Blogging Options: CBOE Morning Update

Volatility as an asset class

Riverbed Technology (RVBD) is recently down $4.14 to $25.78 in the premarket on Q1 revenue guidance of $183M-$187M vs. consensus $197.11M. Overall option implied volatility of 56 is below its 26-week average 65.
 
Juniper (JNPR) is recently down $2 to $20.39 in the premarket on the company’s disappointing guidance due to slowing service provider spending and the challenging macro environment. Overall option implied volatility of 46 is below its 26-week average of 51.
 
Starbucks (SBUX) is recently down 79c to $47.55 in the premarket following the company saying global comparable store sales increased 9%, driven by a 7% increase in traffic and a 2% increase in average ticket. Overall option implied volatility of 29 is below its 26-week average of 37.
 
 
Significant put volume increases;

WFC 7/21/2012 28.0000 11K contracts
STJ 2/18/2012 37.5 8K
GLD 3/17/2012 144 7K
BAC 2/18/2012 7 5K
XEC 6/16/2012 45 5K
C 6/16/2012 28 5K
ESI 1/19/2013 52.5 4K
HIG 6/16/2012 16 4K

U.S. equities are mixed to lower after the first hour of trading. VIX was up 0.14 to 18.71. GDP price index was up 0.4% vs. consensus of 1.5% for the quarter, Sentiment was slightly higher.