Blogging Options: CBOE Afternoon Update

Volatility as an asset class:
Visa (V) is up $4.00 to $126.34 following a Q3 beat and authorizing $1B in buybacks. Overall option implied volatility of 30 is above its 26-week average of 28.
Western Digital (WDC) is up $6.23 to $38.72 following their better than expected results and bullish outlooks. August call option implied volatility is at 45, October is at 43; above its 26-week average of 44.
Las Vegas Sands (LVS) is down $1.87 to $35.64 on Q2 earnings falling 34% on lower casino win, legal expenses and certain impairment charges. Overall option implied volatility of 43 is near its 26-week average.

CBOE Volatility Index (VIX) is down 1.20 to 18.14. VIX August 20 calls are active on total volume of 124K contacts at the CBOE.

S&P 100 Options (OEX) are up 1.4% as European Bank President Mario Draghi said policy makers will do everything in their mandate to ensure the survival of the euro. SPX and the DJIA were also up over 1.4%, with the NASDAQ up 1.1%. European stocks and the Euro rallied, but only to levels from this time last week. The US 10-year rallied to a 1.44% yield. Scattered rain in the midwest pushed Bean prices down .22 (1.4%) Corn down 6 cents (0.8%).

Shortly after noon CDT, the CBOE had traded 2.77 million contracts with C2 trading an additional 125k. SPX has traded 325k options this morning, with Weekly’s accounting for over 100k. Some of the more active issues included SPY trading 285k contracts, IWM with 61k and the QQQ Weeklys with over 58k options. In equities, AAPL and FB were the volume leaders, each trading over 60k option contracts. FB earnings after the bell.