Blogging Options: CBOE Morning Update Wed 8/3

Volatility as an asset class
 
MasterCard (MA) is recently up 3% in pre-open trading following Q2 EPS $4.76 vs. consensus $4.22. Overall option implied volatility of 34 is above its 26-week average of 29.
 
Garmin (GRMN) is recently down 9% in pre-open trading following the company lower 2011EPS guidance. Overall option implied volatility of 41 is above its 26-week average of 33.

OpenTable (OPEN) is recently trading down 8% in pre-open trading on lower than expected Q2 revenue. Overall option implied volatility of 72 is above its 26-week average of 53.
 

CBOE significant call volume increases
 
BAC August 10 9K contracts
CSCO September 15 7K
CI August 50 7K
MT September 33 6K
CIM December 4 5K
STD September 12 5K
BBVA October 13 5K
GLD August 160 4K

 

ADP reports 114k jobs added July,slightly above estimates. June reduced by 14k