Blogging Options: CBOE Morning Update

Volatility as an asset class

PepsiCo (PEP) increased annual dividend by 4%. Overall option implied volatility of 13 is below its 26-week average of 18.
 
Comcast (CMCSA) is off $0.80 to $30.60 in the premarket after reporting Q1 EPS 45c, consensus 42c. Overall option implied volatility of 24 is below its 26-week average of 28.
 
CVS Caremark (CVS) is up $1.20 to $45.97 in the premarket after reporting Q1 EPS 65c, consensus 63c. Overall option implied volatility of 23 is below its 26-week average of 25.

Garmin (GRMN) is recently up 66c to $48.15 in the premarket after reporting Q1 pro forma EPS 45c, consensus 41c. Overall option implied volatility of 33 is above its 26-week average of 31.
 
CBOE Volatility Index-VIX closed at 16.60, 10-day moving average is 17.46, 50-day moving average is 17.07.
 

 
Stocks with significant call strike volume increases;
 
VALE 6/16/2012 24 27K contracts
 
PFE 1/19/2013 24 24K
 
CREE 1/19/2013 30 23K
 
MS 5/19/2012 20 20K
 
SPY 5/4/2012 142 12K
 
AAPL 5/4/2012 600 11K (closed near 50 day moving average)
 
NTAP 6/16/2012 40 10K
 
MS 6/16/2012 20 10K
 
TWC 1/19/2013 82.5 9K

European stocks open lower after May Day holiday. 10-year drops to 1.92%. Comcast & Mastercard beat estimates. The ADP report this morning was awful – 119k jobs added versus 170k to 175k expected. U.S. equities are lower on this news, will analysts reduce their estimates for Friday’s unemployment report?