Blogging Options: CBOE Mid-day Update 7.17.13

Volatility as an asset class

Abbott (ABT) is recently up 14c to $35.84 after reporting a Q2 profit decrease of 72% after spinning off its AbbVie (ABVV) specialty pharmaceuticals business. August option implied volatility is at 19, November is at 17; compared to its 26-week average of 18.

St. Jude Medical (STJ) is recently up $3.30 to $51.77 after the medical device manufacturer reported better than expected Q2 results. August call option implied volatility is at 25, October is at 23; compared to its 26-week average of 28.

United Rental (URI) is recently up $4.15 to $55.15 after the rental equipment company reported a better than expected Q2 results. August, September and January call option implied volatility of 35.

Textron (TXT) is recently down 26c to $27.48 after reporting Q2 earnings fell 40% on weak delivery of Cessna jets. August, September and December call option implied volatility of 24 is below its 26-week average of 34.

Actives:  AAPL C BAC VZ TSLA PBR DELL LNG ABX AMT

CBOE Volatility Index (VIX) is recently down 45c to 13.79. VIX August 19, 20 and 24 calls are active on total option volume of 399K contacts at the CBOE.

S&P 100 Options (OEX) is recently up $2.44 to $754.56 as comments from Fed Chairman Bernanke appeared to overshadow worse than expected housing data.