Volatility as an asset class
Zillow (Z) is down $6.06 to $28.30 in the premarket after the real-estate information provider lowered into Q4 outlook. Z was down 5% yesterday. Overall option implied volatility of 61 is above its 26-week average of 55.
Express Scripts (ESRX) is down $8.03 to $54.86 in the premarket after the pharmacy-benefit manager lowered financial guidance. Overall option implied volatility of 28 is near its 26-week average of 27.
Weight Watchers (WTW) is up $5.37 to $52.85 following the weight-management service provider reporting Q3 revenue $430.6M, consensus $418.6M. Overall option implied volatility of 60 is above its 26-week average of 43.
CBOE Volatility Index-VIX closed at 18.42, 10-day moving average is 17.99, and 50-day moving average is 16.11.
Calls with increasing volume at CBOE;
SPY 11/17/2012 149 22K contracts
SLV 3/16/2013 50 15K
HOV 5/18/2013 4.5 10K
BAC 11/17/2012 10 9K
MRO 11/17/2012 31 9K
XLF 12/22/2012 17 8K
HES 11/17/2012 57.5 7K
S&P futures are up 4.50 from previous day’s close. German and Japanese economies slowed, AAPL lost a lawsuit against Motorola Mobility after the close. AAPL up 4 pre-market, bouncing off 200 day moving average.
It’s the U.S. elections.