Blogging Options: CBOE Morning Update 4.10.13

Volatility as an asset class

Titan Machinery (TITN) is down $3.86 to $22.25 in the premarket after the tractor equipment maker sees FY14 EPS $2.00-$2.30, compared to consensus $2.59. April put option implied volatility is at 78, May is at 51, June is at 50; compared to its 26-week average of 48.

Family Dollar (FDO) is off $2.40 to $57.40 in the premarket after the discount retailer lowered guidance. Overall option implied volatility of 35 is above its 26-week average of 26.

CarMax (KMX) is flat $41.74 in the premarket after the auto dealer reported inline Q4 EPS of 46c on revenue of $2.83B.  April put option implied volatility is at 51, May is at 31, July is 28; compared to its 26-week average of 31.

Options expected to be active on open; GOOG TBT FB JCP AAPL JPM WFC

CBOE S&P 500 BuyWrite Index $BXM @ 948.15, 50-day MA is 932.37.

CBOE Volatility Index (VIX) closed at 12.84, below its 10-day moving average of 13.30, and its 50-day moving average of 13.55.

SPDR S&P 500 ETF Trust (SPY) is recently up 30c to $157.05 in the premarket into the release of President Obama’s budget plan.

Calls with increasing volume at CBOE:

QQQ 4/20/2013 70 21K contracts
SPY 4/12/2013 157 15K
MSFT 4/20/2013 30 10K
NWSA 7/20/2013 32 10K
S 1/18/2014 10 10K
IWM 4/12/2013 92.50 9K
BAC 4/20/2013 13 8K
INTC 4/20/2013 22 8K

China reporting a rise in imports helping stock futures.

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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…