Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Wal-Mart (WMT) is down $1.86 to $74.55 after lowering its fiscal 2013 EPS guidance to $5.10-$5.30 from $5.20-$5.40 and cutting its forecast for net sales growth to 2%-3% from it prior view of 5%-6%. September and October call option implied volatility is at 13, December is at 14; compared to its 26-week average of 16.

JDSU (JDSU) is off $0.66 to $13.57 after proposing a $575M senior convertible note offering.  September call option implied volatility is at 40, December is at 39; compared to its 26-week average of 42.

Kohl’s (KSS) is up $2.26 to $53.09 after the department-store chain reported inline Q2 results on 0.9% same-store-sales-growth. September call option implied volatility is at 21, October is at 20, January is at 19; compare to its 26-week average of 26.

Estee Lauder Cos. (EL) is higher by $3.41 to $68.53 after the beauty products company reported Q4 earnings increased 84%. August call option implied volatility is at 20, October is at 21, January is at 22; compare to its 26-week average of 27.

Actives:  AAPL C WMT TSLA C GOOG ONXX MNKD BAC ABX WMT

CBOE S&P 500 BuyWrite Index (BXM) -1% to 956.16, below its 10-day MA of 964.99: www.cboe.com/BXM

CBOE Volatility Index (VIX) is recently up 1.04 to 14.08. VIX September 21, 22, 25 and 30 calls are active on total option volume of 614K contacts at the CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) up 1.4% to 14.60.

S&P 100 Options (OEX) is down $9.00 to $745.94 after disappointing forward-looking commentary from Dow components Wal-Mart and Cisco (CSCO), economic data and continued unrest in Egypt.  DJIA is off over 200 points, NASDAQ lower by 55 points. GLD up 1.85% and Cash VIX was at 14.44, up 1.40.

Option activity is active this morning.  The CBOE has traded slightly less that 5 million of the 15 million US volume.  SPX showed 626 k, VIX with 619k.  ETF leaders included SPY with 1.87 m contracts, IWM with 455k ans QQQ at 360k.  AAPL logged 325k contracts and CSCO showed 253k mid-day.