Blogging Options: CBOE Morning Update

Volatility as an asset class

Research in Motion (RIMM) is up $0.05 to $14.19 in the premarket as the company begins BlackBerry 10 ‘by invitation’ beta test. Overall option implied volatility of 81 is above its 26-week average of 66.

Apple (AAPL) is down $1.56 to $508.50 in the premarket after the company was downgraded to Neutral from Buy at Citigroup. Overall option implied volatility of 39 is above its 26-week average of 32.

AIG (AIG) is up $0.66 to $34.02 in the premarket after announcing plans to sell all of its shares in AIA Group LTD for as much as $6.5B in the third offering this year. Overall option implied volatility of 28 is below its 26-week average of 31.

CBOE Volatility Index (VIX) closed at 17, above its 10-day moving average of 16.38, and 50-day moving average is 16.59.

Calls with increasing volume at CBOE;

QQQ 2/16/2013 68 28K contacts

SPY 12/14/2012 142 16K

AAPL 12/14/2012 515 13K

MU 12/22/2012 7 13K

AAPL 12/14/2012 510 13

XLF 12/14/2012 16 10K

SPDR S&P 500 ETF Trust (SPY) is recently up 61c to $142.71 in the premarket as the Nikkei 225 Stock Average rose to the highest level in eight months after the Liberal Democratic Party returned to power.

Empire State business activity misses for 5th straight month.