Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Hewlett-Packard (HPQ) is recently down 39c to $22.54 after the board of directors authorized a 10% increase in the amount of its regular quarterly dividend, to 14.52c per share. April call option implied volatility is at 29, May is at 30, June and August is at 31; below its 26-week average of 36.

KB Home (KBH) is recently up 27c to $21.83 after the home build reported Q1 EPS (16c) on revenue of $405.2M, compared to consensus $359.80M. The company delivered 1,485 homes, up 29% from Q1 2012, reflecting increases in three of its four homebuilding regions. April and July call option implied volatility is at 37, July is at 39 compared to its 26-week average of 44.

Ross Stores (ROST) is recently up 84c to $57.01 on the retailer seeing Q1 EPS $1.00-$1.04, compared to consensus $1.04. April and August call option implied volatility of 21 is below its 26-week average of 27.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently down 4.75 to 1265.35, above its 50-day moving average of 1233.33. www.cboe.com/BXY

Active options at CBOE: AAPL BAC RPRX C CLF STZ HPQ DELL NFLX

CBOE Volatility Index (VIX) is recently up .47 to 13.14. VIX April 18 and 22 calls are active on total option volume of 218K contacts at the CBOE.

S&P 100 Options (OEX) is recently down $3.16 to $697.44 as Oracle (ORCL) pulled down technology stocks.