Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Research in Motion (RIMM) is $1.38 to $7.75 in the premarket on the first quarterly operating loss in more than seven-years. Overall option implied volatility of 69 is above its 26-week average of 64.

KB Homes (KBH) is up 91c to $9.60 in the premarket on a less than expected Q2 EPS loss of (31c). Overall option implied volatility of 61 is near its 26-week average of 60.
 
Nike (NKE) is down $10.64 to $86.31 in the premarket after Q4 results missed expectations and inventories rose 23% to $3.4B. Overall option implied volatility of 35 is above its 26-week average of 26.

CBOE Volatility Index-VIX closed at 19.70, 10-day moving average is 19.24, 50-day moving average is 20.56.
 
Calls with increasing volume at CBOE.
 
SPY 6/29/2012 132 23K contracts
 
EEM 7/21/2012 45.5 15K
 
MSFT 10/20/2012 32 12K

SPDR S&P 500 ETF (SPY) is up $2.45 to $135.26 in the premarket as European policy makers eased repayment for Spanish banks. May Income up 0.2%, Spending flat, both numbers in line. Spending in April revised a little lower. Gold spiking higher.