Blogging Options: CBOE Morning Update

Volatility as an asset class

Texas Instruments (TXN) is up $1.37 to $33.80 after the chip maker announced a 33% dividend increase and boosted its buyback program by $5B. Overall option implied volatility of 23 is below its 26-week average of 26.

Hewlett-Packard (HPQ) is higher by $1.50 to $18.60 on Q1 revenue beat estimates and positive sales guidance. UBS raised its rating on HPQ from Sell to Neutral. Over all option implied volatility of 46 is above its 26-week average of 38.

AIG (AIG) has gained $1.56 to $38.84 on better than expected Q4 results. Overall option implied volatility of 30 is near its 26-week average.

Newmont Mining (NEM) is up $0.74 to $41.30 as the gold-miner reported better than expected Q4 results. Overall option implied volatility of 29 is near its 26-week average.

CBOE S&P 500 BuyWrite Index (BXM) closed at $918.48; above its 50-day moving average of 915.25. www.cboe.com/BXM

Calls with increasing volume Thursday at CBOE:

HSH 7/20/2013 34 25K contracts
SPY 2/22/2013 151 19K
XRT 3/16/2013 69 18K
AIG 5/18/2013 42 11K
AAPL 2/22/2013 450 10K
BAC 3/16/2013 12 9K
MPEL 4/20/2013 22 7K

 

CBOE Volatility Index (VIX) closed at 15.22, above its 10-day moving average of 13.24, and its 50-day moving average of 14.69.

S&P up 5 points, DJIA adds 44 points in early trading on positive economic data from Europe and better than expected results from Hewlett-Packard. Retailers a little soft thid morning.

 
VIX Futures with 3rd highest volume yesterday.