Blogging Options: CBOE Mid-day Update

Volatility as an asset class

PepsiCo (PEP) is recently up $1.19 to $67.13 after reiterating that it is targeting nearly $8B in cash flow from operating activities and that it anticipates more than $3B in share repurchases for 2012, and expects to pay $3.3B in dividends for 2012. Overall option implied volatility of 15 is below its 26-week average of 18.

Newell Rubbermaid (NWL) is recently up 18c to $18.45 after announcing a 25% dividend increase to 10c per share. June put option implied volatility is at 32, September is at 33; below its 26-week average of 35.
 
Costco (COST) is recently up $1.59 to $84.12 after announcing a quarterly cash dividend increase to 27.5c from 24c per share. June put option implied volatility is at 23, July is at 21; compared to its 26-week average of 21.

U.S. equities are higher on calm European debt markets.
 
CBOE Volatility Index (VIX) is recently down 1.16 to 18.92. May 18 and June 22 puts are active on total volume of 173K contracts.