Blogging Options: CBOE Morning Update

Volatility as an asset class

Walgreen (WAG) is down $0.58 to $36.97 after the drugstore chain reported Q1 earnings decreased 25%, partly due to acquisition costs and declining same-store sales. Overall option implied volatility of 26 is above its 26-week average of 23.

Research in Motion (RIMM) is off $1.88 to $12.24 in the premarket on concerns the company will not receive monthly services revenues for some subscribers. Overall option implied volatility of 83 is above its 26-week average of 67.

Nike (NKE) is up $2.90 to $101.90 in the premarket after reporting Q2 EPS of $1.14, compared to consensus $1.00. Overall option implied volatility of 30 is above its 26-week average of 26.

CBOE S&P 500 BuyWrite Index (BXM) opened 904.16, high 904.49, low 903.58, closed 904.13.

CBOE Volatility Index (VIX) closed at 17.67, above its 10-day moving average of 16.39, and its 50-day moving average of 16.69.

Calls with increasing volume at CBOE;

EEM 3/16/2013 47 80K contracts

XLU 12/22/2012 35 32K

BAC 2/16/2013 12 26K

SPY 12/22/2012 145 21K

QQQ 1/19/2013 67 19K

XLF 1/18/2014 20 11K

SPDR S&P 500 ETF Trust (SPY) is recently down $2.69 to $142.43 in the premarket after House republican leaders canceled a vote for high income earners.

November Personal Income rose 0.6%, Spending was up 9.4%. November Durable Goods orders rose 0.7%, a good number but lower than October.

Triple Witch today.