Blogging Options: CBOE Morning Update

Volatility as an asset class

Groupon (GRPN) is recently down $2.03 to $16.35 in the premarket after lowering guidance, announcing material weakness. Overall option implied volatility of 45 is below its 18-week average of 50.

Avon Products (AVP) is recently up $3.77 to $23.15 into Coty Inc. proposal to acquire Avon Products for $23.25 per share in cash. Overall option implied volatility of 27 is below its 26-week average of 35.
 
Global Payments (GPN) was halted at $47.50 on Friday March 30 into the company’s update on unauthorized system access. April put option implied volatility is at 47, May is at 33; compared to its 26-week average of 34.
 
CBOE Volatility Index-VIX closed at 15.50, 10-day moving average is 15.24, 50-day moving average is 17.48.

Stocks with significant put volume increases;
 
AAPL 3/30/2012 600 21K contracts

RIMM 4/21/2012 13 6K653

GILD 4/21/2012 40 4K

HD 4/21/2012 47 4K

U.S. equities are drifting lower in the premarket into March unemployment numbers being released on Friday. Some profittaking on good 1Q.