Blogging Options: CBOE Morning Update

Volatility as an asset class

3M Company (MMM) is off $0.25 to $89.13 in the premarket following a brief rally. The company targeting 9%-11% EPS growth over five years. Overall option implied volatility of 19 is near its 26-week average.
 
McDonald’s (MCD) is down 69c to $86.17 in the premarket on October global comparable sales decreasing 1.8%. Overall option implied volatility of 17 is near its 26-week average.

Kellogg (K) is down 26c to $53.90 in the premarket after reaffirming 2012 guidance and issuing preliminary 2013 guidance. Overall option implied volatility of 14 is near its 26-week average.

Dillard’s (DDS) is recently up $4.00 to $84.81 in the premarket after reporting Q3 adjusted EPS 96c. Overall option implied volatility of 42 is near its 26-week average.

Calls with increasing volume at CBOE;

XLE 6/22/2013 80 29K contacts

SPY 11/9/2012 142 21K

BAC 1/19/2013 10 18K

F 1/18/2014 10 10K

QQQ 11/17/2012 67 9K

U.S. stocks are trading higher in the premarket a day after the market sold off to three-month lows. Asian stocks are down big, playing catch-up to the U.S, European stocks up slightly. ECB kept rates unchanged, Greek unemployment rising again. Weekly claims were lower but Hurricane Sandy pushed claims into future weeks. AAPL up $4 pre-market.

CBOE Volatility Index-VIX closed at 19.08, 10-day moving average is 17.94, and 50-day moving average is 16.18.

See the blog articles last night and this morning by Matt Moran and Russell Rhoads about SPX and VIX futures activity.