Blogging Options: CBOE Mid-day Update

Volatility as an asset class
 
Sunoco (SUN) is recently up $8.03 to $48.94 on the company being acquired by Energy Transfer (ETP) in a unit and cash transaction valued at $50.13 per share, or a total consideration of approximately $5.3B. June call option implied volatility of 23 is below its 26-week average of 30.
 
Barnes & Noble (BKS) is recently up $8.55 to $22.24 on the company and Microsoft (MSFT) announcing the formation of a strategic partnership in a new digital reading subsidiary. Microsoft will make a $300M investment in Newco at a post-money valuation of $1.7B in exchange for an approximately 17.6% equity stake. Barnes & Noble will own approximately 82.4% of the new subsidiary. Barnes & Noble June call option implied volatility is at 67, July is at 61; below its 26-week average of 79.

Gen-Probe (GPRO) is recently up $12.84 to $81.55 on the company being acquired by Hologic (HOLX) for $82.75 per share in cash, or a total enterprise value of approximately $3.7B. June call option implied volatility of 19 is below its 26-week average of 34.
 
CBOE Volatility Index-VIX is recently up 95c to 17.27 CBOE Volatility Index- $VIX May 23P- July 20P, June 29C & Aug 25C active on total volume of 487K.
 
U.S. equities are mixed on profit taking going into Friday’s unemployment report.