Blogging Options: CBOE Morning Update

Volatility as an asset class

Costco (COST) is recently up 98c to $86.25 in the premarket on Q2 net sales up 10% to $22.51B. Overall option implied volatility of 19 is below its 26-week average of 22.

Dreamworks (DWA) is recently down $1.50 to $18.14 in the premarket on Q4 profit decrease of 72%. Overall option implied volatility of 42 is near its 26-week average.

First Solar (FSLR) is recently down $2.22 to $34.18 in the premarket after the solar modules manufacturer lowered its 2012 earnings and sales guidance. Overall option implied volatility of 137 is above its 26-week average of 64.

The Dow Jones Industrial Average Index (DJX) closed at 130.05, the highest level since May 2008. Overall option implied volatility is at 15. www.cboe.com/micro/djx

Stocks with significant put volume increases;

KR 3/17/2012 22 21K contracts

BAC 4/21/2012 8 9K

AAPL 3/2/2012 530 7K TBT 1/19/2013 18 4K

ECB Cash infusion and 4Q GDP being revised slightly higher (to a 3% gain from a 2.8% gain) helps stocks at the opening.