Blogging Options: CBOE Morning Update

Volatility as an asset class

Apple (AAPL) is up $5.66 to $582.90 in the premarket after selling 3MiPads in three days. Overall option implied volatility of 33 is above its 26-week average of 30.

BioMarin (BMRN) is up $10.60 to $48 in the premarket after Phase III study meets primary endpoint. Overall option implied volatility of 113 is above its 26-week average of 55.

Walgreen (WAG) is down 23c to $34.66 after reporting October SSS fell 5.9%. Overall option implied volatility of 20 is below its 26-week average of 24.

CBOE Volatility Index (VIX) closed at 17.59, below its 10-day moving average of 17.81 and above its 50-day MA of 16.04.

Calls with increasing volume at CBOE;

BAC 1/19/2013 10 31K contracts
SPY 11/2/2012 142 18K
AAPL 11/2/2012 595 10K
C 11/17/2012 39 10K
QQQ 11/2/2012 65 9K

U.S. stocks are mixed as European and Asian stocks trade lower into Tuesday’s Presidential election. Spanish unemployment up and bond rate rises. TWC earnings up but missed street estimates, off $4 in pre-market..

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