Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Rare earth stocks are rallying on reports supplies from China will end as the country tightens control over the resources, according to Chinese lawmakers, reported China Daily.
 
Molycorp (MCP) overall option implied volatility of 43 is below its 26-week average of 70.
 
Avalon (AVL) overall option implied volatility of 81 is below its 26-week average of 88.
 
Rare Earth Elements (REE) overall option implied volatility of 63 is below its 26-week average of 71.
 
IBM (IBM) is recently traded at $202.91, a new record high. Overall option implied volatility of 20 is below its 26-week average of 24 according to Track Data, suggesting decreasing price movement.
 
CBOE 30-Year Treasury bond (TYX) is recently up 40c to 32.10 into the Federal Open Market Committee decision on interest rate policy.