Blogging Options: CBOE Morning Update

Volatility as an asset class

F5 Networks (FFIV) is down $16.42 to $74 in the premarket after the network-gear maker reported less than expected preliminary Q2 earnings and revenue guidance. Overall option implied volatility of 38 is near its 26-week average.

Hewlett-Packard (HPQ) is down $0.25 to $22.10 in the premarket after the technology company announced its Chairman is stepping down and two directors resigned from the board.  April and May call option implied volatility is at 32, June is at 35, August is at 32; below its 26-week average of 36.

Hanesbrands (HBI) closed at $45.12 into the apparel manufacturer initiating a dividend and reaffirming its FY13 earnings and revenue view.  Overall option implied volatility of 28 is near its 26-week average.

Options expected to be active on open; MT FB SIRI CSCO FFIV BBRY GS JPM MSFT

CBOE S&P 500 BuyWrite Index (BXM) closed at $943.54; above its 10-day moving average of 941.98 and above its 50-day moving average of 930.91. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 13.89, above its 10-day moving average of 13.43, and its 50-day moving average of 13.51. www.cboe.com/VIX.

Calls with increasing volume at CBOE:

VXX 4/12/2013 35 60K contracts
EWJ 1/18/2014 13 20K
SPY 4/20/2013 158 17K
NOV 5/18/2013 80 11K
BAC 1/18/2014 15 10K
GM 1/18/2014 30 8K
IWM 4/12/2013 92.5 8K

S&P 500 futures getting clobbered on jobs report, off 17 points.  DJIA Futures off 140, NASDAQ lower by 35.  European stock down 1%. March Non-Farm Payrolls showing a gain of 88k jobs, came in at less than half the consensus 195k to 200k.  12-month average is a shade under 170k.  The unemployment rate dropped a tick to 7.6%, but that was in part due to the Participation Rate dropping to a 30+ year low.

Concerns of North Korea nuclear stability not helping. Sloppy opening.