Blogging Options: CBOE Morning Update

Volatility as an asset class

Yum! Brands (YUM) is down $4.19 to $59.74 in the premarket as the fast-food chain said its no longer expects earnings-per-share growth this year. Sales in China were dismal, Comps off over 20%. Overall option implied volatility of 26 compares to its 26-week average of 27.

Hologic (HOLX) closed at $23.25 into the health-products company reporting in line Q1 results and Q2 guidance below consensus. Overall option implied volatility of 27 is below its 26-week average of 31.

Baidu (BIDU) is off $6.45 to $100.75 in the premarket after the Chinese internet company reported Q4 results rose 36%. Overall option implied volatility of 43 is near its 26-week average of 44.

CBOE DJIA BuyWrite Index (BXD) closed at 236.54, above its 10-day moving average of 236.33 and its 50-day moving average of 232.80. www.cboe.com/BXD

CBOE Volatility Index (VIX) closed at 14.67, above its 10-day moving average of 13.35, and its 50-day moving average of 15.32.

Calls with increasing volume at CBOE:

SPY 2/16/2013 152 19K contracts
MMR 2/16/2013 15 16K
ALL 2/16/2013 45 10K
DELL 3/16/2013 14 8K

SPDR S&P 500 ETF Trust (SPY) is recently up $0.80 to 150.33 in the premarket. 10-year bond yield at 2.01%.

Mastercard doubles dividend, raises buy-back and is up $6.50 to $520.72 in pre-market. RIMM (BBRY) says no BB 10’s in US for next 45 days. DELL ($13.27) – news today?