Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Microsoft (MSFT) is recently down 81c to $28.68 after saying its Q1 revenue was negatively impacted by a challenging PC market and weakness in Europe. November put option implied volatility of 21 is below its 26-week average of 23.

General Electric (GE) is recently down 64c to $22.16 after it reported in-line earnings, but light revenues and lower guidance for 2012 revenues guidance. November put option implied volatility of 23 is near its 26-week average.

McDonald’s (MCD) is recently down $3.64 to $89.22 on Q3 results affected by competition in the U.S., global economic weakness and the stronger dollar. November put option implied volatility is at 16; near its 26-week average.

S&P 100 Options (OEX) is recently down 8.82 to $659.66 at midday on earnings and a lack of details from an emergency EU summit meeting.

CBOE Volatility Index (VIX) is recently up $1.58 to 16.61. VIX November and December calls are active on total option volume of 331K contacts at the CBOE.