Blogging Options: CBOE Mid-day Update 1.9.14

Volatility as an asset class

Costco (COST) is recently up $3.85 to $117.89 after reporting Dec. comparable sales up 3%. January call option implied volatility is at 17, February is at 15, April is at 16; compared to its 26-week average of 18.

Pier 1 Imports (PIR) is recently down $2.82 to $20.50 after cutting its full-year guidance after the home-furnishing retailer reported lower than anticipated December sales. January, February and March option implied volatility of 26 is below its 26-week average of 32.

L Brands Inc. (LB) is recently down $2.64 to $57.55 after lowering its earnings guidance for Q4 on promotional activity leading to lower than expected merchandise margins. Overall option implied volatility of 26 is near its 26-week average.

United Continental (UAL) is recently up $3.40 to $44.41 on better than expected December unit revenue.  January call option implied volatility is at 38, February is at 42, March is at 40; compared to its 26-week average of 41.

Active options at CBOE: AAPL TWTR C SD LNG C BAC TSLA AA SVU

CBOE DJIA Volatility Index (VXD) up 21c to 12.48, near its 10-day moving average of 12.46. cboe.com/VXD

CBOE Volatility Index (VIX) is recently up 7c to 12.94. VIX January 15, calls & puts are active at CBOE.

iPath S&P 500 VIX Short-Term Futures (VXX) are recently down 12c to 41.63.

S&P 100 Options (OEX) is recently down 1.14 to $816.96 on lower weekly jobless claims and encouraging data from the Challenger job cuts report.