Volatility as an asset class
Oracle (ORCL) is recently up 84c to $27.96 on stronger than expected Q4 results and the company planning to buy back up to $10B in shares. July call option implied volatility is at 22, August is at 22, September is at 24; below its 26-week average of 31.
Discover Financial (DFS) is recently up 83c to $33.66 after reporting Q2 EPS $1.00, consensus $1.00. July call option implied volatility is at 25, August is at 28, October is at 31; compared to its 26-week average of 36.
Bank of America (BAC) is recently up 38c to $8.14 on optimism for the FOMC decision on June 20. June 8 weekly and July 8 calls are active on total CBOE volume of 70K contracts. July, August and September call option implied volatility of 44 is below its 26-week average of 53.
U.S. equities are trading near their highs of the day as the markets sets up for tomorrow’s FOMC decision. CBOE Volatility Index (VIX) is recently down 62c to 17.70 on liquid volume of 602K contracts.