Blogging Options: CBOE Morning Update

Volatility as an asset class;

Lennar (LEN) is up $0.19 to $37.70, giving up big gains in the premarket, after the company reported earnings for its Q3 that beat by 12c a share. Overall option implied volatility of 39 is below its 26-week average of 42.

Facebook (FB) is down 91c to $21.98 after a negative Barron’s piece. Overall option implied volatility 52 is below its 26-week average of 56.

Questcor (QCOR) opens down $9.73 to $20.40 on a government investigation of the company’s promotional practices. Overall option implied volatility of 86 is above its 26-week average of 58.

 Kraft leaves the DJIA today, replaced by United Health, which is up $0.25. AAPL sold 5 million iphone5 this weekend but is off $8 at opening.

CBOE Volatility Index (VIX) closed at 13.98, below its 10-day moving average of 14.81 and its 50-day MA of 16.12.

Calls with increasing volume at CBOE;

SPY 10/20/2012 145 28K contracts

AAPL 9/22/2012 700 26K

IWM 10/20/2012 86 25K

BAC 10/20/2012 8 23K

U.S. stocks are lower as European debt-crises talks lost their momentum.