Blogging Options: CBOE Mid-Day Update 4.30.13

Volatility as an asset class:

Best Buy (BBY) is up $2.05 to $26.26 after selling its stake in a European business to Carphone Warehouse for $775M. Call option implied volatility is at 47, June is at 54, July is at 48; compared to its 26-week average of 56.

Sirius XM Radio (SIRI) is higher by $0.12 to $3.19 on Q1 net sales up 15% on subscriber increasing 9.2% to 24.4M. Overall option implied volatility of 41 is near its 26-week average of 43.

Starwood Hotels and Resorts Worldwide (HOT) is up $2.16 to $64.62 after the hotel company reported Q1 earnings rose 66% on lower costs as revenue fell 10%.  May, June and August call option implied volatility of 20 is below its 26-week average of 27.

IBM (IBM) has moved higher by $1.30 to $200.47 on raising its dividend 12% and increasing its buyback plan by $5B. Overall option implied volatility of 17 is near its 26-week average.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is unchanged at 1291.30, above its 10-day moving average of 1279.79 and its 50-day moving average of 1264.69.


CBOE Volatility Index (VIX) is recently up 0.08 to 13.79. VIX May 16, 19, 25 and 26 calls are active on total option volume of 308K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 4c to $717.44 on mixed corporate earnings reports.

Chicago PMI lowest print in 3 1/2 years. Case-Shiller this morning said housing prices in many markets moving higher, but home-ownership fell to 18-year low.  Mixed economic numbers so far today.