Blogging Options: CBOE Morning Update

Volatility as an asset class

AAPL & NFLX are the stories.

Netflix (NFLX) is up $39.76 to $142.97 in the premarket following the Q4 results on expectations the company can generate strong profit growth domestically, and duplicate the model globally. February call option implied volatility of 79 is above its 26-week average of 65.

Apple (AAPL) is down $50.33 to $463.92 in the premarket following the company’s Q1 results citing the slowdown in iPhone sales and expectations that margins will continue to fall. February call option implied volatility of 42, is above its 26-week average of 32. AAPL upside price target being lowered by Wall Street analysts in droves this morning.

VIX methodology for Apple (VXAPL) closed at 43.84; above 50-day moving average of 38.21.

Mellanox (MLNX) is off $10. t $41.69 in the premarket following the date-storage maker lower future revenue guidance. Overall option implied volatility of 161 is above its 26-week average of 59.

CBOE Volatility Index (VIX) closed at 12.46, below its 10-day moving average of 13.20, and its 50-day moving average is 15.84.

Calls with increasing volume at CBOE;

XLK 2/16/2013 30.0000 41K contracts
SPY 1/25/2013 149 25K
VXX 2/16/2013 32 16K
MPEL 4/20/2013 18 11K
PPG 2/16/2013 180 9K
LCC 2/16/2013 17 9K

SPDR S&P 500 ETF Trust (SPY) is mixed in the premarket as after Apple posted slowing sales. DJIA Futures higher while NASDAQ Futures weaker. Weekly Claims moved lower. European stocks slightly higher, 10-year at 1.84%. Metals lower, Ag Futures off slightly.