Blogging Options: CBOE Afternoon Update

Volatility as an asset class

Corning (GLW) is recently up $0.79 to $12.13 on the company seeing stronger than forecasted Q4 LCD glass volume. Overall option implied volatility of 32 is near its 26-week average of 33.

McMoRan Exploration (MMR) is down 31% ($1.15 today) over the last two-days after announcing Davy Jones #1 is not producing a measurable flow rate. December call option implied volatility is 80, January is at 82; above its 26-week average of 77. December 9 calls and puts are active on total CBOE volume of 119K contracts.

ARM Holdings (ARMH) is recently up 57c to $36.49 to a fresh record high as the chip designer benefits from sales to tablet manufactures. Overall option implied volatility of 32 is near its 26-week average of 34.

CBOE Volatility Index (VIX) has rallied to a small gain, after being off 0.56 earlier today. VIX December 15 puts and December 16 calls are active on total option volume of 258K contacts at the CBOE.

S&P 100 Options (OEX) is off 2.40 to 639.73, ignoring “core” durable goods orders and a reading on consumer confidence rose. OEX December 595 and 605 puts are active on 4,900 contracts.