Blogging Options: CBOE Mid-day Update 10.9.13

Volatility as an asset class

Hewlett-Packard (HPQ) is recently up $1.51 to $22.30 on the enterprise company seeing FY14 momentum to accelerating into FY15. October weekly call option implied volatility is at 70, October is at 32, November is at 36, December is at 39, January is at 37; compared to its 26-week average of 34.

Men’s Wearhouse (MW) is recently up $9.89 to $45.08 after Jos. A. Bank (JOSB) proposed to acquire the company for $48 per share in cash, representing a total equity value of approximately $2.3B. October call option implied volatility is at 52, November is at 41, February is at 27; compared to its 26-week average of 37.

Family Dollar (FDO) is recently down $1.69 to $67.77 after the company’s first quarter and fiscal 2014 guidance fell shy of analysts’ estimates. October call option implied volatility is at 35, November is at 33, January is at 30; compared to its 26-week average of 30.

Nike (NKE) is recently up 28c to $70.59 on the company seeing $30B revenue by end of FY15 and revenue of $36B by end of FY17. October call option implied volatility is at 24, November and January is at 23; compared to its 26-week average of 24.

Nasdaq-100 Index Options (NDX) -0.8% to 3127.40, below 50-day MA of 31.52.41 www.cboe.com/NDX

Active options at CBOE; FB AAPL TSLA NFLX CVX HPQ C GOOG AA

CBOE S&P 500 BuyWrite Index (BXM) is recently down $1.58 to $939.74, below its 50-day moving average of 958.83. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) is recently down 2c to 235.33, below its 50-day moving average of 243.38. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is recently up 27c to 20.61. VIX October 19, 20, 23, 26, 30 and November 23 calls are active on total option volume of 662K contacts at the CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently up 9c to 17.05

S&P 100 Options (OEX) is recently down 8c to $736.20 after President Barack Obama nominated Janet Yellen to head the Federal Reserve.