Blogging Options: CBOE Morning Update

Volatility as an asset class

Adobe (ADBE) is up $1.89 to $37.42 in the premarket after reporting Q4 earnings rose 28% as subscriptions for creative services grew better than expectations on lower than expected overhead costs. Overall option implied volatility of 44 is above its 26-week average of 31.

VeriFone (PAY) is down $2.17 to $31.05 after the electronic-payments company reported Q4 profits decreased 86%. Overall option implied volatility of 52 is above its 26-week average of 46.

United Technologies (UTX) is off $0.87 to $79.50 in the premarket on the company expecting a 10% to 16% rise in earnings per share and a 10% to 12% rise in sales in 2013.

CBOE Volatility Index (VIX) closed at 16.54, above its 10-day moving average of 16.26, and at its 50-day moving average of 16.54.

Calls with increasing volume at CBOE;

HPQ 12/22/2012 15 21K contracts
MSFT 12/22/2012 28 19K
SPY 12/22/2012 146 15K
SIRI 12/22/2012 3 10K
AAPL 12/14/2012 540 9K
SYMC 1/19/2013 20 9K
F 1/19/2013 12.5 8K

SPDR S&P 500 ETF Trust (SPY) is up 0.6c to $142.69 in the premarket following a pick up in China’s flash manufacturing PMI to 50.9, a 14-month high.

November CPI off 0.3%, November Core CPI (x-food & energy) up 0.1%. European markets mixed on light volume. Industrial Production and Cap. Util. later this morning. Another Facebook lockup ends today with 156 million shares free to trade. Tepid response to AAPL i-phone 5 release in China may account for 10 point selloff in the pre-market.