Blogging Options: CBOE Morning Update

Volatility as an asset class

Medtronic (MDT) $45.43, off $1.69 after the medical device manufacturer backing 2013 revenue growth view of 3%-4%. Overall option implied volatility of 25 is above its 26-week average of 21.

Office Depot (ODP) is expected to open higher following reports the company is in advanced merger talks with OfficeMax (OMX). Overall option implied volatility of 63 is near its 26-week average.

General Mills (GIS) closed at $44.59 is now up $0.35 to $44.94 into the packaged-food maker expecting high single digit EPS growth in FY14, compaerd to consensus $2.90 and return more cash to shareholders in 2014. Overall option implied volatility of 13 is near its 26-week average.

CBOE Interest Rate 5 Year Note (FVX) closed at 8.65, above its 50-day moving average of 7.75 into the release of the Fed’s latest policy meeting minutes on February 20.

CBOE Volatility Index (VIX) closed at 12.46, below its 10-day moving average of 13.20, and its 50-day moving average of 14.83.

SPDR S&P 500 ETF Trust (SPY) is recently up $0.33 to 152.43 in the premarket as German investor confidence increased to its highest level in three years.

Calls with increasing volume at CBOE:

SPY 2/16/2013 152 51K contracts
DIA 3/16/2013 141 26K
XLB 3/16/2013 40 24K
BAC 2/16/2013 12 19K
LCC 9/21/2013 15 15K
MET 3/16/2013 35 14K

If you’re in New York City, stop by the Marriott Marquis today for Traders Expo. The CBOE will have Jim Bittman and Russell Rhoads available to answer your trading and investing questions.