Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Best Buy (BBY) is recently up $1.86 to $14.05 on expectations company founder Schulze will make a bid for the company this week, Star Tribune reports. December call option implied volatility is at 109, January is at 82, March is at 65; compared to its 26-week average of 58.

Proshares Ultra Short 20 Year Treasury ETF (TBT) is recently down 15c to $62.22 a day after the Fed kept funds rates unchanged at 0%-0.25%. December call option implied volatility is at 22, January is at 23, March is at 25; below its 26-week average of 31.

CVS Caremark (CVS) is recently up $1.10 to $48.64 on a better than expected 2013 profit outlook. December call option implied volatility is at 19, January and February is at 16; compared to its 26-week average of 21 as shares trade at a record high.

CBOE Volatility Index (VIX) is recently up 28c to 16.23. VIX December 15 and 16 puts are active on total option volume of 222K contacts at the CBOE.

S&P 100 Options (OEX) is recently down $3.20 to $647.30 in mid-day trading a day after the Fed kept funds rates unchanged at 0%-0.25%.