Blogging Options: CBOE Morning Update 7.1.13

Volatility as an asset class

Onyx Pharmaceuticals (ONXX) is up $44.18 to $131 in the premarket after rejecting an unsolicited proposal from Amgen (AMGN) to acquire all of Onyx’s outstanding shares for $120 per share in cash.  Overall option implied volatility of 41 is near its 26-week average of 39.

Nokia (NOK) is higher by $0.27 to $4.01 in the premarket after acquiring Siemens (SI) stake in Nokia Siemens Networks for EUR 1.7B. Overall option implied volatility of 55 is below its 26-week average of 62.

Blackberry (BBRY) is down $0.50 to $9.96 in the premarket after last week’s uncertain outlook following the company’s Q4 results. Overall option implied volatility of 54 is below its 26-week average of 69.

VIX methodology for Apple $VXAPL closed at 30.18, above its 50-day moving average of28.85 www.cboe.com/VXAPL

CBOE Interest Rate 5 Year Note (FVX) closed at 13.85, above its 50-day moving average of 9.54.

VIX methodology for iShares Silver Trust (VXSLV) closed at 46.26; above its 50-day moving average of 37.56.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 53.26, above its 50-day moving average of 43.42.

CBOE S&P 500 BuyWrite Index (BXM) closed at $946, below its 10-day moving average of 947.73 and its 50-day moving average of 957.28. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 16.86, below its 10-day moving average of 17.89, and above its 50-day moving average of 15.06. www.cboe.com/VIX

Calls with increasing volume at CBOE:

SPY 6/28/2013  161  36K contracts
IWM 12/31/2013 105 12K
AAPL 6/28/2013 400 12K
BAC 7/5/2013    13    11K
VXX 8/2/2013    28     10K

SPDR S&P 500 ETF Trust (SPY) is recently up $0.69 to $161.11 into Friday’s June employment report. Economic news in England small positive, Asian news mixed.  Hong Kong closed for holiday, MMM lowered to hold by one firm may weigh on DJIA.  Holiday trading in US ahead?