Blogging Options: CBOE Late-Afternoon Update

Volatility as an asset class
 
Dolby Labs (DLB)closed up $6.59 to $44.22 after its earnings beat consensus and it announced a new partnership with Microsoft (MSFT). June call option implied volatility is at 30, September is at 33; below its 26-week average of 42.

LeapFrog (LF) finished higher by $1.31 to $10.29 after its quarterly losses were not as steep as expected and its guidance exceeded expectations. June option implied volatility is at 45, September is at 49; below its 26-week average of 64.

Marriott International (MAR) announced that its board of directors approved a 30% increase in the company’s quarterly cash dividend to 13c per share. Overall option implied volatility of 25 is below its 26-week average of 29.
 
U.S. equities closed lower on disappointing non-farm payrolls and continued worries about Europe. The DJIA was off 168 points, The SPX down 22 to 1369. SPX volume approached 618k contracts and CBOE volume exceeded 5 million contracts. The CRB was down 4 points, the 10-year closed 1.88%.
 
CBOE Volatility Index-VIX finished the day up 1.60 to 19.20, 10-day moving average is 17.34, 50-day moving average is 17.07. VIX volume today was an active 336K contracts.

Let’s watch the elections in Europe this weekend and enjoy the Kentucky Derby.

mk