Blogging Options: CBOE Morning Update 5.6.13

Volatility as an asset class

Berkshire Hathaway (BRK.B) is up $2.26 to $110.90 in the premarket after reporting a Q1 profit increase of 51% on better than expected results at its insurance operations and railroad operations. Overall option implied volatility of 17 is near its 26-week average of 16.

Tyson (TSN) is down $1.42 to $23.51 in the premarket after the meat processors Q2 earnings fell 43%. Overall option implied volatility of 24 it’s near its 26-week average of 25.

Proshares Ultra Short 20 Year Treasury ETF (TBT) is higher by 14c to $61.49 in the premarket. Overall option implied volatility of 23 is near its 26-week average of 25.

VIX methodology for iShares Silver Trust (VXSLV) closed at 32.09; above its 50-day moving average of 28.34.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 38.62, above its 50-day moving average of 34.19.

Options expected to be active on open; BAC TSN INTC BMC AAPL YHOO DELL

CBOE S&P 500 BuyWrite Index (BXM) closed at $960.86; above its 10-day moving average of 957.56 and above its 50-day moving average of 942.41. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 12.85, below its 10-day moving average of 13.60, and its 50-day moving average of 13.78. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 3c to $161.33 in the premarket as the S&P is recently up 13% so far this year.

Calls with increasing volume at CBOE:

QQQ 5/31/2013 74 77K contracts
SPY 6/22/2013 162 20K
CLWR 12/21/2013 410K
AAPL 5/3/2013 450 9K

Overseas markets quiet.