CBOE Mid-Day Update 1.7.14

Volatility as an asset class

Netflix (NFLX) is recently down $19.11 to $340.67 on Morgan Stanley’s downgrade to Underweight from Equal Weight after being up over 300% in 2013. January call option implied volatility is at 63, February is at 51, March is at 45; compared to its 26-week average of 49.

Linkedin (LNKD) is recently up $1.18 to $205.10 after being downgraded to Neutral from Buy at BofA/Merrill.  January call option implied volatility of 42, February is at 50, March is at 46; compared to its 26-week average of 45.

Twitter (TWTR) is recently down $2.58 to $63.70 into Dick Costolo, CEO, keynote address at International CES 2014 on January 8. January weekly call option implied volatility is at 97, January is at 88, February is at 94, March is at 80, June is at 68; compared to its 6-week average of 57.

Active options at CBOE: AAPL FSLR MU C CMCSA MA INTC FCX

Options with increasing volume at CBOE: FSLR MA QLIK YOKU SD DANG WMB NLY

CBOE DJIA Volatility Index (VXD) down 45c to 12.33, below its 50-day moving average of 12.77. cboe.com/VXD

CBOE Volatility Index (VIX) is recently down 56c to 12.99. VIX January 14, 15, Feb 18, & 40 calls are active at CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently down 96c to 41.77.

S&P 100 Options (OEX) is recently up 4.40 to $819.48 after falling for three straight days prior to today’s rebound.