Blogging Options: CBOE Mid-day Update 3.26.14

Volatility as an asset class

Shares of Francesca’s (FRAN) is recently down $3.10 to $17.76 after the operator of retail boutiques reported Q4 results and guidance  below expectations.  April call option implied volatility is at 40, May is at 37, September is at 45; compared to its 26-week average of 52.

Rackspace (RAX) is recently down $1.28 to $32.58 after Google (GOOG) sharply cut the prices of its competing cloud computing services and products. April and May option implied volatility is at 41, June is at 47; compared to its 26-week average of 45.

Zynga (ZNGA) is recently down 16c to $4.68 after rival King Digital’s (KING) IPO opened below pricing of $22.50. April call option implied volatility is at 64, May is at 67, June is at 65, September is at 60; compared to its 26-week average of 57.

Actives @ CBOE:  AAPL C WLT TSLA FB TWTR NFLX GOOG GILD

Options with increasing volume @ CBOE: NSR DGX AGNC DOW JCP EMC EXC

CBOE S&P 500 Short-Term Volatility Index (VXST) down 22c to 13.66, compared to its 10-day moving average of 15.46. VXST is a market-based gauge of expectations of 9-day volatility cboe.com/vxst

CBOE DJIA BuyWrite Index (BXD) up 36c to 258.22, compared to its 50-day moving average of 254.60. cboe.com/micro/bxd/

CBOE Volatility Index (VIX) down 2c to 14 VIX April 15 call and puts are active at CBOE on 296K contracts cboe.com/VIX

iPath S&P 500 VIX Short-Term Futures (VXX) recently down 35c to 43.46.

S&P 100 Options (OEX) recently up 2.64 to $828.82 as after the Commerce Department said orders for durable goods increased 2.2%, ending two straight months of declines.