Blogging Options: CBOE Morning Update

Volatility as an asset class

Google (GOOG) continues lower, now down 8 points to $777 on Chairman Eric Schmidt plans to sell 3.2M shares of company. Overall option implied volatility of 21 is below its 26-week average of 26.

Apple (AAPL) rallied from a $2 drop pre-market to tack on a 6 point gain to $481 on media reports the company is experimenting with designs for a watch-like device that would perform some functions of a smart phone (Dick Tracy to you oldtimers). Overall option implied volatility of 29 is below its 26-week average of 32.

Celgene (CELG) is back to unchanged after an almost $2 rally pre market. The biopharmaceutical company said Revlimid for relapsed or refractory multiple melanoma was granted full approval by China SFDA. Overall option implied volatility of 29 is near its 26-week average.

CBOE China ETF Volatility Index (VXFXI) closed at 19.41, near its 10-day moving average of 19.89 and below its 50-day moving average of 21.66. www.cboe.com/VXFXI

CBOE Volatility Index (VIX) closed at 13.02, below its 10-day moving average of 13.67, and its 50-day moving average of 15.16. It is currently up 0.29 to 13.31.

Calls with increasing volume at CBOE:

SPY 2/8/2013 152 41K contracts
NXY 2/16/2013 27 18K
AAPL 2/8/2013 480 17K
BYD 2/16/2013 8 12K

 

SPDR S&P 500 ETF Trust (SPY) is off $0.30 16c to 151.55 as European stocks fell with Italian and Spain bond price weakness.
Asia quiet with Lunar New Year (Year of the Snake is supposedly not good for investors), Pope resignation also in news this morning.
February VIX Expiration Wednesday the 13th.