Volatility as an asset class
Cummins (CMI) is down $4.34 to $85.50 in the premarket after reducing 2012 guidance. Overall option implied volatility of 34 is near its 26-week average.
Yum! Brands (YUM) is up $3.38 to $69.08 in the premarket after reporting Q3 EPS ex-items 99c, consensus 97c. Overall option implied volatility of 27 is above its 26-week average of 25.
Alcoa (AA) is down $0.10 to $9.02 in the premarket after reporting Q3 adjusted EPS 3c, compared to consensus 0c. Overall option implied volatility of 40 is above its 26-week average of 37.
FedEx (FDX) is up $2.07 to $87.65 in the premarket on the company backing FY13 EPS of $6.20-$6.60, consensus $6.45. Overall option implied volatility of 23 is below its 26-week average of 27.
CBOE Volatility Index (VIX) closed at 16.37, up from Monday’s levels, above its 10-day moving average of 15.51 and 50-day of 15.55.
Calls with increasing volume at CBOE;
C 3/16/2013 40 16K contracts
FB 11/17/2012 24K 12K
BAC 10/12/2012 9.5 11K
APC 1/19/2013 80 10K
AAPL 10/12/2012 640 9K
WFC 10/12/2012 37 9K
QQQ 10/20/2012 67 8K
SBUX 1/18/2014 45 8K
FXI 12/22/2012 35 8K
U.S. stocks are mixed on China economic growth concerns. Costco with a positive earnings surprise. BAE / EADS merger not going to happen.