Blogging Options: CBOE Morning Update

Volatility as an asset class

Microsoft (MSFT) is down $0.16 to $28.40 in the preopen after being downgraded to Neutral from Buy at BofA/Merrill.  April call option implied volatility is at 24, May is at 23, June is at 19; compared to its 26-week average of 21.

Compuware (CPWR) is off $0.43 to $11.60 after the software and services company provided a preliminary Q4 and FY13 view that fell short of current estimates. Overall option implied volatility of 36 is near its 26-week average of 34.

Hawaiian Airlines (HA) closed at $5.29 into announcing March traffic rose 23.8% with capacity up 29.3%.  Overall option implied volatility of 41 is near its 26-week average of 40.

Options expected to be active on open; ZNGA FB MSFT BAC AA NFLX

CBOE S&P 500 BuyWrite Index (BXM) closed at $941.32; below its 10-day moving average of 941.66 and above its 50-day moving average of 930.44. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 14.21, above its 10-day moving average of 13.31, and its 50-day moving average of 13.49. www.cboe.com/VIX.

CBOE VIX futures April at 14.65, June at 16.50 August at 17.90, December at 19.50.

Calls with increasing volume at CBOE:

HSH 7/20/2013 39 24K contracts
SPY 4/20/2013 158 19K
IWM 5/18/2013 98 15K
BAC 4/5/2013 12 10K
GLD 7/20/2013 175 10K

S&P 500 futures have given up early gains, but still up fractionally in the premarket as Japan boosts bond buying.  Weekly Claims a stunner, at 385k.  350k-355k was expected.  This also tempering mood of bulls.

Big jobs report tomorrow.