Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Seagate Technology (STX) and Western Digital (WDC) are advancing after a Brean Murray analyst wrote that sales of hard disk drives appear to be trending in-line with expectations, while stronger than expected sales of more profitable devices could cause both companies to report better than expected results for their quarters ending in March. STX is recently up $1.05 to $25.78 with overall option implied volatility of 35 is below its 26-week average of 41. WDC is recently up $1.54 to $48.82 with overall option implied volatility of 36 is near its 26-week average of 38.

DuPont (DD) is recently down 32c to $48.30 and Monsanto (MON) is recently up $3.92 to $103.34 after announcing a series of technology licensing agreements that will expand the range of seed products they can offer farmers. DD overall option implied volatility is at 17, below its 26-week average of 19. MON overall option implied volatility of 23 is near its 26-week average of 24.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently up 6 to 1271.50, above its 10-day MA of 1266.69, above its 50-day moving average of 1237.13. www.cboe.com/BXY

Active options at CBOE: AAPL NFLX LVS C DELL HPQ BAC STX AMRN BBRY

CBOE Volatility Index (VIX) is recently down .71 to 13.03. VIX April 16 and 19 calls are active on total option volume of 306K contacts at the CBOE.

S&P 100 Options (OEX) is recently up $3.88 to $701.78 on domestic economic data, including better than expected reports on home prices and durable goods orders.