Blogging Options: CBOE Morning Update

Volatility as an asset class:
 
Facebook (FB) is up $1.23 to $20.65 in the premarket after chief executive Mark Zuckerberg made his first public comments since his firm’s initial public offering. Overall option implied volatility of 55 is near is 26-week average.
 
Steel Dynamics (STLD) is down 39c to $11.89 in the premarket on the company seeing Q3 EPS 1c-5c, compared to consensus 19c. Overall option implied volatility of 38 is near its 26-week average.
 
Texas Instruments (TXN) is down 9c to $28.49 in the premarket on the company seeing Q3 EPS 38c-42c, consensus 45c. Overall option implied volatility of 26 is near its 26-week average.
 

CBOE Volatility Index-VIX closed at 16.40, below its 10-day moving average of 16.71 and its 50-day moving average of 16.56.

Calls with increasing volume at CBOE;
 
BAC 9/22/2012 9 17K contracts
 
KGC 11/17/2012 10 14K
 
SPY 9/14/2012 147 12K
 
S 10/20/2012 5.5 9K
 
ABX 4/20/2013 55 6K

VIX volume yesterday as mentioned in two of Russell Rhoads’ blogs was impressive. U.S. stocks are higher in pre-market. European equity markets rallied after the German Federal Constitutional Court backed permanent rescue funds but attached liability caps. Import Prices non-event, I-Phone 5 at noon CDT. Miners on strike in So. Africa sending some precious metals higher. US Ambassador killed in Libya,unclear how markets react.