Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Credit markets are mixed today as yields trade near record lows
 
CBOE Interest Rate 5-year T Note (FVX) is down 49c to $6.75; above its 10-day moving average of 7.16 and below its 50-day moving average of 7.42.
 
CBOE Interest Rate 10-year T-Note (TNX) is down 70c to $15.89 above its 10-day moving average of 16.23 and below its 50-day moving average of 17.28.
 
CBOE 30-Year Treasury Bond (TYX) is down 73c to $26.90; above its 10-day moving average of 27.03 and below its 50-day moving average of 28.49.

Active options on CBOE: SPY AAPL IWM VXX EWZ QQQ XLB JPM F RIMM
 

Lincare Holdings (LNCR) and Linde (LNAGF) signed a merger agreement for Linde to acquire all outstanding shares of Lincare for $41.50 per common share. LNCR trading at $41.33, up $7.31. Overall option implied volatility was 51, above its 26-week average of 31.

Bristol-Myers (BMY) is acquiring Amylin (AMLN) for $5.3B, $31 per share. Amylin overall option implied volatility of 46 is below its 26-week average of 63.
 

CBOE Volatility Index-VIX up 58c to 17.66.

U.S. equities are off slightly. Construction Spending rose, boosted by Federal spending, but ISM said manufacturing fell to 49.7 in June from 53.5 in May. Readings below 50 imply the economy is contracting. Unemployment in Europe rose above 11%, highest since at least 1995.