Blogging Options: CBOE Mid-day Update 2.18.14

Volatility as an asset class

Coca-Cola (KO) is recently down $1.36 to $27.58 on less than expected Q4 revenue on a profit decline. March call option implied volatility is at 16, May and August is at 15; compared to its 26-week average of 16.

Netflix (NFLX) is recently up $2.48 to $439.52, a  new record high, on the start of the second season of House of Cards.  Overall option implied volatility of 37 is below its 26-week average of 47.

Medtronic (MDT) is recently down 96c to $55.93 after the medical device manufacturer narrowed its FY14 EPS view to $3.81-$3.83 from $3.80-$3.85. March and May call option implied volatility is at 17; compared to its 26-week average of 20.

Active options @ CBOE:  AAPL TWTR KO ZNGA AMZN MGM C TSLA NFLX VZ

Options with increasing volume @ CBOE: HUM GGP JCP NS PNRA ADBE AUXL CRM HES

CBOE DJIA BuyWrite Index (BXD) recently up 4c to 255.63 compared to its 50-day moving average of 252.61. cboe.com/micro/bxd/

CBOE Volatility Index (VIX) recently up 39cc to 13.96. VIX February 14, 15 and 17 calls are active at CBOE on 504K contracts.  cboe.com/VIX

iPath S&P 500 VIX Short-Term Futures (VXX) recently down 9c to 41.86.

S&P 100 Options (OEX) recently up 2c to $812.62 into the release of FOMC Minutes on Wednesday that will be examined for signs of policymaker caution with respect to QE.