Blogging Options: CBOE Afternoon Update

Volatility as an asset class;
 

Kraft Foods (KFT) is down 30c to $39.83 on the announcement the company will be removed from Dow Jones Industrial Average and into its scheduled spin-off of its North American grocery business on Oct. 1, 2012. October put option implied volatility is at 17, December is at 18; compared to its 26-week average of 17.
 
UnitedHealth (UNH) is up 3c to $53.93 on the announcement of its addition to Dow Jones Industrial Average. October put option implied volatility is at 25, November is at 29; compared to 26-week average of 27.

S&P 100 Options (OEX) is up 0.2% to 672.10 as treasury yields higher.
 
CBOE Volatility Index (VIX) recently up 64c to 14.68. VIX October 20 and 27calls are active on total option volume of 488K contacts at the CBOE. SPX volume over 730k mid-day, SPXpm weekly over 11k.