Volatility as an asset class
Onyx Pharmaceuticals (ONXX) is up $6.63 to $123.59 in the premarket on Amgen (AMGN) announcing the purchase of the cancer drug maker for $125 per share in cash. Overall option implied volatility of 48 is above its 26-week average of 37.
Qihoo 360 Technology (QIHU) is higher by $6.90 to $80.03 after the provider of Internet and mobile security products in China reported better than expected Q2 revenue of $151.7M. Overall option implied volatility of 87 above its 26-week average of 50.
States Oil Fund (USO) is up $0.06 to $38 as geopolitical concerns in both Egypt and Syria have kept the price of oil high. Overall option implied volatility of 22 is near its 26-week average of 21.
Options expected to be active @ CBOE; QIHU ABX NEM ONXX FB AMGN TSLA MSFT
CBOE S&P 500 BuyWrite Index (BXM) closed at $953.50, below its 50-day moving average of 956.14. www.cboe.com/BXM
CBOE Volatility Index (VIX) closed at 14.76, above its 10-day moving average of 13.98 and its 50-day moving average of 14.68. www.cboe.com/VIX
Calls with increasing volume at CBOE Friday:
EWZ 9/21/2013 45 22K contacts
IYR 10/19/2013 64 17K
MSFT 9/21/2013 35 15K
SPY 8/23/2013 166.50 13K
VXX 9/27/2013 19.50 10K
FB 8/23/2013 40 10K
SPDR S&P 500 ETF Trust (SPY) is flat $166.62 on the uncertainty over the timing of the Fed’s stimulus tapering. European stocks lower on light trading.
Durable Goods Orders for July cratered, off 7.3%, far worse than the -4% expected. Excluding Aircraft orders dropped 3.3% (slight rise had been anticipated). More economic numbers as we approach Labor Day weekend.