Blogging Options: CBOE Mid-day Update 10.23.13

Volatility as an asset class

Caterpillar (CAT) is recently down $5.53 to $83.65 after Q3 earnings fell 44%. November call option implied volatility is at 21, December is at 17, January is at 19; compared to its 26-week average of 22.

Boeing (BA) is recently up $4.13 to $126.63 on Q3 earnings rising 12%. November call option implied volatility is at 21, December is at 22, January is at 19 and May is at 20; compared to its 26-week average of 24.

Motorola Solutions (MSI) is recently up $1.76 to $62.20 after reports Q3 earnings rose 49%. November call option implied volatility is at 22, December and April is at 20; compared to its 26-week average of 23.

Brinker (EAT) is recently down $1.90 to $40.29 after the owner of Chili’s Grill & Bar reported flat Q1 revenue and weak same store sales. November call option implied volatility is at 22, January is at 21; compared to its 26-week average of 27.

Altera (ALTR) is recently down $4.62 to $32.67 after the chip maker reported weak sales. November call option implied volatility is at 33, December is at 27, January is at 22; compared to its 26-week average of 25.

Active options into results @ CBOE: AAPL TSLA NFLX GILD AA FB SIRI C LNG GOOG

CBOE S&P 500 BuyWrite Index (BXM) is recently down $2.68 to $983.16, above its 50-day moving average of 961.05. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) is recently down 64c to 245.21, above its 50-day moving average of 242.66. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is recently up 65c to 13.98. VIX November 17 and 24 calls are active on total option volume of 194K contacts at the CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently up 31c to 13.32.

S&P 100 Options (OEX) is recently up $4.82 to $775.52 after taking their lead from overseas markets, which traded lower on concerns of the possibility of a shift in monetary policy in China.