Blogging Options: CBOE Morning Update

Volatility as an asset class

Yum! Brands (YUM) is down $3.25 to $64.64 after lowering its China SSS guidance to down 6% from down 4%. Overall option implied volatility of 25 is below its 26-week average of 27.

Monsanto (MON) is up $2.96 to $98.96 in the premarket after the company raised ongoing earnings per share guidance to $4.30 to $4.40. Overall option implied volatility of 24 is near its 26-week average.

Panasonic (PC) closed at $6.10 into Kazuhiro Tsuga, President, keynote address at day two of the International CES on January 8. Overall option implied volatility of 41 is near its 26-week average of 40.

CBOE S&P 500 BuyWrite Index (BXM) closed at 915.34, above its 10-day moving average of 904.91 and its 50 day moving average of 904.73.

CBOE Volatility Index (VIX) closed at 13.79, below its 10-day moving average of 17.29, and its 50-day moving average of 16.89.

SPDR S&P 500 ETF Trust (SPY) is recently trading mixed to lower in the premarket into Alcoa (AA) earnings report.

Calls with increasing volume at CBOE;

SLV 3/16/2013 34 20K contracts
BAC 1/19/2013 12.5 13K
EEM 1/19/2013 45 9K
XLF 2/16/2013 17 7K
SPY 1/19/2013 149 5K
INTC 1/19/2013 22.5 5K

European stocks modestly higher on no volume. BA off 1% pre-market after another Dreamliner problem. Alcoa reports after the close.

Hug an Irish person today.