; above its 26-week average of 32.

VIX methodology for Goldman Sachs (VXGS) up 14.4% to 87.77; near record high of 87.25
 
Bank of America (BAC) October put option implied volatility is at 88, November is at 94; above its 26-week average of 48 according to Track Data, suggesting large price movement.
 
Wells Fargo (WFC) October call option implied volatility is at 65, November is at 57; above its 26-week average of 42.