Blogging Options: CBOE Morning Update

Volatility as an asset class

Williams-Sonoma (WSM) is trading up $2.54 to $47.65 in the premarket after the housewares and furniture company announced Q4 earnings rose 9.1%. April call option implied volatility is at 31, May is at 29, August is at 27; compared to its 26-week average of 30.

Adobe (ADBE) is up $2.25 to $43 in the premarket on recurring Q1 revenue climbing 31% as creating and marketing tools attracted new customers. April call option implied volatility is at 26, July is at 22; compared to its 26-week average of 26.

Cintas (CTAS) is toff $1.23 to $44.68 in the premarket after the supplier of uniforms and restroom supplies saying Q3 earnings fell 1.7%. Overall option implied volatility of 22 is near its 26-week average of 22.

Mini-options trading at CBOE; AAPL7, AMZN7, GOOG7, GLD7 and SPY7. Volume has been very good.

CBOE S&P 500 BuyWrite Index (BXM) closed at $935.70; below its 10-day moving average of 937.73 and above its 50-day moving average of 925.43. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 14.39, above its 10-day moving average of 12.51, and its 50-day moving average of 13.51. www.cboe.com/VIX.

SPDR S&P 500 ETF Trust (SPY) is up $0.69c to $155.30 after European shares rose on hopes that European policymakers would make sure the crisis in Cyprus does not spread to other countries.

Calls with increasing volume at CBOE:

  • MU 4/20/2013 10 21K contracts
  • MSFT 5/18/2013 30 21K
  • SPY 6/22/2013 170 20K
  • BAC 4/20/2013 13 10K
  • F 3/28/2013 13 9K
  • GLD 6/22/2013 170 9K

Fed-Ex (FDX) shower revenues beat but EPS light, $1.23 per share vs. 1.37 expected. FDX is off $4, which could weigh on the market today. They also cut guidance $0.20 to $0.40.

March VIX settlement price coming shortly.