Volatility as an asset class
Microsoft (MSFT) is down $1.08 to $29.20 in the premarket after being downgraded to Sell from Neutral at Goldman Sachs. Overall option implied volatility of 20 is near its 26-week average of 21.
Costco (COST) is up $0.94 to $106.69 in the premarket after the retailer reported March revenue up 7% to $9.67B vs. $9.07B last year. Overall option implied volatility of 17 is below its 26-week average of 18.
Pier 1 Imports (PIR) is off $1.05 to $22,29in the premarket into the home furnishing retailer seeing FY14 EPS $1.26-$1.31, compared to consensus $1.38. April call option implied volatility is at 45, May is at 34, June is at 32; compared to its 26-week average of 34.
Yum! Brands (YUM) is down $1.95 to $64.81 in the premarket after reporting its China division same-store sales were down 13%. Overall option implied volatility of 28 is above its 26-week average of 26.
Options expected to be active on open; MSFT FTNT COST YUM GOOG FB JCP AAPL JPM WFC
CBOE S&P 500 BuyWrite Index $BXM @ 951.34, 50-day MA is 932.96. www.cboe.com/BXM
CBOE Volatility Index (VIX) closed at 12.36, below its 10-day moving average of 13.26, and its 50-day moving average of 13.53. www.cboe.com/VIX.
Calls with increasing volume at CBOE:
FXI 4/20/2013 37.50 39K contracts
IWM 6/22/2013 98 35K
BAC 1/17/2015 12 21K
SPY 4/20/2013 158 21K
VXX 5/18/2013 28 11K
S 5/18/2013 10 10K