Volatility as an asset class
Banco Bilbao (BBVA) is recently trading near a three-year low on concerns Spanish banks may additional capital as a strong recovery is not likely soon and austerity measures may slow growth. Overall option implied volatility of 54 is above its 26-week average of 49
Banco Santander (STD) overall option implied volatility of 54 is above its 26-week average of 50.
MSCI Spain Index ETF (EWP) April put option implied volatility is at 37, May is at 39, July is at 29; compared to its 26-week average of 33.
CBOE Volatility Index (VIX) May 26 and 37 call spreaders are active on total option volume of 405K contracts; www.cboe.com/VIX.
U.S. equities are higher on optimism for corporate earnings and European monetary system infusing capital to stabilize debt markets.