Blogging Options: CBOE Afternoon Update 6.18.13

Volatility as an asset class

Dell (DELL) is up $0.03 to $13.44 on volume of 17mm shares, after the company said in a letter to shareholders its  $13.65/share offer is ‘superior to any alternative’. July call option implied volatility is at 14, August is at 12, November is at 15; compared to its 19-week average of 15.

Hormel Foods (HRL) is down $1.85 to $38.80 after the company reduced its fiscal 2013 earnings per share guidance on lower than expected results from its pork operations. July and September call option implied volatility is at 21; compared to its 26-week average of 20.

Fifth Third Bancorp (FITB) is up $0.06 to $18.34 after the diversified services company headquartered in Cincinnati raised its quarterly dividend 9% to $0.12 per share. June call option implied volatility is at 22, July is at 20, August is at 19; compared to its 26-week average of23.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently up $9.05 to 1305.85, above its 10-day moving average of 1289.64 and its 50-day moving average of 1292.40. www.cboe.com/BXY

Actives:  AAPL MRK MNKD PBR WLT GOOG PFE C GNW

CBOE Volatility Index (VIX) is off 0.04 to 16.76. VIX June 16 and 17 puts are active on total option volume of 328K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 4.78 to $742.36 as the FOMC began its two day meeting which concludes tomorrow afternoon.