Blogging Options: CBOE Morning Update

Volatility as an asset class
BlackRock (BLK) is lower by $2.50 after being down by $3.41 in the premarket on Barclay Bank (BCS) announces that it intends to sell entire its entire $6.1B holdings. Overall option implied volatility of 32 is near its 26-week average of 31.
DaVita (DVA) is off $0.21 81c to $80.61after news of the company purchasing HealthCare Partners for approximately $4.42B. Overall option implied volatility of 22 is below its 26-week average of 32.
Campbell Soup (CPB) is down 60c to $32.60 after affirms a view of FY12 adjusted EPS $2.35-$2.42, compared to analyst consensus of $2.37. Overall option implied volatility of 19 is above its 26-week average of 16.

Puts with volume increases at CBOE;
AAPL 5/19/2012 530 22K contracts
BAC 5/19/2012 7 15K

AIG 5/19/2012 29 7K

AMZN 5/19/2012 215 6K
GE 5/19/2012 19 5K
C 6/16/2012 26 5K

CBOE Volatility Index-VIX is at the 23.72 level, lower by 1.38 from Friday’s close. 10-day moving average is 21.24, 50-day moving average is 17.68.

U.S. equities bounced higher by .5% after selling off for almost two weeks. Facebook at $34.01, off over $4, after trading as low as $33 this morning. 74 million shares in the first 45 minutes. Options listed a week from tomorrow, the Tuesday after Memorial Day.


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