Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Lowe’s (LOW) is recently down $2.64 to $25.84 on the company seeing FY12 EPS $1.73-$1.83, compared to consensus $1.87. June put option implied volatility of 31 is above its 26-week average of 28.

American Eagle (AEO) is recently up $1.89 to $20.29 after the company unveiled plans to exit the children’s business as the retailer also announced CFO Joan Hilson is stepping down. June call option implied volatility is at 48, July is at 44; above its 26-week average of 39.

Motorola Mobility (MMI) is recently up 77c to $39.97 on China approving Google’s (GOOG) purchase of
Motorola Mobility (MMI) for $40 pershare. June call option implied volatility is 6, October is at 7.

U.S. stocks have rallied and trading in a tight trading range after last week’s poor performance.

CBOE Volatility Index-VIX is recently down 2.45 to 22.65.