Blogging Options: CBOE Morning Update

Volatility as an asset class

Apple (AAPL) is up $2.00 to $611.54 in the premarket on Q4 earnings rising 24% and conservative guidance. Overall option implied volatility of 43 is above its 26-week average of 30. The AAPL Weeklys 605 Straddle was trading near $33 at the close yesterday.

Amazon.com (AMZN) is up $3.47 to $226 in the premarket after the company posted its first quarterly loss in nearly a decade. Overall option implied volatility of 56 is above its 26-week average of 36.

Coinstar (CSTR) is down $3.18 to $40.05 in the premarket after the company lowered its outlook for profit this year.

Expedia (EXPE) is up $8.50 to $59.75 in the premarket after the internet travel agent reported better than expected Q3 results and raised its forecast.

CBOE Volatility Index (VIX) closed at 18.12. VIX closed above its 10-day moving average of 16.65 and 50-day MA of 15.67.

U.S. stocks are trading lower on corporate revenue growth weakness, but cut some of the losses after the GDP Report. 3Q GDP was announced at a 2% rate, up from the 1.3% Q2 and slightly above expectations. Government spending was up over 9%. The Equipment and Software Spending component was flat at 0%. Personal Consumption at 2% missed expectations by a tick.