Blogging Options: CBOE Morning Update

Volatility as an asset class

J.B. Hunt (JBHT) is up $2.62 to $57.41 in the premarket on Q3 earnings rising 14% as the trucking company’s intermodal division posted strong results. Overall option implied volatility of 38 is above its 26-week average of 28.

AMD (AMD) is down 27c to $2.93 in the premarket after the chipmaker lowered Q3 guidance. Overall option implied volatility of 62 is above its 26-week average of 49.

JPMorgan (JPM) is up 20c to $42.30 after reporting Q3 EPS $1.40, compared to consensus $1.21. Overall option implied volatility of 27 is near its 26-week average.

CBOE Volatility Index (VIX) closed at 15.59, near its 10-day moving average of 15.54 and 50-day MA of 15.43.

Calls with increasing volume at CBOE;

S 11/17/2012 6 26K contracts

NFX 12/22/2012 40 20K

CLWR 11/17/2012 2.5 17K

PCS 11/17/2012 13 13K 532

FXI 11/17/2012 38 12K

XLF 11/17/2012 16 11K

U.S. stocks are mixed to higher, WFC $34.30, off $0.88 after lower Q3 revenues. September PPI up 1.1%, Core Unchanged (Core expected up 0.2%).

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