Blogging Options: CBOE Morning Update

Volatility as an asset class

Costco (COST) is up $1.00 to $99.31 in the premarket after reporting Q1 EPS 95c, compared to analyst consensus of 93c. Overall option implied volatility of 23 is above its 26-week average of 20.

Joy Global (JOY) is down $0.38 to $57.49 in the premarket after the heavy-duty mining equipment maker reported Q4 earnings rose 23%. For fiscal 2013, the company guided per-share earnings lower. Overall option implied volatility of 48 is above its 26-week average of 46.

DuPont (DD) is up $1.11 to $44.80 in the premarket after saying it sees FY12 EPS at high end of previous guidance range. Overall option implied volatility of 21 is below its 26-week average of 23.

CBOE Volatility Index (VIX) closed at 15.57, below its 10-day moving average of 16.07, and its 50-day moving average of 16.52.

Calls with increasing volume at CBOE;

EEM 3/16/2013 46 18K contracts

INTC 12/22/2012 21 13K

SPY 12/22/2012 145 11K

IWM 1/4/2013 86 7K

AAPL 12/14/2012 550 7K

SPDR S&P 500 ETF Trust (SPY) is recently up 0.57 to $144.01 in the premarket into the release of the Fed’s statement at the conclusion of the FOMC meeting (11:30am CST). FB into the NASDAQ 100 this morning. European stocks up, Ag’s lower. Nov. Import prices slightly lower.