Blogging Options: CBOE Morning Update

Volatility as an asset class
 
AOL (AOL) is recently up $5.77 to $24.19 in the pre-open on a definitive agreement to sell over 800 of its patents and their related patent applications to Microsoft (MSFT) for $1.056B in cash. Overall option implied volatility of 37 is below its 26-week average of 45.

Bank of America (BAC) is recently down 20c to $9.03 in the premarket on concerns economic growth is slowing. Overall option implied volatility of 43 is below its 26-week average of 53.
 
CBOE Volatility Index (VIX) closed at 16.70, 10-day moving average is 15.55, 50-day moving average is 17.28.
 
SPDR Gold Trust (GLD) overall implied volatility at 20; 26-week average is 22.
 
iShares Silver Trust (SLV) overall implied volatility at 33; 26-week average is 38.
 
NASDAQ 100 (QQQ) overall implied volatility at 18; 26-week average is 22.

 
Stocks with significant put volume increases;
 
AAPL 4/5/2012 630 12K contracts

BAC 4/13/2012 9 5K

MPEL 7/21/2012 13 3K

HAL 1/19/2013 36 3K

RIMM 4/5/2012 12 3K

U.S. equities are lower on weak job creation (Friday’s report, 120k new jobs created but mid-220’s expected)markets were closed) and expectations interest rates will stay low on weeks March jobs data.

Earnings season unofficially starts tomorrow after the close (Alcoa).