Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Cirrus Logic (CRUS) is up $6.33 to $36.17 in the premarket after the company provided higher than expected revenue guidance. Overall option implied volatility of 73 is above its 26-week average of 53.
 
Seagate (STX) is down $2.93 to $27.50 in the premarket after the company provided lower than expected sales growth expectations. Overall option implied volatility of 50 is above its 26-week average of 48.
 
Humana (HUM) is down $6.13 to $64.42 in the premarket after the company provided weak Q2 results pressured by a recent legal settlement, while lowering its full-year foccast. Overall option implied volatility of 34 is above its 26-week average of 31.

CBOE Volatility Index (VIX) closed at 18.03, compared to its 10-day moving average of 17.50 and its 50-day MA of 19.96.
 
 
Calls with increasing volume at CBOE
 
S 1/18/2014 3 40K contracts
 
QQQ 8/18/2012 66 31K
 
IWM 12/31/2012 84 25K
 
NFLX 8/18/2012 100 15K
 
SPY 8/18/2012 140 11K
 
AIG 8/3/2012 32 10K

U.S. stocks are slightly to higher into this week’s FOMC meeting, consumer confidence and jobless reports. Coach drops $11 in pre-market on poor earnings.

Economic data this morning mixed. June Spending flat and May revised to drop of 0.1%. Spending is thought to make up almost 70% of GDP, and has a big impact on employment. Income up 0.5%, close to in-line. Savings rate highest in almost a year. Case Shiller says housing prices rose modestly last month, not on my block.