Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Costco overall (COST) is recently up $4.60 to $101.10 after announcing a special cash dividend of $7.00 per share. Overall option implied volatility of 19 is near its 26-week average of 19.

American Eagle (AEO) is recently up $1.31 to $20.571 on a Q3 beat and raise. Overall option implied volatility of 40 is above its 26-week average of 36.

Knight Capital (KCG) is recently up 42c to $3.29 following Getco Holding offer to merge with the company. Overall option implied volatility of 49 is near its 26-week average of 47.

CBOE Volatility Index $VIX is recently down 46c to 15.04. VIX December 21 and December 25 calls are active on total option volume of 183K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 2.52 to $640.92 after President Obama expressed hoped to avoid the ‘Fiscal Cliff’.