Volatility as an asset class
Vodafone (VOD) is up $2.25 to $31.66 in early trading after confirming it’s in talks with Verizon (VZ) to sell its 45% stake in their joint venture, Verizon Wireless. Overall 26 option implied volatility is near its 26-week average 25.
Verizon is up $1.53 to $48.09. Overall option implied volatility of 19 is near its 26-week average of 18.
Guess (GES) is up $3.34 to $30.70 after the clothing retailer reported better than expected Q2 earnings. September call option implied volatility is at 55, October and December is at 40; above its 26-week average of 37.
Fresh Market (TFM) is down $4.28 to $50 after the specialty grocer lowered its full-year per share guidance. Overall option implied volatility of 38 is near its 26-week average of 37.
Options expected to be active @ CBOE; VZ VOD T FB TSLA WSM GES
CBOE S&P 500 BuyWrite Index (BXM) closed at $946.70, below its 50-day moving average of 955.03. www.cboe.com/BXM
CBOE Volatility Index (VIX) down 0.20 to 16.29, above its 10-day moving average of 15.20 and its 50-day moving average of 14.63. www.cboe.com/VIX
Calls with increasing volume at CBOE:
XLF 10/19/2013 20 36K contracts
SPY 9/30/2013 168 29K
NOK 1/17/2015 7 17K
TIF 9/21/2013 85 15K
CAT 1/18/2014 92.50 7K
Puts with increasing volume at CBOE Wednesday:
SPY 9/30/2013 154 13K
AAPL 8/30/2013 490 8K
VIX off slightly, SPDR S&P 500 ETF Trust (SPY) is up $0.40 to $164.33 on signal that an expected Western military strike on Syria could be postponed. Q2 GDP revised higher (with help from Net Trade) but key components revised lower. Weekly claims a push. Crude off slightly, GLD off $0.95. 10-year 2.79%.