Blogging Options: CBOE Mid-day Update 10.29.13

Volatility as an asset class

Cummins (CMI) is recently down $11.70 to $123.21 after the supplier of engines for heavy-duty trucks reported weak Q3 results and a guidance shortfall. December and January call option implied volatility of 22 is below its 26-week average of 26.

Aetna (AET) is recently down $1 to $60.78 on weak Q3 EPS and muted 2014 guidance. December and January call option implied volatility of 21 is below its 26-week average of 24.

DineEquity (DIN) is recently up $8.30 to $79.80 on the company saying IHOP’s Q3 domestic SSS were up 3.6%. December call option implied volatility is at 17, March is at 21; below its 26-week average of 27.

IBM (IBM) is recently up $3.59 to $180.94 after authorizing an additional $15B stock repurchase plan. December and January call option implied volatility is at 14, April is at 16; below its 26-week average of 19.

VIX methodology for IBM (VXIBM) is recent up 1.2% to 17.16 www.cboe.com/VXIBM

Active options at @ CBOE: AAPL FB SCHW TSLA NQ NFLX MRK BP CIE BIDU

CBOE S&P 500 BuyWrite Index (BXM) is recently up $1.54 to $989.82, above its 50-day moving average of 963.71. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) is recently up 47c to 247.20, above its 50-day moving average of 242.95. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is recently down 5c to 13.26. VIX November 16 and 20 calls are active on total option volume of 116K contacts at the CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently up 5c to 12.86.

S&P 100 Options (OEX) is recently up $3.84 to $789.08 as U.S. consumer spending rose in September.