Blogging Options: CBOE Mid-day Update

Volatility as an asset class

McGraw-Hill (MHP) is recently up $1.28 to $55.55 after announcing a special dividend of $2.50 per share. December call option implied volatility is at 21, January is at is 19, February is at 21; compared to its 26-week average.

Cisco (CSCO) is recently down 3c to $19.45 after the maker of network equipment expects to deliver long-term growth in the 5%-7% range. December call option implied volatility is at 22, January is at 19, February is at 25; below its 26-week average of 29.

FedEx (FDX) is recently down 12c to $89.14 into the company preparing for a record-breaking day on Monday, December 10, when 19M packages are expected to move through the FedEx networks. December call option implied volatility is at 25, January is at 21; compared to its 26-week average of 24.

CBOE Volatility Index (VIX) is recently up 7c to 16.65. VIX December 16 and 23 calls are active on total option volume of 149K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 84c to $643.60 on a muted investor response to U.S. November unemployment decreasing to 7.7%.