Blogging Options: CBOE Mid-day Update 10.22.13

Volatility as an asset class

Netflix’s (NFLX) is recently down $15.32 to $339.72 after a number of analysts suggested that the stock had become too expensive after reporting stronger than expected results, and the stock opened nearly 10% higher this morning.  October weekly call option implied volatility is at 77, below a level of 150, November weekly is at 48, December is at 45, January is at 44 and March is at 43; compared to its 26-week average of 49.

Whirlpool (WHR) is recently up $14.76 to $145.64 after the maker of appliances reported a Q3 profit more than doubled. November call option implied volatility is at 31, December is at 30, January is at 29; compared to its 26-week average of 32.

Travelers (TRV) is recently up 33c to $87.08 after one of the largest insurers in U.S. reported Q3 adjusted EPS $2.35, compared to consensus $2.07. November and January call option implied volatility is at 14, April is at 15; compared its 26-week average of 18.

Harley-Davidson (HOG) is recently down $1.34 to $64.22 after reporting Q3 earnings increase of 21% and expects to ship 45,000-50,000 motorcycles in Q4. November call option implied volatility is at 22, January and February is at 23; compared to its 26-week average of 27.

Lockheed Martin (LMT) is recently up $3.43 to $128.76 after the defense contractor reported Q3 profit of 20%. November and January call option implied volatility is at 17, January and March is at 16; compared to its 26-week average of 18.

Active options at CBOE; FB AAPL TSLA NFLX FSLR VMW ABX RSH VLO GOOG

CBOE S&P 500 BuyWrite Index (BXM) is recently up $1.16 to $985.16, above its 50-day moving average of 960.73. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) is recently down 27c to 245.59, above its 50-day moving average of 242.70. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is recently up 35c to 13.51. VIX November 16, 21 calls and November 13, 14 are active on total option volume of 201K contacts at the CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently down 8c to 12.88.

S&P 100 Options (OEX) is recently up $3 to $779.34 after the delayed jobs report for September showed employers added a 148K jobs in the month and the unemployment rate edged further down toward 7%.