Volatility as an asset class
St. Jude Medical (STJ) is recently down $2.07 to $41.73 after warning doctors about device malfunctions. May call option implied volatility is at 28, July is at 26; below its 26-week average of 32.
Yahoo! (YHOO) is recently down 13c to $15.05 after announcing cuts of approximately 2,000 jobs.
May call option implied volatility is at 30, July is at 32; below its 26-week average of 39.
Starbucks (SBUX) recently traded at a record high after an upgraded to Conviction Buy from Neutral at Goldman Sachs. Overall option implied volatility of 27 is below its 26-week average of 33.
CBOE Volatility Index-VIX is recently +12.4% to $17.45; below its 200-day moving average of 25.86. April 21 and 25 calls are active on total volume of 241K contracts. www.cboe.com/VIX