Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Cisco (CSCO) is up $1.28 to $18.64 in the premarket after reporting Q4 EPS 47c, consensus 46c and raising its quarterly dividend by 75%. Overall option implied volatility of 30 is near its 26-week average of 29.

Applied Materials (AMAT) is down 50c to $11.30 in the premarket after the company reported less than expected Q4 EPS. Overall option implied volatility of 31 is near its 26-week average.
 
NetApp (NTAP) is up $1.32 to $33.06 in the premarket after reporting Q1 profit fell 54%, but in line with analyst estimates. Overall option implied volatility of 79 is above its 26-week average of 42.

 
CBOE Volatility Index-VIX closed at 14.63, below its 10-day moving average of 15.36.
 
Calls with increasing volume at CBOE
 
S 1/18/2014 4 39K contracts
AAPL 8/18/2012 635 15K
CSCO 8/18/2012 18
FB 8/18/2012 22 9K
XLF 10/20/2012 15 8314

U.S. stocks are mixed in the premarket following results from Cisco, Wal-Mart (off $1.90 pre-market) and Applied Material. Housing Starts were lower but Permits rose nicely. 10-year traded at 1.8%. Huge rain in midwest – can corn crop be saved? 

Next Facebook lockup releases up to 270 million shares this morning.