Blogging Options: CBOE Afternoon Update

Volatility as an asset class;

TiVo (TIVO) is up $0.40 to $9.97 after the company announced a settlement of patent litigation with Verizon (VZ). October call option implied volatility is at 35, November is at 37, January is at 40; below its 26-week average of 49.

Apple (AAPL) is down $9.35 to $690.70 after its IR department confirmed that the 5M sales figure for iPhone 5 over the first three days did not include iPhone 5 pre-orders that did not ship yet. October call option implied volatility is at 26, November is at 29; compared to its 26-week average of 30.

Molycorp (MCP) is down $1.24 to $11.76 on Chinese rare earth demand concerns. October option implied volatility is at 67, November is at 74, December is at 72 above its 26-week average of 64.

U.S. stocks are mixed to lower on China and Germany economic data indicating economic activity continues to weaken. Oil, Metals and Ag’s are off mid-day.

CBOE Volatility Index (VIX) is flat at 13.98. VIX opened above 15 but has been moving lower all day. VIX November 25 and 35 calls are active on total option volume of 290K contacts at the CBOE.