Blogging Options: CBOE Morning Update

Volatility as an asset class

Hewlett-Packard (HPQ) is up $1.52 to $22.60 in the premarket on solid earnings and guidance on cost cutting. Overall option implied volatility of 41 is above its 26-week average of 33.
 
Costco (COST) is higher by 59c to $83.90 on better than expected revenue and earnings per share. Overall option implied volatility of 22 is above its 26-week average of 20.
 
NetApp (NTAP) is trading down 45.66 to $28.45 in the premarket on less than expected guidance. Overall option implied volatility of 56 is above its 26-week average of 40.

Pandora (P) is recently up $1.92 to $12.20 in the premarket after Q1 results beat expectations. Overall option implied volatility of 76 is above its 26-week average of 64.

 
Puts with volume increases at CBOE;
 
DELL 6/16/2012 15 17K contracts
 
AAPL 5/25/2012 550 7K
 
NOK 7/21/2012 2.5 5K
 
TLT 5/25/2012 123 4K
 
KMI 6/16/2012 45 3K
 
MS 1/18/2014 8 3K

 
CBOE Volatility Index-VIX closed at 22.33, 10-day moving average is 22.12, 50-day moving average is 18.07.

U.S. equities are higher on solid results from Costco and cost cutting guidance from Hewlett Packard. But the Durable Goods Report came in less than expected – a gain of 0.2% versus the 0’4% to 0.5% looked for. Jobless Claims were down 2 k last week, after last week’s number was revised up 2k. Where is Rick Santelli when we need him? Talk is starting about how the European situation might affect US corporate earnings in upcoming quarters.