Blogging Options: CBOE Mid-day Update 12.16.13

Volatility as an asset class

Exxon Mobil (XOM) is recently up $2.78 to $98.07 after Goldman Sachs upgraded the oil conglomerate to buy from Neutral based on an improved production profile, valuation, and defensive characteristics; its price target was raised to $109 from $96. Overall option implied volatility of 15 is at its 26-week average.

Netflix (NFLX) is recently down $2.87 to $366.10 after announcing “Better Call Saul,” the spin-off of “Breaking Bad,” will be available exclusively to streaming members in Europe and Latin America shortly after its airing in the U.S, beginning in 2014. Overall option implied volatility of 41 is below its 26-week average of 53.

Archer Daniel (ADM) is recently up 66c to $40.98 after increasing its dividend 26% to 24c and increasing its buy back 18M share by end 2014. December, January and March call option implied volatility of 32 is above its 26-week average of 28.

Pfizer (PFE) is recently up 1c to $30.26 after raising its quarterly dividend to 26c from 24c per share. December call option implied volatility is at 18, January and March is at 16; compared to its 26-week average of 18.


CBOE DJIA BuyWrite Index (BXD) is recently up $1.64 to 250.30 above its 50-day moving average of 247.20:

CBOE Volatility Index (VIX) is recently up 1c to 15.76. VIX December 15, 16 & 17 calls are active on 318K contracts at CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently down 6c to 47.32.

S&P 100 Options (OEX) is recently up $5.18 to $796.78 into the Fed’s open market committee meeting decision on December 18.