Blogging Options: CBOE Morning Update

Volatility as an asset class

iShares MSCI Japan Index Fund (EWJ) is up $0.24 to $9.78 in the premarket on Japan Prime Minister Abe saying bold monetary policy will be accompanied by flexible fiscal policy and a growth strategy to encourage private investment, while pursuing welfare and sales tax reforms. Overall option implied volatility of 21 is near its 26-week average.

Netflix (NFLX) is off $0.44 pre-market, said it restored streaming video services after an outage triggered by technical issues. Overall option implied volatility 54 near its 26-week average of 56.

Starwood Hotels (HOT) closed at $57.28 into the company seeing having opened 71 new hotels by end 2012. Overall option implied volatility of 29 is below its 26-week average of 34.

CBOE Volatility Index-VIX closed at 17.84, above 10-day moving average of 16.76, and its 50-day moving average is 16.77.

Calls with increasing volume at CBOE;

SPY 12/28/2012 145 43K contracts

XLF 2/16/2013 17 9K

BAC 12/28/2012 11.5 7K

F 1/4/2013 13 4K

MU 1/19/2013 7.5 3K

SPDR S&P 500 ETF Trust (SPY) is recently up $0.19 to $142.54 in the premarket on budget discussions. U.S. markets have lost ~1.3% in the last several sessions and hope to gain some back today. Case-Schiller Home Sales at top of the hour should give markets some direction this morning. Herbalife (HLF), $26.56 is up $0.50 pre-market, and has lawyered up in it’s dispute with Mr. Ackerman. Retailers will be randomly talking about holiday sales the balance of the week.