Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Toronto-Dominion Bank (TD) is recently down $1.49 to $81.73 after agreeing to purchase U.S. asset manager Epoch Holding Corp (EPHC) for $688M. TD January call option implied volatility is at 15, April is at 14; below its 26-week average of 18.

Smithfield Foods (SFD) is recently up 39c to $23.29 after reporting Q2 EPS 61c, consensus 55c. December call option implied volatility is at 31, January is at 26, April is at 30; compared to 26-week average of 35.

MGM Resorts (MGM) is recently up 84c to $10.60 after unveiling a $3.1B note offering and investor hopes for internet gambling. January call option implied volatility is at 32, March is at 36; compared to its 26-week average of 40.

Akamai (AKAM) is recently up $3.10 to $38.60 after announcing a partnership with AT&T (T). December call option implied volatility is at 32, January is at 33, February is at 44; compared to its 26-week average of 42.

CBOE Volatility Index (VIX) is recently down 7c to 16.39. VIX January 21 and 25 calls are active on total option volume of 138K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 70c to $642.80 at mid-day into the release of the November employment report on Friday.