Blogging Options: CBOE Morning Update

U.S. equity futures are mixed in pre-open trading into leaders meeting for a European summit on Thursday. CBOE Volatility Index-VIX closed at 27.84, 10-day moving average is 30.66, 50-day moving average is 32.85. Stock Mover’s Darden (DRI) is recently down $3.83 to $43.90 in pre-open trading following lower than expected Q2 cont ops EPS guidance of about’ 41c vs. consensus 54c. Overall option implied volatility of 30 is near its 26-week average of 32. 3M Company (MMM) is recently up $1.05 to $81.98 in pre-open trading on the company affirming 2011 EPS expectations. Overall option implied volatility of 29 is near its 26-week average of 27. AutoZone (AZO) is indicated higher in pre-open trading after reporting Q1 EPS $4.68 vs. consensus $4.44. Overall option implied volatility of 26 is above its 26-week average of 23. CBOE significant call volume increases; AMGN 12/17/2011 65 8K contracts C 12/17/2011 30 7K PFE 1/21/2012 15 6K BAC 12/17/2011 6 5K CSCO 1/21/2012 20 4K VALE 1/21/2012 26 4K CSCO 12/17/2011 19 4K WFC 12/17/2011 27 3K GE 1/21/2012 17.5 3K S&P possible downgrade of 15 European countries backdrop on today’s trading.