Blogging Options: CBOE Mid-day Update 7.26.13

Volatility as an asset class

Activision Blizzard (ATVI) is recently up $2.08 to $17.26 after the game maker acquired from Vivendi (VIVHY) approximately 429M company shares in exchange for approximately $5.83B in cash, or $13.60 per share. August call overall option implied volatility is at 31, September is at 27, November is at 29, January is at 27; compared to its 26-week average of 32.

Flextronics (FLEX) is recently up 23c to $8.37 after the contract manufacturer reported better than expected Q1 results. August call option implied volatility is at 23, September is at 21, October is at 24; compared to its 26-week average of 29.

Cirrus Logic (CRUS) is recently down $2.71 to $17.61 after the chip maker reported less than expected Q1 and projected revenue.  August call option implied volatility is at 46, September is at 45, December is at 50; compared to its 26-week average of 55.

Briggs & Stratton (BGG) is recently down $1.17 to $20.08 after the small engine manufacturer warned its Q4 results are expected to come in at less than expected estimates. August, September and October call option implied volatility of 33 is near its 26-week average of 29.

Actives:  AAPL FB C AMZN ZNGA CLF GOOG EXPE

CBOE Volatility Index (VIX) is recently up 32c to 13.29. VIX August 15 and 30 calls are active on total option volume of 168K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 2.52 to $755.48 on mixed earning reports after markets traded at all-time highs earlier this week.