Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Sony Corporation (SNE) is recently up 62c to $12.53 on deal to sell its US. headquarters at 550 Madison Avenue building for $1.1B. Overall option implied volatility of 34 is below its 26-week average of 38 as shares trade near a four-month high.

Capital One (COF) is recently down $5.08 to $56.50 on earnings and revenue miss on higher loan-loss provisions and operating expenses. February call option implied volatility is at 22, March is at 21, June is at 23; below its 26-week average of 28.

Research in Motion (RIMM) is recently up 86c to $15.77 after Jefferies raised its rating to Buy from Hold and its price target to $19.50 into the BB10 release this spring. Overall option implied volatility of 73 is above its 26-week average of 67.

CBOE Volatility Index (VIX) is recently down 4.3% to 12.99. VIX February 20 and 24 calls are active on total option volume of 667K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 0.3% to $667.60 at midday after earnings and economic data did little to move investors to purchase stocks.