Volatility as an asset class: Markets ignoring Fitch downgrade, hoping for positive news out of Washington.
Yahoo! (YHOO) is up $0.82 to $34.20 in the premarket after reporting Q3 earnings that beat estimates and revenue in-line with expectations. The company gave a Q4 and fiscal-year 2013 revenue outlook below current expectations. October call option implied volatility is at 84, November is at 42, January and April is at 38; above its 26-week average of 32.
Intel (INTC) is down $0.27 to $23.12 after reporting Q3 earnings and revenue that topped estimates, though the company provided Q4 revenue outlook that came in below estimates. November call option implied volatility is at 33, December is at 23, January is at 22; compared to its 26-week average of 24.
CSX (CSX) is trading a few pennies higher to $26.14 into the railroad company reporting Q3 EPS 46c, consensus 43c. November call option implied volatility is at 28, January is at 23; compared to its 26-week average of 25.
Options expected to be active at CBOE; SWK PEP AAPL C YHOO PEP IBM BAC FB INTC
CBOE S&P 500 BuyWrite Index (BXM) closed at $694.54, above its 50-day moving average of 959 03. www.cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) closed at 241.54, near its 50-day moving average of 242.92. http://www.cboe.com/micro/bxd/
CBOE Total Put/Call Ratio 0.99
CBOE Volatility Index (VIX) Put/Call Ratio 0.52
CBOE Index Put/Call Ratio 0.87
CBOE Exchange Traded Products Put/Call Ratio 2.35
CBOE Volatility Index (VIX) closed at 18.66, below its 10-day moving average of 17.72 and above its 50-day moving average of 15.24. www.cboe.com/VIX
Calls with increasing volume at CBOE:
SPY 10/19/2013 171 10K contracts
PBR 10/19/2013 15 9K
INTC 10/19/2013 24 8K
BAC 10/19/2013 14.50 7K
AAPL 10/19/2013 500 7K
BHI 11/16/2013 50 7K
FB 10/19/2013 50 6K
Puts with increasing volume at CBOE:
XLF 12/21/2013 17 59K contracts
SPY 10/25/2013 168 56K
XLB 12/21/2013 37 22K
X 1/18/2014 20 20K
XLI 12/21/2013 41 20K
VXX 11/16/2013 12 17K
Stanley Black & Decker is off $10 to $79.50 on lower guidance. PEP reported higher profits in snack division, up $0.25. SPDR S&P 500 ETF Trust (SPY) is recently is up $0.98 to $171.44 on hopes for a U.S. budget deal to avoid a debt default.