Blogging Options: CBOE Morning Update

Volatility as an asset class

Facebook (FB) is trading up $4.70 to $24.25 in the premarket on better than expected mobile advertising results. Overall option implied volatility of 58 is above its 26-week average of 56.

Netflix (NFLX) down $11.21 to $57.01 in the premarket after reporting an 88% decline in Q3 net income. Overall option implied volatility of 62 is near its 26-week average of 61.

AT&T (T), after an initial pop higher, is flat in the premarket after reports Q3 adjusted EPS 62c, consensus 60c. Overall option implied volatility of 21is above its 26-week average of 18.

Bristol-Myers (BMY) is down 74c to $32.50 in the premarket after reporting Q3 adjusted EPS 41c, consensus 42c. Overall option implied volatility of 20 is near its 26-week average of 19.

Boeing (BA) is up $2.19 to $75 in the premarket after reporting Q3 continuing ops EPS $1.35, consensus $1.12. Overall option implied volatility of24 is near it 26-week average.
 
CBOE Volatility Index (VIX) closed at 18.83, above its 10-day moving average of 16.11 and 50-day MA of 15.53.

 
Calls with increasing volume at CBOE;

SPY 10/26/2012 142 19K

PBR 12/22/2012 23 15K

SPY 10/26/2012 143.5 13K

NOK 1/18/2014 3 12K

ETFC 1/17/2015 17 10K

U.S. stocks are mixed to higher in the premarket on better than expected financial results. Dow Chemical restructuring also helping averages pre-market.