Volatility as an asset class:
Hewlett-Packard (HPQ) is down 85c to $18.40 in the premarket on the company seeing future financial results well below normal seasonality. Revenues light. Overall option implied volatility of 38 is above its 26-week average of 34.
Hormel (HRL) is up 83c to $29.25 in the premarket on Q3 net rising 13% on Spam & turkey revenue growth. Overall option implied volatility of 26 is above its 26-week average of 20.
Guess (GES) is down $5.58 to $27.96 in the premarket on the company seeing FY13 revenue $2.62B-$2.65B, consensus $2.71B. Overall option implied volatility of 50 is above its 26-week average of 40.
CBOE Volatility Index-VIX closed at 15.10, below its 10-day moving average of 14.50, and below its 50-day moving average of 17.37.
Calls with increasing volume at CBOE;
XLF 11/17/2012 15 41K contracts
CSCO 12/22/2012 22 40K
AAPL 8/24/2012 660 19K
SPY 9/22/2012 147 18K
U.S. stocks are mixed to lower following Hewlett-Packard (HPQ) seeing below normal seasonality revenue in upcoming quarters. Weekly Initial Claims weaker, 10-year down 4 bips.