Volatility as an asset class
First Solar (FSLR) is up $7.75 to $58 after the solar-panel maker reported Q3 profit more than doubled. November weekly call option implied volatility is at 209, November and December is at 74, January is at 63; compared to its 26-week average of 58.
AIG (AIG) is down $3.25 to $48.40 in the premarket after the insurer reported Q3 net income rose 17% to $2.17B. Overall option implied volatility of 36 is above its 26-week average of 26.
Newmont Mining (NEM) is off $1.00 to $26.26 after the world’s second-biggest gold producer reported a 11% increase in Q3 profit. November weekly call option implied volatility is at 69, December is at 40, January and March is at 38; compared to its 26-week average of 39.
Options expected to be active @ CBOE; AAPL GOOG ABX TSLA FB
CBOE S&P 500 BuyWrite Index (BXM) is higher by $1.70 to $989.60, above its 50-day moving average of 965.26. www.cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) is up $0.75 at 247.38, above its 50-day moving average of 243.19. http://www.cboe.com/micro/bxd/
CBOE Volatility Index (VIX) is off 0.41 to 13.34, near its 10-day moving average of 13.33 and below its 50-day moving average of 15.17. www.cboe.com/VIX
SPDR S&P 500 ETF Trust (SPY) was up $0.60 in early trading to $176.39 in spite of losses in European and Asian stocks.
Calls with increasing volume Friday at CBOE:
SPY 12/19/2015 145 38K contracts
PBR 11/16/2013 17 20K
FB 11/1/2013 50 11K
LCC 12/21/2013 23 9K
BX 3/22/2014 26 9K
Option volume Thursday was pretty average, CBOE traded 4m+ of the 16m contracts traded. Economic numbers don’t line up this morning, as the PMI dropped a point while ISM showed a small increase. Traders so far like what they see, as DJIA up 90 points and SPX up 7 points. 10-year climbs to 2.58%.