Blogging Options: CBOE Mid-day Update 8.2.13

Volatility as an asset class

Toyota (TM) is recently up $7.05 to $133.23 after raising FY14 net income outlook to 1.48T yen from 1.37T yen. September call option implied volatility is at 22, October is at 21; compared to its 26-week average of 24.

Host Hotels (HST) is recently up 36c to $18.52 after the real-estate investment trust reported a Q2 profit increase of 45%. September call option implied volatility is at 19, October is at 20, January is at 21; compared to its 26-week average of 24.

Eaton (ETN) is recently down $3.97 to $65.92 after the diversified power management sees Q3 EPS $1.05-$1.15, compared to consensus $1.22. August, September and October call option implied volatility of 20 is below its 26-week average of 24.

Viacom (VIA) is recently up $4.21 to $79.21 on improved Q3 domestic advertising revenue increasing 6% and a profit increase of 20%. September call option implied volatility is at 22, October and January is at 21; near its 26-week average.

Brinker (EAT) is recently up $2.67 to $43.64 after the operator of Chili’s Grill & Bar reports Q4 adjusted EPS 77c, consensus 74c. September and October call option implied volatility is at 24, January is at 23; compared to its 26-week average of 28.

Chevron (CVX) is recently down $2.87 to $123.57 after reporting Q2 EPS $2.77, compared to consensus $2.96. September call option implied volatility is at 10, October is at 13, January is at 14; compared to its 26-week average of 16.

Actives: AAPL LNKD DELL HPQ FB C GOOG TSLA AMZN BAC

CBOE Volatility Index (VIX) is recently down 87c to 12.07. VIX August 15 and 19 calls are active on total option volume of 256K contacts at the CBOE.

S&P 100 Options (OEX) is recently up 2c to $763.76 on July U.S. non-farm payrolls rise 162K, unemployment rate drops to 7.4%