Blogging Options: CBOE Mid-Day Update 12.17.13

Volatility as an asset class

3M Company (MMM) is up $3.08 to $130.74 after increasing its dividend 35% to 85.5c per share and guided in-line for 2014. January call option implied volatility is at 17, April is at 16, July is at 15; compared to its 26-week average of 17.

MasterCard (MA) is up $3.28 to $800 after shares hit a new record high of $803.54. Overall option implied volatility of 24 is above its 26-week average of 22.

IBM (IBM) is down $2.14 to $175.72 as shares trade near a two-year low.  December call option implied volatility is at 19, February and April is at 18; compared to its 26-week average of 19.

Active options @ CBOE:  AAPL TWTR TSLA FB GOOG AMZN GDP LVS GDP SD BAC.  Over 500k VIX options trade by mid-day.

CBOE DJIA BuyWrite Index (BXD) is down 17c to 250.26 above its 50-day moving average of 247.45: www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is up 36c to 16.39. VIX December 15, 16, 17, 18 & 19 calls are active on 518K contracts at CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are up 91c to 48.35.

S&P 100 Options (OEX) is down $2.86 to $793.70 into the Fed’s open market committee meeting decision on Wednesday.