Blogging Options: CBOE Morning Update

Volatility as an asset class:

Alcoa (AA) is up 4c to $8.80 in the premarket following inline Q2 results. Overall option implied volatility of 42 is above its 26-week average of 38.

Teucrium Corn Fund (CORN) is down in light but volatile trading in the premarket after a sharp rally following a corn-belt heat wave. Overall option implied volatility of 41 is above its 26-week average of 28.
 
 Patriot Coal (PCX) was halted at 61c into the company filing for chapter 11 bankruptcy protection. Overall option implied volatility of 133 is above its 26-week average of 82.
 
AMD (AMD) is down 48c to $5.14 in the premarket after lowering Q2 revenue view on China and Europe weakness. Overall option implied volatility of 54 is above its 26-week average of 48.
 

Puts with increasing volume at CBOE
 
HSH 7/21/2012 18 48K contracts
 
VXX 1/19/2013 7 20K
 
SPY 7/21/2012 130 19K
 
MRK 1/19/2013 20 17K
 
INTC 8/18/2012 23 14K
 
MSFT 1/19/2013 25 10K

U.S. equities are slightly higher following yesterday’s minor sell-off andfirmness in European markets..

CBOE Volatility Index-VIX closed at 17.98, 10-day moving average is 18.23, 50-day moving average is 20.50.