Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Financial transaction service providers longer dated options have a higher option implied volatility than near term options, suggesting larger outer month risk.

Discover (DFS) is recently down 80c to $23.04 after reporting Q4 EPS 95c on revenue of $1.81B. January put option implied volatility is at 41, April is at 45; above its 26-week average of 41.

American Express (AXP) January put option implied volatility is at 31, April is 36; compared to its 26-week average of 33.

MasterCard (MA) January call option implied volatility is at 32, April is at 35; compared to its 26-week average of 33.

Visa (V) January call option implied volatility is at 26, March is at 33; compared to its 26-week average of 32

Financial Select Sector (XLF) is recently up 6c to $12.61. January put option implied volatility is at 34, February is at 37; above its 26-week average of 29, suggesting larger price movement.