Volatility as an asset class;
Tempur-Pedic (TPX) is trading up $2.09 to $28.87 in the premarket after announcing the purchase of Sealy in deal valued at $1.3B. Overall option implied volatility of 58 is near its 26-week average of 56.
Google (GOOG) is up $4.54 to $758 in the premarket. October call option implied volatility is at 32, November is at 26, December is at 23; compared to its 26-week average of 26 into the expected release of Q3 results on October 10.
VIX methodology for Google (VXGOG) closed at 32.36, above its 50-day moving average of 25.16.
VIX methodology for Apple (VXAPL) closed at 34.65, above its 50-day moving average of 27.48.
CBOE Volatility Index (VIX) closed at 16.81, above its 10-day moving average of 14.56 and below its 50-day MA of 15.96.
Calls with increasing volume at CBOE;
SPY 1/19/2013 165 35K contracts
QQQ 10/20/2012 71 33K
KBE 12/22/2012 23 18K
BAC 10/20/2012 9 11K
AAPL 9/28/2012 670 10K
GLD 9/28/2012 10K
U.S. stocks were higher on speculation China may announce new stimulus programs, but gave up part of their gains after several reports came out at 7:30am CDT.
August Durable Goods down 13.2% (up 3.3% in July), largest drop in 3 1/2 years. X-Transports off 1.6%.
July Durables lowered to + 3.3% from +4.1%.
Q2 GDP + 1.3% (down from +1.7%) and below the 1.7% expected
Weekly Jobless down slightly to 359k, the only bright spot this morning.