Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Target (TGT) is recently down 54c to $63.51 after reporting a Q4 profit of $961M, compared to $981M a year ago. March call option implied volatility is at 18, April and July is at 16; compared to its 26-week average of 19.

Joy Global (JOY) is recently up $3.36 to $63.35 after the mining equipment company a Q1 beat, but didn’t raise its FY view. March call option implied volatility is at 34, April and July is at 33; compared to its 26-week average of 41.

Live Nation Entertainment (LYV) is recently up 31c to $10.42 after the concert promotion company reported better than expected Q4 results. March and April call option implied volatility is at 40, July is at 35; compared to its 26-week average of 44.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently up 12.30 to 1230.85, below its 10-day moving average of 1229.52. www.cboe.com/BXY

Active options at CBOE: AAPL FSLR HPQ FSLR ZNGA C ENDP SD GOOG HPQ NFLX.

CBOE Volatility Index (VIX) is recently down 2.07 to 14.80. VIX March 17 and 20 calls are active on total option volume of 392K contacts at the CBOE.

S&P 100 Options (OEX) is recently up $6.16 to $682.04 as Federal Reserve Chairman Ben Bernanke reaffirmed his support of the Fed’s stimulus.