Blogging Options: CBOE Mid-day Update 7.10.13

Volatility as an asset class

Hewlett-Packard (HPQ) is recently up 44c to $25.91 after Citigroup bumped its recommendation up to Buy from Sell, with a $32 price target.  July and August call option implied volatility is at 30, September is at 34; compared to its 26-week average of 33.

ADTRAN (ADTN) is recently down $1.50 to $23.73 after the networking and communications-equipment company reported a double-digit percentage decrease in revenue. July and August call option implied volatility is at 34, November is at 37; compared to its 26-week average of 41.

Home Depot (HD) is recently down 61c to $79.09 on the retailer seeing 2013-2015 annual projected sales growth of 3.5%. New store growth in 2013-2015 will contribute to 50 bps of annual growth.  July and August call option implied volatility is at 34, November is at 37; compared to its 26-week average of 41.

Actives:  AAPL PBR VXX BAC NFLX C HPQ GOOG MCP ARNA

CBOE Energy Sector ETF Volatility Index (VXXLE) +1.6% to 18.34, below its 50-day moving average of 20.29; WTI crude oil is recently trading above 105;  $XLE -0.6% to $80.80 www.cboe.com/VXXLE

CBOE Volatility Index (VIX) is recently up 17c to 14.53. VIX July 17 and 22 calls are active on total option volume of 144K contacts at the CBOE.

S&P 100 Options (OEX) is recently down $1.38 to $740.74 into the release of the June Fed meeting minutes.