Volatility as an asset class
Electronic Arts (EA) opens down 68c to $14.45 in the premarket on weak core revenue and less than expected guidance. Overall option implied volatility of 52 is above its 26-week average.
Rackspace (RAX) is off $7.80 to $50.00 on less than expected earnings and customer additions. Overall option implied volatility of 50 is above its 26-week average of 45.
Wynn Resorts (WYNN) is off $4.00 to $121.19 on Q1 profits decreasing 19% on a smaller cut of revenue from its table games in Las Vegas. Overall option implied volatility of 44 compares to its 26-week average of 47.
CBOE Volatility Index-VIX is at 19.33, a gain of 0.39 after closing at 18.94, 10-day moving average is 17.37, 50-day moving average is 17.11.
Stocks with significant put strike volume increases;
SPY 5/19/2012 140 10K contracts
AAPL 5/11/2012 570 8K
BAC 7/21/2012 12 7K
EA 5/19/2012 15 6K
U.S. equities are lower on concerns Greece may default on its debt in June.