Blogging Options: CBOE Morning Update

Volatility as an asset class – Retailers in the news.

Wal-Mart (WMT) is down $2.16 to $69.15 in the premarket following weaker than expected same-store-sales growth and missing on top line.. Overall option implied volatility of 18 is near its 26-week average.

Target (TGT) is up $0.67 to $62.05 on Q3 earnings rising 15% on better than expected revenue. Overall option implied volatility of 22 is above its 26-week average of 20.

Dollar Tree (DLTR) is up $1.81 to $39.57 on the discount retailer seeing Q4 EPS 97c-$1.02, compared to consensus 98c. Overall option implied volatility of 36 is above its 26-week average of 30.

CBOE Volatility Index (VIX) closed at 17.92, above its 10-day moving average of 17.76, and its 50-day moving average of 16.19.

Calls with increasing volume at CBOE;

SPY 3/16/2013 150 45K contracts

CLWR 1/19/2013 2.5 19K

CSCO 2/16/2013 19 15K

FXI 12/22/2012 38 13K

SPDR S&P 500 ETF Trust (SPY) is recently down 0.1% in the premarket after a trio of economic reports. 

The October CPI rose 0.1% (+0.6% Sept). Core Rate was a gain of 0.2%.

Initial Claims jumped to 439k, a gain of 78k from the 371k last week. This raised the -week average to 383k. Hurricane Sandy a contributor.

Empire State Manufacturing off 5.22% in Nov (-6.16 Oct), slightly better than expected.

European and Asian stocks in the red, talk of “negative rates” in Japan to boost their economy.