Blogging Options: CBOE Morning Update

Volatility as an asset class:

AIG (AIG) is down 59c to $33.40 in the premarket following the U.S. Treasury Department saying it will sell $18B of AIG stock. Overall option implied volatility of 31 is below its 26-week average of 34.

Plains Exploration (PXP) is down $1.83 to $38.50 following the company acquiring Gulf of Mexico interests from BP (BP) for $5.55B. Overall option implied volatility of 36 is below its 26-week average of 40.
CBOE Volatility Index-VIX closed at 14.38, below its 10-day moving average of 16.60 and its 50-day moving average of 16.64.
Calls with increasing volume at CBOE;
EWJ 1/19/2013 10 29K contracts
MS 1/19/2013 19 25K
AAPL 9/7/2012 680 24K
BAC 9/22/2012 9 21K
SPY 9/7/2012 144 18K
XLF 10/20/2012 16 16K
FXI 9/22/2012 33.5 14K
GLD 9/22/2012 166 12K

U.S. stocks are mixed to lower into Thursday’s Fed meeting results. The German Supreme Court rules Wed on ECB legality, China growth slowed slightly, European stocks off fractionally, gold creeping higher.