Blogging Options: CBOE Morning Update

Volatility as an asset class
 
Financial Select Sector (XLF) is recently down 3c to $15.39 in the premarket a day after banking stress test results caused investores to bid the XLF to a seven-month high. Overall option implied volatility of 24 is below its 26-week average of 27.

U.S. Bancorp (USB) increased its dividend by 56% and authorized a new 100M share buyback. Overall option implied volatility of 21 is below its 26-week average of 33.
 
Wells Fargo (WFC) is recently up 27c to $33.60 in the premarkate after the company announced an additional 1Q12 dividend on its common stock of 10c per share, which together with the 12c per share dividend previously declared on January 24 brings the total dividend declared for Q1 to 22c per share. Overall option implied volatility of 27 is below its 26-week average of 34.
 

Stocks with significant call volume increases;
 
BAC 3/17/2012 9 58K contracts
AAPL 3/17/2012 560 19K
AAPL 3/17/2012 565 18K
C 3/17/2012 36 11K
GE 1/19/2013 20 10K

CBOE Volatility Index-VIX closed at 14.80, 10-day moving average is 17.64, 50-day moving average is 19.08.

U.S. equities are mixed a day after stocks moved sharply higher on bank stress test results.