Blogging Options: CBOE Morning Update

Options as a volatility class

Home Depot (HD) is up 68c to $53.50 in the premarket on better than expected Q2 results and higher guidance. Overall option implied volatility of 22 is below its 26-week average of 25.

Groupon (GRPN) is down $1.65 to $5.90, slightly below it’s 4:30pm CDT level yesterday, as Q2 sales missing expectations. Overall option implied volatility of 103 is above its 26-week average of 64.

CBOE Volatility Index-VIX closed at 13.69, below its 10-day moving average of 16.20 and its 50-day moving average of 18.58. (Read Bill Luby’s excellent piece on VIX methodology in yesterday’s final CBOE Community blog).

U.S. stocks are mixed to higher in the premarket.

German Consumer Confidence dropped earlier this morning. 

PPI was up 0.3%, Core rate (X-Food & Energy) +0.4%. July Retail Sales +0.8%, Core Rate (X-Autos) +0.9%. PPI slightly better than expected, Retail Sales much better.