Blogging Options: CBOE Mid-day Update

Volatility as an asset class:
Arena (ARNA) calls more active than puts into diet dug Lorcaserin approved by FDA
Arena (ARNA) was halted at $8.73 into its diet drug Lorcaserin’s approval by the FDA. Overall option implied volatility of 172 is above its 26-week average of 145.
AutoZone (AZO) and Advance Auto Parts (AAP) volatility elevated into O’Reilly Automotive’s (ORLY) weak guidance
AutoZone (AZO) is recently down $19.14 to $357.32 following O’Reilly Automotive (ORLY) lowering Q2 guidance on weak June same-store sales. July, August, September and December call option implied volatility of 23 is above its 26-week average of 20.

Advance Auto Parts (AAP) is recently $1.05 to $64.90. July call option implied volatility is at 30, August is at 35, September is at 33; above its 26-week average of 27.

Stocks are higher on expectations China will announce an economic stimulus.
CBOE Volatility Index (VIX) is down 19.63 on a tight intra-day trading range of 19.38-20.12.