Blogging Options: CBOE Morning Update

Volatility as an asset class:
DreamWorks Animation SKG (DWA) “Madagascar 3: Europe’s Most Wanted” claimed the top spot, earning $60.4M in North America, according to early estimates from the company. Overall option implied volatility of 41 is near its 26-week average of 39.

Under Armour (UA) is up $1.59 to $104.90 in the premarket following the board approving a two-for-one stock split. Overall option implied volatility of 42 is near its 26-week average.

Domino’s Pizza (DPZ) surpassed the $1B mark in digital sales in the U.S. alone, during a yearlong period from April 2011 to 2012. Beginning today, Domino’s Pizza will offer 50% off on all pizzas ordered online at menu price. The deal will be valid through June 17. Overall option implied volatility of 61 is above its 26-week average of 40.

Puts with increasing volume at CBOE.

INTC 6/16/2012 26 20K contracts

AAPL 6/8/2012 570 8K

BAC 6/16/2012 7 6K

WFC 6/16/2012 30 5K

X 6/16/2012 28 4K

ARBA 6/16/2012 35 4K

U.S. equities are higher in the premarket on hopes the bailout of Spain’s banks will reduce the euro debt crisis.
CBOE Volatility Index-VIX closed at 21.23, 10-day moving average is 23.35, 50-day moving average is 19.83.

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