Blogging Options: Morning Update 4.26.13

Volatility as an asset class

Coinstar (CSTR) is recently up $4.59 to $59.62 in the premarket after the Redbox-DVD-rental company reported better than expected Q1 results. Overall option implied volatility of 42 is above its 26-week average of 38.

Starbucks (SBUX) is recently down $1.35 to $59.15 in the premarket after announcing a Q1 profit increase of 26%. May call option implied volatility is at 30, June is at 23; compared to its 26-week average of 26.

Baidu (BIDU) is recently down $7.64 to $84.70 in the premarket after the Chinese Internet-search company Q1 earnings increased 8.5%. Overall option implied volatility of 43 is above its 26-week average of 37.

Amazon.com (AMZN) is recently down $6.89 to $268.25 in the premarket after the internet conglomerate reported Q1 revenue increased 22%. Overall option implied volatility of 37 is above its 26-week average of 32.

VIX methodology for iShares Silver Trust (VXSLV) closed at 33.64; above its 50-day moving average of 27.37.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 40.40, above its 50-day moving average of 32.53.

Options expected to be active on open; AAPL BIDU CRUS SBUX CSTR FSL JCP AMZN EXPE‏

CBOE S&P 500 BuyWrite Index (BXM) closed at $956.88; above its 10-day moving average of 949.17 and above its 50-day moving average of 938.35. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 13.62, below its 10-day moving average of 14.74, and its 50-day moving average of 13.75. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 33c to $158.19 after a five-day winning streak.

Calls with increasing volume at CBOE:

AET 1/18/2014 60 7K contracts
QQQ 6/22/2013 72 6K
SPY 4/26/2013 158 3K
PSX 5/18/2013 62.50 2K

Puts with increasing volume at CBOE:

RCL 6/22/2013 36 3K contracts
SPY 5/3/2013 158 3K
QQQ 5/3/2013 67.50 3K
UAL 9/21/2013 30 3K
TSO 4/26/2013 55 2K
IWM 4/26/2013 93 2K

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