Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Avon (AVP) is recently up 16c to $15.65 as the door to door cosmetics vendor reported Q3 profit decreasing 81% on weaker sales. December, January and April call option implied volatility of 40 is near its 26-week average of 41.

Visa (V) is recently up $4.86 to $143.62 after world’s largest payments network posted an 88% increase profit in Q4. December, January and March call option implied volatility of 19 is below its 26-week average of 25.
Zumiez (ZUMZ) is recently down $4.09 to $21.23 after the teen-apparel retailer reported lowered its Q3 earnings on weaker than expected October same store sales. November put option implied volatility is at 53, December and February is at 56; compared to its 26-week average of 54.

U.S. stocks are sharply higher at midday amid positive readings from two separate reports related to the U.S.’s employment picture into Friday’s October jobs report.

CBOE Volatility Index (VIX) is recently down $1.38 to 17.22. November 16 and 18 puts are active on total option volume of 204K contacts at the CBOE.