Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Apollo Group (APOL) is up $1.11 to $33.58 after the company reported higher than expected Q3 EPS but announced a larger than expected decline in total enrollment and said it expects student starts to decline again in Q4. Overall option implied volatility of 73 is above its 26-week average of 38.

Facebook (FB) announced that Sheryl Sandberg, COO at Facebook, has joined the company’s board of directors. Overall option implied volatility of 54 is below its four-week average of 58.
 
Seagate (STX) is higher by 81c to $24.08 in the premarket into being added to S&P 500 as of 6/29 close. Overall option implied volatility of 53 is above its 26-week average of 48.

Calls with increasing volume at CBOE.
 
SPY 7/21/2012 134 22K contracts

MDT 8/18/2012 39 14K

IWM 8/18/2012 83 12K

BAC 7/21/2012 8 11K

U.S. equities are pointing to a higher open as the market pared some of its losses just before the close last night. Home prices up slightly. Consumer Confidence expected in an hour.

Investors will be watching the Spanish bond auction today, which is expected to cause the country to pay its highest short-term rates in the past six months.
 
CBOE Volatility Index-VIX closed at 20.37, 10-day moving average is 20.16, 50-day moving average is 20.51.