Blogging Options: CBOE Morning Update

Volatility as an asset class

Target (TGT) is down 80c to $62.95 in the premarket after reporting October SSS were up 2.4%. Overall option implied volatility of 19 is near its 26-week.

Costco Wholesale (COST) is unchanged in pre-market trading after reporting October SSS rose 7%, international SSS were up 9%. Overall option implied volatility of 19 is near its 26-week average.

Macy’s (M) is up 87c to $38.94 in the premarket after reporting October SSS up 4.1%. Overall option implied volatility of 30 is near its 26-week average of 32.

Gap (GPS) is trading near its closing price after reporting October SSS rose 4%. Overall option implied volatility of 35 is above its 26-week average of 32.

Limited Brands (LTD) higher by $0.87 to $38.94 in the premarket after reporting October comparable store sales increased 3%. Overall option implied volatility of 35 is near its 26-week average of 34.

CBOE Volatility Index (VIX) closed at 18.60 above its 10-day moving average of 17.59 and 50-day MA of 15.98.

U.S. stocks are mixed to higher into Friday’s October jobs report and Presidential election. XOM had good numbers but missed on the bottom line. ADP reported a gain of 158k jobs in October, but their estimates have been all over the board for the last year (and new methodology revised last months gains from 162k down to a rise od 88,200). Weekly Jobless Claims missing a few states and DC due to Sandy).