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. www.cboe.com/BXM

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. www.cboe.com/VIX.

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.