Blogging Options: CBOE Mid-day Update 12.19.13

Volatility as an asset class

Caterpillar (CAT) is recently down 72c to $87.43 after disclosing that overall retail sales of machines were down 12% in the 3-month rolling period ending in November compared with the same months of the prior year. December weekly and January call option implied volatility is at 14, February is at 18, May is at 19; compared to its 26-week average of 21.

KB Home (KBH) is recently down 88c to $16.67 after the homebuilder reported Q4 EPS 31c, consensus 45c. January call option implied volatility is at 38, April is at 40; compared to its 26-week average of 48.

Target (TGT) is recently down $1.38 to $62.17 after the retailer reported unauthorized access to payment card data for 40M credit and debit card accounts. January and April call option implied volatility is at 17; compared to its 26-week average of 18.

Facebook (FB) is recently down $1.31 to $54.27 after the company filed to sell 70M Class A shares of common stock, 41.35M of which are being sold by CEO Mark Zuckerburg. January call option implied volatility is at 41, February is at 47, March is at 46; compared to its 26-week average of 40.

Active options @ CBOE:  AAPL DOW BAC GOOG FB TSLA FB BMY C X

CBOE DJIA BuyWrite Index (BXD) is recently down 43c to 253.37 above its 50-day moving average of 248.16: www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) is recently down 17c to 13.63. VIX January 15, 16, 17, 18, 19, 23 & 25 calls are active on 336K contracts at CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently up 40c to 44.28.

S&P 100 Options (OEX) is recently down $1.06 to $806.06 a day after stocks rallied sharply on the Fed announcing plans to trim its aggressive bond-buying program.