Blogging Options: CBOE Mid-day Update 6.3.13

Volatility as an asset class

Intel (INTC) is recently up $1.06 to $25.33 after FBR Capital upgraded the stock to Outperform and bumped its price target to $28 from $23.  June 25 and 26 are active on total call volume total volume of 41K contracts at the CBOE.  June call option implied volatility is at 30, July is at 25, August is at 24, October is at 22; above its 26-week average of 23.

Merck (MRK) is recently up $2.07 to $48.78 on its experimental drug shrinking tumors in a number of skin-cancer patients. June call option implied volatility is at 23, July is at 19, August is at 20 and October is at 17; compared to its 26-week average of 18.

Bristol-Myers (BMY) is recently up $2.56 to $48.56 after the company presented positive clinical results at the American Society of Clinical Oncology medical meeting. June weekly call option implied volatility is at 38, June is at 27, July is at 25, September is at 21; compared to its 26-week average of 17.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently down $3.10 to 1285, below its 10-day moving average of 1300 and its 50-day moving average of 1288.60. www.cboe.com/BXY

Actives:  AAPL C TSLA NFLX GOOG MNKD BMY BAC MRK

CBOE Volatility Index (VIX) is recently up 1.04 to 17.34. VIX June 16 and 25 calls are active on total option volume of 418K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 76c to $743.90 on May manufacturing activity pulled back to a four-year low.