Blogging Options: CBOE Afternoon Update

Volatility as an asset class
 

Stocks and credit markets are mixed to higher on weak gold and silver prices as traders rebalance their positions into the end of the year.
 
Proshares UltraShort Barc 20 Year Treasury ETF (TBT) overall option implied volatility of 40 is above its 26-week average of 38.
 
CBOE Interest Rate 5-year T Note (FVX) at $8.97; below its 50-day MA of 9.28.
 
CBOE Interest Rate 10-year T-Note (TNX) at $19.13; below its 50-day moving average of 20.31.
 
CBOE 30-Year Treasury Bond (TYX) at $29.33 below its 10-day moving average of 30.50 and 50-day moving average of 30.71.
 
CBOE Gold Volatility Index (GVZ) up 26c to $24.58 below its 10-day MA of 26.41; gold below $1,534. www.cboe.com/GVZ
 
Short and long premium spreaders are positioned for the one and half trading days into next four-days (tomorrow, Friday, is a full trading day for stocks) with the expectations of additional movement into the start of earnings season in mid-January. 

Gold off 1.7% but holding key support level.

Euro rallied to unchanged on the day, helping calm markets.