Blogging Options: CBOE Afternoon Update

Volatility as an asset Volatility as an asset class

Macy’s (M) is up $1.29 to $43.67 as the retailer trades at a fresh five-year high. April call option implied volatility is at 20, May is at 24, August is at 22; compared to its 26-week average of 26.

Best Buy (BBY) is higher by $2.95 to $24.59 on the company partnering with Samsung to open more than 1,000 Samsung Experience shops within the retailers existing stores. April call option implied volatility is at 45, May is at 42, June is at 43; compared to its 26-week average of 56.

JoS. A. Bank (JOSB) is up $2.92 to $43.21 after the retailer announced earnings that surpassed analyst expectations. May option implied volatility is at 29, July is at 31; compared to its 26-week average of 33.

VIX methodology for Google (VXGOG) up 2.9% to 28.81; above its 50-day MA of 23.70 as GOOG sells off 1.5%.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently up 0.60 to 1269.35, below its 10-day moving average of 1271.65 and above its 50-day moving average of 1245.02.


CBOE Volatility Index (VIX) is recently up 48c to 14.69. VIX April 17 and 29 calls are active on total option volume of 378K contacts at the CBOE.

S&P 100 Options (OEX) hovered around unchanged mid-day but has rallied, is up 2 points to $702.55 on data showing U.S. jobless claims unexpectedly rose.  European stocks closed lower, Euro traded at 4 1/2 month low.  Big Jobs number before the opening tomorrow.

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Marty Kearney

Mr. Kearney began his long association with the CBOE when he became an independent Market Maker in early 1981. Mr. Kearney traded options full time on the trading floor until 1992 and periodically thereafter until 1996. In early 1992 he became a founding partner and Registered Options Principal of a brokerage firm based in…