Volatility as an asset class:
Shire (SHPGY) is down $11.09 to $80.27 following the FDA’s approval of a generic Adderall XR. Overall option implied volatility of 29 is near its 26-week average of 27.
Aetna (AET) and UnitedHealth (UNH) volatility increases into Supreme Court’s decision on healthcare
Aetna June weekly put option implied volatility is at 98, July is at 47; above its 26-week average of 30.
UnitedHealth (UNH) July put option implied volatility is at 40, August is at 34, September is at 31; above its 26-week average of 27.
U.S. equities are lower (S&P futures off 11 points) into a housing sales report and renewed European fears. Spain officially asks for a bailout and Moody’s is reportedly ready to lower Spanish bank debt again. DAX, CAD and China off 1.5%, Spain and Italy off ~2.5%.
CBOE Volatility Index- $VIX closed @ 18.11, down 22% this year; www.cboe.com/VIX
Supremes this morning?