Blogging Options: Mid-day Update 8.16.13

Volatility as an asset class

Pandora (P) is recently up $1.32 to $21.17 after Goldman Sachs upgraded the music internet music retailer to Buy with a $27 price target citing accelerating mobile ads and subscription revenue growth. September call option implied volatility is at 75, December is at 60; compared to its 26-week average of 57.

General Mills (GIS) is recently down $1.38 to $49.16 after being downgraded to Underperform from Hold at Jefferies. September call option implied volatility is at 17, October is at 16, January is at 15; compared to its 26-week average of 16.

Proshares UltraShort Barc 20 Year Treasury ETF (TBT) is recently up 74c to $81 as Treasury yields increase. Overall option implied volatility of 31 is near its 26-week average of 30.

CBOE S&P 500 2% OTM BuyWrite (BXY) at 1282.25. www.cboe.com/BXY

Actives: AAPL C GOOG TSLA ABX X NFLX MNKD ONXX

CBOE Volatility Index (VIX) is recently down 58c to 14.15. VIX September 20 and 23 calls are active on total option volume of 308K contacts at the CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) down 2.3% to 14.92.

S&P 100 Options (OEX) is recently down $1.38 to $743.18 on August U.S. consumer confidence pulling back and residential construction rose less than expected.