Blogging Options: CBOE Morning Update

Stock Mover’s

First Solar (FSLR) is recently down $5.58 to $37 in pre-open trading on the company seeing FY12 EPS $3.75-$4.25 vs. consensus $7.42. Overall option implied volatility of 93 is above its 26-week average of 57.

Broadcom (BRCM) is recently up $1.81 to $30 in pre-open trading following the company increasing high end Q4 revenue view to $1.8B vs. consensus $1.7B. Overall option implied volatility of 45 is above its 26-week average of 42.

Avon Products (AVP) is recently up $1.61 to $17.75 in pre-open trading on the company conducting an external search for a new CEO. Overall option implied volatility of 37 is above its 26-week average of 35.
 

Volatility as an asset class
 
U.S. equity’s are trading mixed in pre-market trading as European and Asian stocks declined.

CBOE Volatility Index-VIX closed at 25.40, below its 10-day moving average of 27.54 and its 50-day moving average of 31.24.
 
 
CBOE significant put volume increases;

BAC 1/21/2012 4 17K contracts
GRMN 1/21/2012 35 12K
INTC 7/21/2012 17 9K
RRC 1/21/2012 52.5 9K
INTC 7/21/2012 23 9K
GLD 3/17/2012 160 8K
AAPL 12/17/2011 390 5K
MGM 6/16/2012 16 3K

Euro dropped below 1.30, and Italian bond yield hit 14-year high. Zynga pending IPO being watched by investors and traders.