Blogging Options: CBOE Mid-day Update 2.27.14

Volatility as an asset class

Kohl’s (KSS) is recently up $1.66 to $56.10 on Q4 earnings decreasing 12%, but in line with guidance.  March weekly call option implied volatility is at 24, April is at 22, July is at 21; compared to its 26-week average of 25.

Catamaran (CTRX) is recently down $6.41 to $45.39 after the provider of pharmacy benefit management services released a lower than expected fiscal 2014 profit outlook. March call option implied volatility is at 31, April is at 30, July is at 29; compared to its 26-week average of 32.

Best Buy (BBY) is recently up on better than expected Q4 results. March weekly call option implied volatility is at 38, April is at 36, June is at 39; compared to its 26-week average of 42.

Actives @ CBOE:  AAPL TSLA VZ SUNE BIDU PBR CMCS PBR JCP C FSLR

Options with increasing volume @ CBOE: CBL AXL CTRX ZU CHS SONC SFY CY EXXI

CBOE DJIA Volatility Index (VXD) down 24c to 13.46, compared to its 10-day moving average of 13.86. Cboe.com/VXD

CBOE DJIA BuyWrite Index (BXD) up 33c to 256.71, compared to its 50-day moving average of 253.42. cboe.com/micro/bxd/

CBOE Volatility Index (VIX) recently down 18c to 14.17. VIX March and April 18 calls are active at CBOE on 161K contracts.  Cboe.com/VIX

iPath S&P 500 VIX Short-Term Futures (VXX) recently up 9c to 43.30.

S&P 100 Options (OEX) recently up $1.90 to $812.92 as Janet Yellen’s testimony revealed no fresh insight on the FOMC’s QE taper. She reiterated it would take a “significant” change in the outlook for policymakers to considering dialing back asset purchases.