Blogging Options: CBOE Morning Update

Volatility as an asset class

Michael Kors (KORS) is up fractionally after the branded apparel company released a conservative outlook after a Q2 beat. November put option implied volatility is at 109, December is at 59, February is at 55; compared to its 26-week average of 58.

Hologic (HOLX) is down 39c to $20.00 after health products company provided guidance for the new fiscal year and quarter below analyst expectations. Overall option implied volatility of 51 is above its 26-week average of 35.

Home Depot (HD) is up $2.84 to $64.00 (to a 52-week high) after reports Q3 revenue of $18.1B, compared to consensus $17.93B. November put option implied volatility is at 29, December and January is at 25; compared to its 26-week average of 24.

CBOE Volatility Index-VIX is off 0.15 after closing yesterday at 16.68, below its 10-day moving average of 17.95, and 50-day moving average of 16.21.

Calls with increasing volume at CBOE;

S 2/16/2013 6 23K contracts

SPY 12/22/2012 146 12K

BAC 1/19/2013 10 11K

FB 11/17/2012 20 9K

AIG 1/19/2013 36 9K

MSFT 12/22/2012 32 8K

SPDR S&P ETF Trust (SPY) opened lowerbut rallied to a $0.20 gain in early trading as European leaders disagree on a target for Greece’s debt reduction. Asian stocks closed off 1%, European stocks were off slightly.