Blogging Options: CBOE Morning Update 8.2.13

Volatility as an asset class

LinkedIn (LNKD) is up $21 to $234 in the premarket after the professional social network company reported Q2 results increased 33%.  Overall option implied volatility of 52 is above its 26-week average of 43.

AIG (AIG) is higher by $2.33 to $49.40 after the insurer announced its resuming a common stock dividend. August weekly call option implied volatility is at 72, September is at 26, November is at 25; compared to its 26-week average of 30.

Weight Watchers (WTW) is down $7.03 to $40 in the premarket on Q2 earnings declining 16%. Overall option implied volatility of 50 is above its 26-week average of 36.

Kraft Foods (KRFT) is  up $0.26 to $57.40 on the food company seeing 2013 EPS with gain $3.40, consensus $2.79. Overall option implied volatility of 20 is above its 26-week average of 18.

Options expected to be active @ CBOE; DELL FB MELI BYD ALUXOM LNKD WTW AIG ABX

CBOE S&P 500 BuyWrite Index (BXM) closed at $964.70, above 50-day moving average of 955.94.

CBOE Volatility Index (VIX) closed at 12.95, above its 10-day moving average of 12.95, and its 50-day moving average of 15.35.

SPDR S&P 500 ETF Trust (SPY) is recently up 3c to $170.69 into the July employment report.

Calls with increasing volume at CBOE:

EEM 8/17/2013 37 21K contracts
SPY 8/2/2013 171 17K
BAC 8/2/2013 15 16K
QQQ 8/17/2013 78 13K
FB 9/21/2013 40 11K

July Non-Farm Payrolls rose 162k (+180k to +185k expected), while the Unemployment Rate 7.4%.  May & June jobs revised slightly lower. June revised from +195k to +188k gains.  Participation rate  moves down 1 tick.  Employment numbers slightly disappointing.