Blogging Options: CBOE Mid-day Update

Volatility as an asset class

BlackRock (BLK) is recently up $10.35 to $232.53 after the world’s largest money manager’s Q4 results beat expectations and the company increased its dividend. February and April call volatility of 15 is below its 26-week average of 22.

CBS (CBS) is recently up $3.63 to $41.58 after announcing plans to convert its U.S. outdoor advertising business to a REIT. February call option implied volatility is at 31, March is at 29; compared to its 26-week average of 30.

UnitedHealth (UNH) is recently up 29c to $53.95 after reporting inline Q4 and reaffirming 2013 outlook. February call option implied volatility is at 17, March is at 19, June is at 20; below its 26-week average of 26.

CBOE Gold ETF Volatility Index (GVZ) is recently up 5.3% to 15.28, above 10-day moving average of 14.09 and its 50-day moving average of 14.12. www.cboe.com/GVZ

CBOE Volatility Index (VIX) is recently down 1% to 13.29. VIX February 20 and 24 calls are active on total option volume of 440K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 0.5% to $669.96 at midday following a better than expected monthly report on housing and lower than expected weekly jobless claims.