Blogging Options: CBOE Mid-day Update 7.16.13

Volatility as an asset class

Tesla Motors (TSLA) is recently down $12.54 to $114.60 after a Goldman Sachs analyst warned this morning that the company may be priced for perfection.  August call option implied volatility is at 79, September is at 66; above its 26-week average of 52.

Bally Technologies (BYI) is recently up $4.47 to $65.38 after announcing the purchase of SHFL Entertainment (SHFL) for $1.3B. August call option implied volatility is at 25, October and January is at 20; compared to its 26-week average of 24.

General Motors (GM) is recently down 60c to $35.90 on 1H global vehicle sales rise almost 4% and cautious Goldman Sachs tone on the auto-sector. Overall option implied volatility of 27 is near its 26-week average of 28.

Charles Schwab (SCHW) is recently down 85c to $20.87 falls after the company missed earnings expectations by a penny when they reported earlier this morning. Overall option implied volatility of 29 is above its 26-week average of 25.

Actives:  AAPL C BAC VZ TSLA BIDU NFLX ABX DELL KO GS

CBOE Volatility Index (VIX) is recently up 50c to 14.29. VIX July 15 calls and puts are active on total option volume of 249K contacts at the CBOE.

S&P 100 Options (OEX) is recently down $2.76 to $751.26 as investors digested data on inflation, industrial production and homebuilder confidence.