Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Allstate (ALL) is up $1.60 to $35.89 in the premarket following a better than expected Q2 profit on natural disasters provide less costly. Overall option implied volatility of 23 is near its 26-week average.
 
Dreamworks (DWA) is down $1.30 to $17.90 in the premarket following Q2 earnings dropping 63%. Overall option implied volatility of 61 is above its 26-week average of 38.
 
MasterCard (MA) is down $13.57 to $423 in the preopen after reporting Q2 revenue of $1.8B, compared to consensus estimates of $1.88B. Overall option implied volatility of 33 above its 26-week average of 30.

Electronic Arts (EA) is recently up 53c to $11.55 on less than expected Q1 loss. Overall option implied volatility of 52 is above its 26-week average of 44.
 

CBOE Volatility Index-VIX closed at 18.93, 10-day moving average is 17.75, 50-day moving average is 19.93.
 
Puts with increasing volume at CBOE

COH 8/18/2012 55 23K contracts
 
QQQ 9/22/2012 64 20K
 
SPY 8/18/2012 132 17K
 
TWX 8/18/2012 38 9K
 
CHK 8/18/2012 17 8K

U.S. stocks are higher after two-days of declines into today’s FOMC meeting, tomorrow’s ECB meeting and Friday’sjobless report. Today’s ADP Report, higher than expected 163k (remember their estimaate last month was 100k higher than actual). What does that do to FED easing? Stay tuned…