Blogging Options: CBOE Morning Update 5.20.13

Volatility as an asset class

Yahoo (YHOO) is recently down 23c to $26.29 in the premarket after the internet portal purchased blogging startup Tumblr for $1.1B, reportedly all cash.  Overall option implied volatility of 29 is near its 26-week average of 28.

General Electric (GE) is up $0.8 to $23.54 in the pre-market on plans to return $18B to holders. Overall option implied volatility of 20 is near its 26-week average of 21.

Warner Chilcott (WCRX) is up $0.42 to $19.63 in the pre-market on Actavis (ACT) acquiring the company in an $8.5B stock-for-stock transaction. Overall option implied volatility of 54 is above its 26-week average of 37.

Websense (WBSN) is higher by $5.76 to $24.99 in the premarket on being acquired by Vista Equity for $24.75 per share. Overall option implied volatility of 29 is below its 26-week average of 36.

VIX methodology for iShares Silver Trust (VXSLV) closed at 38.88; above its 50-day moving average of 29.94.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 43.55, above its 50-day moving average of 36.30.

Options expected to be active on open at CBOE; BP AU BAC ACT WCRX YHOO ZNGA

CBOE S&P 500 BuyWrite Index (BXM) closed at $966.18; above its 10-day moving average of 962.87 and above its 50-day moving average of 949.62. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 12.45, below its 10-day moving average of 12.75, and below its 50-day moving average of 13.33. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 23c to $166.71 after markets closed at record highs for the fourth straight week.

Calls with increasing volume at CBOE:

XRT 6/22/2013 81 68K contracts
SPY 5/18/2013 160 37K
EFA 6/22/2013 63 21K
CSCO 1/18/2014 22 20K
QQQ 5/18/2013 68 19K

YHOO Press release is a hoot.  They promise to not s…. up the deal for Tumblr!  Look it up.
Dallas FED Pres. Fisher whispering about FED easing QE some time in the future being watched by traders and investors..
Foreign markets mixed, as are grains.  Rain in western areas welcome but in eastern midwest a little much, too soon.
Slow day for economic numbers, May option expiration was last Friday. Go BlackHawks