Blogging Options: CBOE Morning Update

Volatility as an asset class

JP Morgan (JPM) is recently down $1.04 to $35.81 in the pre-market on Q4 revenue $22.19B vs. consensus $23B. Overall option implied volatility of 34 is below its 26-week average of 40.
 
Apple (AAPL) is recently up 10c to $421.50 in pre-market-trading. January call option implied volatility is at 21, February is at 30, compared to its 26-week average of 31 into the expected release of Q1 results on January 24.
 
iShares Russell 2000® Index Fund (IWM): www.cboe.com/IWM overall implied volatility of 27 near its 26-week average. 
 
CBOE significant put volume increases;

VALE 6/16/2012 16 6K contracts
BAC 2/18/2012 6 5K
GLD 2/18/2012 156 5K 
F 4/21/2012 11 5K
XOM 1/21/2012 85 5K
BIDU 2/18/2012 110 5K
AAPL 1/13/2012 420 4K
UPL 6/16/2012 26 4K 
BAC 3/17/2012 5.5 4K

U.S. equities are mixed in the pre-market as stocks trade near six-month highs as traders adjust positions into earnings season. Long weekend also a factor. 

JPMorgan earnings in line but guidance lowered. Earnings season kicks in next week.

Trade Deficit for November rose by $4.5B, European drop was a major factor.