Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Coventry Health Care (CVH) is up $6.46 to $41.40 in the premarket following Aetna (AET) acquiring Coventry in a transaction valued at $7.3B, including the assumption of Coventry debt. Overall option implied volatility of 23 is below its 26-week average of 27.
 
Lowe’s (LOW) is trading down $1.87 to $26 in the premarket on the company seeing FY12 EPS $1.64, consensus $1.80. Overall option implied volatility of 27 compares to its 26-week average of 30.
 
Corinthian Colleges (COCO) is down 13c to $2.32 in the premarket after reporting Q4 revenue of $394.8M, compared to consensus $403.2M. Overall option implied volatility of 82 is above its 26-week average of 65.
 

CBOE Volatility Index-VIX closed at 13.44, 10-day moving average is 14.81, 50-day moving average is 17.83.
 
 
Calls with increasing volume at CBOE.

SPY 8/18/2012 142 36K contracts
 
IWM 9/22/2012 76 30K
 
FB 8/18/2012 19 26K
 
AAPL 8/18/2012 640 15K

U.S. stocks are mixed after the S&P 500 rallied to its highest level since April. Asian stocks lower, European stocks mixed to lower. Light economic news this morning.