Blogging Options: CBOE Morning Update

Volatility as an asset class

Edwards Lifesciences (EW) is down $15.17 in the premarket after lowering Q3 revenue guidance. Overall option implied volatility of 30 is near its 26-week average of 31 according to Track Data, suggesting non-directional price movement into lower sales guidance.

Continental Resources (CLR) is down $0.91 to $75.60 in the premarket after announces five-year plan to triple production/reserves. Overall option implied volatility of 40 is below its 26-week average of 43.

VIX methodology for Apple (VXAPL) at 39.40; above its 50-day moving of 28.30.

CBOE Volatility Index (VIX) closed at 15.11, up from 14.33 on Friday but below its 10-day moving average of 15.42 and 50-day MA of 15.59.

Calls with increasing volume at CBOE;

GLW 1/19/2013 15 57K contracts

JPM 1/19/2013 41 15K

C 11/17/2012 34 12K

BMRN 11/17/2012 47 8K

SPY 11/17/2012 145 6K

BAC 10/12/2012 10 5K

U.S. stocks are mixed on the IMF lowering its global growth forecast by 0.2% points to 3.3%, the slowest since the 2009 recession. They also raised their probability of global growth falling below 2% in 2013 from 4% to 17%.

Slow economic news day, Alcoa after the close kicks off Q3 earnings.