Volatility as an asset class
Expedia (EXPE) was up over $8 to 41.50 on better than expected Q1 results driven by bookings growth and early platform benefits. Overall option implied volatility of 34 is near its 26-week average of 35.
Starbucks (SBUX) is down $3.65 to $57 on soft guidance. Overall option implied volatility of 31 is near its 26-week average of 31.
Amazon.com (AMZN) is up $25 to $221 on better than expected Q1 results and outlook. Overall option implied volatility 40 is above its 26-week average of 38.
The CBOE Volatility Index – VIX, was up 0.19 to 16.43 after closing yesterday at 16.24, 10-day moving average is 18.21, 50-day moving average is 17.23.
Stocks with significant put strike volume increases;
F 5/19/2012 11 15K contracts
CHK 6/16/2012 17 13K
ZNGA 5/19/2012 8 10K
U.S. equities were mixed to slightly lower after the first half-hour of trading. The 1st Quarter GDP report was a big disappointment rising only 2.2% (2.5% was expected, and 1st Quarter rise was lower than the 4th Quarter 3% gain). The U of M Sentiment showed a slight gain to 76.4% from the 76.2% level. Spanish downgrade not helping US markets.