Blogging Options: CBOE Mid-day Update 5.28.13

Volatility as an asset class

Canadian Solar (CSIQ) is recently up $1.63 to $10.24 after the solar-module manufacturer backed its full-year shipment guidance. June call option implied volatility is at 95, July is at 94, October is at 84; compared to its 26-week average of 77.

Hertz (HTZ) is recently up 96c to $26.15 on the stock could see a jump up to $70 in the next two years due to growth opportunities, better profits, and by taking advantage of firming prices, Barron’s contends. Overall option implied volatility of 33 is near its 26-week average of 35.

Netflix (NFLX) is recently down $12.14 to $216.72 as the video-by-demand company trades below its 10-day moving average of $233. Overall option implied volatility of 45 is below its 26-week average of 56.

SPDR Homebuilder (XHB) is recently up 22c to $31.97as home prices increased by most in seven-years.  June call option implied volatility is at 23, July and September is at 22; below its 26-week average of 25.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently up 10.80 to 1310.45, above its 10-day moving average of 1304.50 and above its 50-day moving average of 1286.29. www.cboe.com/BXY

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CBOE Volatility Index (VIX) is recently down 10c to 13.89. VIX June 19 and 23 calls are active on total option volume of 221K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 6.86 to $739.34 as home prices increased by most in seven-years and European central bank comments.