Blogging Options: CBOE Morning Update

Volatility as an asset class;

Tesla Motors (TSLA) is down $2.06 to $28.70 after lowering its 2012 revenue outlook to $400M-$440M from $560M-$600M. Overall option implied volatility of 41 is below its 26-week average of 46.

Caterpillar (CAT) is down $2.20 to $88.66 after lowering its forecast for profit growth over the next few years. Overall option implied volatility of 29 is below its 26-week average of 31.

Paychex (PAYX) is down $1.00 to $33.38 after the provider of benefits-outsourcing services reported less than expected Q1 revenue. Overall option implied volatility of 17 is near its 26-week average of 18.

Red Hat (RHT) is off $1.00 to $56.54 as the business-software provider reported Q2 profits fell 12%. Overall option implied volatility of 43 is above its 26-week average of 40.

CBOE Volatility Index (VIX) closed at 14.15, below its 10-day moving average of 14.56 and its 50-day MA of 15.99.
 

Calls with increasing volume at CBOE;

IWM 11/17/2012 85 59K contracts

GE 10/20/2012 23 39K

WFR 10/20/2012 3 21K

AAPL 9/28/2012 700 13K

SPY 9/28/2012 146 12K

VXX 10/20/2012 10 9K

European and Asian stocks were flat coming in to the US opening. U.S. stocks are mixed to higher into U.S. consumer confidence report. Case Schiller was an interesting number. The media was happy with a rise in August Home Prices of 0.4%, but it was less than expected (consensus up 0.9%, Price Headley yesterday in the CBOE Community said the consensus was a rise of 0.8%). August was lower than July’s +0.5% rise.