Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Financial service provider’s option implied volatility has increased as share prices have trended lower.
 
Financial Select Sector (XLF) overall volatility at 31 is above its 26-week average of 25.

Visa (V) option implied volatility of 34 is above its 26-week average of 31.
 
MasterCard (MA) overall option implied volatility of 37 is above its 26-week average of 31.
 
American Express (AXP) option implied volatility of 32 is above its 26-week average of 27.
 
Discover (DFS) option implied volatility of 37 is above its 26-week average of 32.

 
Calls with increasing volume at CBOE.
 
CSCO 1/19/2013 17.5 18K contracts
 
AAPL 6/1/2012 570 12K
 
VZ 1/19/2013 40 10K
 
ABV 7/21/2012 40 7K
 
HNR 7/21/2012 7.5 6K
 
BAC 7/21/2012 7 5K
CBOE Volatility Index-VIX closed at 26.65, 10-day moving average is 23.11, 50-day moving average is 19.03.
U.S. equity markets are mixed, after Asia dropped sharply. Japan closed at an 18-year low. Oil trades below $82 and stable European markets. UK closed for queens birthday, very light economic news week.