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