Blogging Options: CBOE Mid-day Update 8.7.13

Volatility as an asset class

WellCare (WCG) is recently up $6.05 to $66.62 after the managed-care service provider raised its full-year earnings and revenue guidance.  August call option implied volatility is at 33, September is at 36, December is at 36, January is at 36; compared to its 26-week average of 35.

AOL (AOL) is recently up 60c to $36.77 after reporting Q2 earnings and a deal to acquire Adap.tv for $405M in cash and stock. August call option implied volatility is at 37, September is at 45, October is at 56, January is at 70; compared to its 26-week average of 45.

Polo Ralph Lauren (RL) is recently down $12.52 to $177 after the high end retailer reported Q1 earnings fell 6%.  August and September call option implied volatility is at 21, October is at 20, January is at 22; compared to its 26-week average of 25.

Marathon Oil (MRO) is recently down $1.70 to $35.19 after the energy company reported Q2 revenue below expectations.  August, September and January call option implied volatility is at 23; compared to its 26-week average of 25.

Actives:  AAPL FSLR BAC C VOD ZNGA POT GOOG TSLA FB

CBOE Volatility Index (VIX) is recently up 76c to 13.47. VIX August 14, 16 and 18 calls are active on total option volume of 417K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 3.38 to $756.70 on concerns the Federal Reserve will cut back on stimulus by reducing the purchase of bonds.