Blogging Options: CBOE Afternoon Update

Volatility as an asset class

Chevron (CVX) is down $4.95 to $112.42 with an active 13 million shares traded, after lowering its Q3 profit because of Hurricane Isaac. Overall option implied volatility of 18 is below its 26-week average of 20.

Costco (COST) is up $2.75 to $102.39 on a Q4 earnings beat helped by an extra week of membership. November call option implied volatility is at 16, December is at 15; compared to its 26-week average of 19.

United States Oil Fund (USO) is down $0.21 to $33.96 as WTI crude oil recently trades down 0.49% to $91.94. October, November and December call option implied volatility of 30 is near its 26-week average.

CBOE Volatility Index (VIX) has given up gains in the last 90 minutes and is unchanged at 16.37. VIX November 18 calls and puts are active on total option volume of 390K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 3.86 to $659.52 at midday despite positive results from Costco (COST), Alcoa (AA) and Yum! Brands (YUM). Beige Book showed little to propel markets in either direction.