Blogging Options: CBOE Mid-day Update 12.5.13

Volatility as an asset class

J.C. Penney (JCP) is recently down 78c to $8.89 after Fitch said free cash flow could remain materially negative in 2014. JCP 12/6/13 call option implied volatility is at 98, December and January is at 70, February is at 77; above its 26-week average of 70.

Titan Machinery (TITN) is recently down $1.19 to $14.78 after Q3 results missed analysts’ consensus estimate and the company slashed its fiscal 2014 earnings outlook.  December call option implied volatility is at 38, January is at 34, March is at 38; compared to its 26-week average of 40.

Apple (AAPL) is recently up $7.16 to $572.10 after The Wall Street Journal reported last night that the tech giant had reached a deal to sell its iPhones to the world’s largest mobile carrier by users, China Mobile (CHL). AAPL 12/6/13 call option implied volatility is at 29, December is at 26, January is at 25, February is at 28; compared to its 26-week average of 28.

Options with increasing volume @ CBOE:  DG GES VMC LIFE ARRS MEI CHTR DLLR HSP

CBOE DJIA BuyWrite Index (BXD) is recently down 30c to 249.35 above its 50-day moving average of 245.96: www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is recently up 9c to 14.79. VIX December 14 and 15 calls are active on 72K contracts at CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently up 11c to 46.61.

S&P 100 Options (OEX) is recently down $2.18 to $798.92 weekly jobless claims came in below expectations, while Q3 annualized GDP came in well above the consensus forecast.