Blogging Options: CBOE Morning Update

Volatility as an asset class;
 
Oracle (ORCL) is trading up 34c to $32.64 in the premarket as Q1 earnings climbed 11% as software revenue and margins improved. Overall option implied volatility of 28 is above its 26-week average of 26.

McDonald’s (MCD) is up 15c to $93.30 in the premarket after raising its dividend 10%, a shareholder-friendly overture that demonstrates the company’s confidence in its long-term outlook. Overall option implied volatility of 16 is near its 26-week average.
 
Texas Instrument (TXN) is up 4c to $28.89 in the premarket after raising its dividend 24%. Overall option implied volatility of 24 is near its 26-week average of 25.

Darden (DRI) beats estimates by $0.01. Shares up $1.75.

CBOE Volatility Index (VIX) closed at 14.07, below its 10-day moving average of 14.81 and its 50-day MA of 16.12.
 

Calls with increasing volume at CBOE;
 
SPY 9/22/2012 150 82K contracts
 
AAPL 9/22/2012 700 16K
 
VXX 10/20/2012 12 13K
 
XLK 9/22/2012 31 12K
 
BAC 10/20/2012 10 10K

U.S. stocks are higher on hopes Spain and the European Commission are working on an additional package of economic reforms.Oil higher, grains mixed. Lines in NY this morning at Apple Store for new I-Phone 5.

Triple Witch and S&P 500 rebalancing today. September SPX Settlement later this morning – symbol is SET.