Blogging Options: CBOE Mid-Day Update 1.14.14

Volatility as an asset class

Intuitive Surgical (ISRG) is up $29 to $421 after the surgical robotics company said it expects revenue for Q4 of approximately $576M versus the consensus of $548.56M. The company expects revenue for FY13 to total approximately $2.265B versus the consensus of $2.24B. February call option implied volatility is at 35, April is at 33, July is at 31; compared to its 26-week average 33.

Wells Fargo (WFC) is up $0.09 to $45.65 after reporting Q4 EPS of $1.00, compared to consensus 98c. January call option implied volatility is at 21, February is at 13, March is at 14; compared to its 26-week average of 19.

GameStop (GME) is down $8.54 to $36.75 after lowering its FY13 EPS guidance. January call option implied volatility is at 51, February is at 39, April is at 41; compared to its 26-week average of 43.

Active options at CBOE: AAPL TWTR TSLA GOOG C MSFT

Option with increasing volume at CBOE: APC POT MGM EBAY AMD BYD LULU

CBOE DJIA Volatility Index (VXD) down 71c to 11.94, below its 10-day moving average of 13.13. cboe.com/VXD

CBOE Volatility Index (VIX) is down 1.00 to 12.28. VIX January 14 & 18 calls are active at CBOE on 552K contracts.

iPath S&P 500 VIX Short-Term Futures (VXX) are down 1.60 to 40.71.

S&P 100 Options (OEX) is up 6.92 to $815.86 having nearly reclaiming their steep Monday losses led by the NASDAQ comp, which is 1.6% higher.

Nasdaq-100 Index Tracking Stock (QQQ) is up $1.54 to $87.56. cboe.com/QQQ

CBOE Nasdaq-100 Volatility Index (VXN) -10.1% to 13.53, below its 50-day moving average of 14.71. cboe.com/VXN